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K92 Mining Inc
Symbol C : KNT
Shares Issued 199,232,437
Close 2019-06-17 C$ 1.73
Recent Sedar Documents

K92 drills 303.3 m of 0.22 g/t Au, 0.14% Cu at Kainantu

2019-06-18 07:20 ET - News Release

Mr. John Lewins reports

K92 MINING EXPLORATION UPDATE - BLUE LAKE PORPHYRY PROSPECT

K92 Mining Inc. has provided an update on exploration at the Blue Lake porphyry prospect located approximately four kilometres southwest of the company's Kora deposit at the Kainantu gold mine in Papua New Guinea.

K92 has now completed three of the six planned holes of depth 400 to 600 metres as well as three shallow holes of depth 50 metres. Each of the three deep holes, KTDD0001/6/7, has intercepted extensive gold and copper mineralization in porphyry-style propylitic chlorite-epidote-albite-magnetite alteration as shown in images on the company's website. The results are considered particularly encouraging given the distance between intercepts, indicating appreciable size potential. Hole KTDD0005 was abandoned at 106 metres due to bogging of rods and redrilled as KTDD0006.

The three shallow holes, KTDD0002/3/4, were designed to test the thickness, geometry and tenor of the mineralized lithocap. Significant gold intercepts were encountered in each of these short holes, associated with leached, silicified intrusives and hydrothermal breccias.

As with the first hole drilled at Blue Lake, KTDD0001, the subsequent deep hole, KTDD0006, intersected a mineralized silica cap, followed by a broad zone of intense argillic alteration (pyrophyllite/kaolinite), before drilling strong propylitic alteration in diorite, predominantly chlorite, with epidote increasing toward the end of the hole. KTDD0007 intersected propylitic alteration from shallow depths. Significantly, KTDD0006 intersected 219.6 metres at 0.16 gram per tonne gold Au and 0.11 per cent copper from 385 metres to termination at 604.6 metres, while KTDD0007 intersected 303.3 metres at 0.22 g/t Au and 0.14 per cent Cu from 190 metres to termination at 493.3 metres. The holes were still in mineralization when completed.

Chris Muller, K92 vice-president, exploration, stated: "As with the previously reported first hole drilled at Blue Lake, these second and third holes have confirmed the potential of Blue Lake as a fertile Au-Cu porphyry system.

"Results to date continue to exceed our expectations, with the initial program expanded from 2,400 metres to 4,000 metres and planning for the second follow-up larger and more targeted drilling program already under way."

Blue Lake (Kotampa project)

Fieldwork in the Blue Lake area, EL470, during September, 2017, identified surficial Au/Ag/Cu mineralization in enargite-bearing crackle and milled breccias, and in vuggy silica exposures. A major silica-alunite lithocap was also mapped, surrounded by extensive pervasive dickite-pyrite and the localized occurrence of stockwork quartz-pyrite-plus/minus-chalcopyrite veins.

A prominent airborne electromagnetic (EM) geophysical anomaly, adjacent to the mineralized dickite-altered diorite, was recognized as being coincident with a high Au in soils (widely spaced ridge and spur) anomaly.

Petrology of rock chip samples confirmed a high sulphidation overprint of outer potassic alteration/mineralization (that is, showing a diversity of sulphides of different phases, demonstrating a later high sulphidation obliteration/resorption of earlier potassic porphyry-style alteration).

K92 geologists commenced an active mapping and sampling program in October, 2018, including detailed mapping at 1:1,000 and the collection of greater than 900 C horizon soil samples on a 50-metre equidistant grid. Drilling commenced in January, 2019, the first drill hole, KTDD0001 yielding an open-ended intercept of 174.6 m at 0.28 g/t Au, 0.22 per cent Cu, from 259.3 metres and was terminated in mineralization at 433.9 metres. Mineralization is associated with propylitic alteration mineral assemblages, predominantly chlorite and epidote.

A large coincident gold and copper anomaly has been revealed, which measures approximately 1.2 km (along north-northeast strike) and 0.8 km (across strike).

As illustrated by the porphyry model of Holliday and Cooke (2007), silica and argillic caps may drape over the potassic and propylitic alteration. At Blue Lake, holes KTDD0001 and KTDD0006 intersected the lithocap and intermediate argillic (pyrite halo) before drilling into the green rock zone (chlorite and progressively epidote dominant) at near-identical elevation. Since neither hole drilled obvious potassic mineralogy, it is presumed that both holes are still within the shallow, or distal environment, with respect to the core of the system.

Current drilling program

The overall intercept in KTDD0006 was diluted by the presence of several weakly mineralized intermineral felsic intrusives that overprint the earlier intensely chlorite-magnetite-epidote-altered diorite, the latter being mineralized.

There is a distinct potential that multiple porphyry intrusives occur in the Blue Lake prospect area, with overprinting mineralized haloes, as at the Golpu and Oyu Tolgoi porphyry complexes. Hydrothermal breccia pipes (diatremes) are often associated with such intrusives and three such breccias, with mineralization, have been encountered at Blue Lake, two of which are associated with strong Au in soil geochemical anomalism.

The initial six-hole program with hole depths of 400 to 600 m depth, are all planned to be drilled in a fence across the prospect, through the centre of a primary coincident Au-Cu-As-in-soil geochemistry anomaly.

After completing the initial diamond drilling program, which has been expanded from 2,400 metres to 4,000 metres, a larger and more targeted drilling program based on the results and interpretation from the current program.

The priority of the current program is to characterize the mineral assemblages, multielement grade shells and structures to build a geological model that will assist in focusing on the core of the porphyry.

All assayed drill holes (KTDD0001 to 4, KTDD0006 and KTDD0007) have returned significant mineralized intercepts, most notably three long intersections of Au-Cu in propylitic alteration in holes KTDD0001, KTDD0006 and KTDD0007, all of which ended in mineralization.

The alteration mineral assemblages and associated mineralization style implies that the porphyry system is likely preserved, given that there is a thick lithocap, with quartz vein density increasing with depth. The entire area at surface, coincident with the Au/Cu geochemical in-soil anomaly is significantly altered by silica, clay and sulphides, with multiple evident overprinting events by palaeo hydrothermal fluids suggesting that there were a series of intrusives releasing volatiles/fluids (some mineralized).

The majority of known porphyry systems in Papua New Guinea and adjacent archipelagos are of Miocene age or younger. Since the widely accepted depth of formation for porphyries is between one and three km depth, most are well preserved, with only the upper or epithermal components exposed. This is contrary to many older (that is, Ordovician) systems in the Americas and in Central Asia, which have been eroded down to the roots, exposing potassic and sodic-calcic alteration at surface.

                          BLUE LAKE -- SIGNIFICANT INTERCEPTS
 
Hole ID         From       To    Interval     Gold     Silver    Copper    Gold equivalent
                 (m)      (m)         (m)    (g/t)      (g/t)       (%)              (g/t)

KTDD0001         5.0     20.0        15.0     0.63          4      0.02             0.7126
KTDD0001       259.3    433.9       174.6     0.28          2      0.22             0.6426
KTDD0002         7.0     22.0        15.0     1.17          3      0.03             1.2549
KTDD0003         8.0     20.0        12.0     0.44          1      0.06             0.5448
KTDD0004         6.9     31.1        24.2     0.48          3      0.03             0.5649
KTDD0006       385.0    604.6       219.6     0.16          1      0.11             0.3413
including      456.9    519.9        63.0     0.27          1      0.16             0.5278
including      596.0    604.6         8.6     0.38          1      0.22             0.7296
KTDD0007       190.0    493.3       303.3     0.22          2      0.14             0.4602
including      328.0    493.3       165.3     0.22          2      0.21             0.5673

(1) Gold equivalent uses copper price of $2.90 (U.S.)/pound; silver price of 
$16.5 (U.S.)/ounce and gold price of $1,300 (U.S.)/ounce.
(2) True widths are unknown at this time as all holes ended in mineralization and there 
is insufficient geological information on dip and orientation of the mineralized body.

 

K92 vice-president, exploration, Chris Muller, PGeo, a qualified person under the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and is responsible for the technical content of this news release. Data verification by Mr. Muller includes significant time on-site reviewing drill core, soil and outcrop sampling, artisanal workings, as well as discussing work programs and results with geology personnel and external consultants.

About K92 Mining Inc.

K92 Mining is currently engaged in the production of gold, copper and silver from the Kora/Kora North deposit from the Kainantu gold mine in Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The company declared commercial production from Kainantu in February, 2018, and announced planned expansion of the mine in March, 2019. An updated preliminary economic assessment on the property was published in January, 2019.

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