K92 Mining (TSX-V: KNT) Capital Markets Advisor Bryan Slusarchuk on Quarterly Production Growth & Exploration Program at Porphyry Targets
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is Capital Markets Advisor for K92 Mining (TSX-V: KNT)(OTC: KNTNF), Mr. Bryan Slusarchuk. Bryan, how are you this morning?
Bryan Slusarchuk: Doing really well, Gerardo. Thank you.
Gerardo Del Real: Well, you have a lot going on. K92 announced Q2 2018 production numbers of 10,485 ounces of gold and 128,634 pounds of copper from the Kainantu Gold Copper Mine. You also announced that you've commenced the first ever surface exploration drilling program at the highly prospective porphyry target. Let's take it in order. Talk to me about the production numbers. Good stuff, again.
Bryan Slusarchuk: Absolutely, Gerardo. These numbers are very good. They represent 10% growth of production versus Q1. At the same time, I think it's really important for people to note the head grade in excess of 20 grams per tonne gold. So just excellent grade to the mill during Q2, and it's great to see in the midst of what's been an overall difficult gold environment. It's great to see production growth like this and the big jump versus Q1.
Gerardo Del Real: Now, the guidance for the year, I believe, if I'm not mistaken, was between 42 and 46,000 gold equivalent ounces for the year. Is that correct, Bryan, and are you on target for that?
Bryan Slusarchuk: Yes. That's correct, Gerardo, and absolutely on target for that. Remember, Q1, that was our first quarter of commercial production. We came in around 9,700 ounces gold equivalent. Here we are, Q2, close to 10,800 ounces gold equivalent. So as you can see, we're in a ramp up phase. That ramp up has been going exceptionally well. We believe the ramp up will continue, and we're very nicely positioned to meet guidance.
Gerardo Del Real: Excellent. I mentioned that you have a first surface exploration drilling program at a very prospective porphyry target. What can you tell me about the target, and how is that coming along?
Bryan Slusarchuk: Well, Gerardo, as most of your listeners will remember, in addition to Kora, which is where we're in production now and where we're drilling, where we're targeting dramatic expansion not only of the production profile but of the resource itself, in addition to Kora, which is where our focus has been, we have a large 400-square kilometer land package. The porphyry targets within that land package are the reason that Barrick Gold, the world's largest gold mining company, owned this project in the first place. It's that big, world-class porphyry exploration potential.
Now that Kora is moving along so nicely, we're cash flow positive. We're generating cash flow from operations, we're expanding Kora as we speak. Outside of that, we can now concentrate a little bit on some of this world-class porphyry-style mineralization that exists within the regional package. We just started to drill the first target area. There are 13, 14 different targets on the project, and we're excited to move along with this first area and see how things start to unfold in terms of targeting porphyry.
Now, our focus, of course, is still on Kora. And if you'll remember, not only are we in production at Kora and drilling at Kora, but we're planning to make a decision in terms of targeting an expansion program based on this growing resource. So our focus is at Kora, but we're now, based on ground work we've been able to quietly do over the past several months, starting to drill some of the porphyry targets.
Gerardo Del Real: You mentioned the tough go at it that miners have had, and rough balance sheets, frankly, I think, have contributed to the lack of M&A. I've got to say, Bryan, again, congrats on the execution in a tough, tough market. K92 has really, really, really done a brilliant job on not just the exploration front but actually getting into production and getting out quality quarter after quality quarter. So good work, and hopefully you can come back and fill us in on the next set of results as they trickle in.
Bryan Slusarchuk: Absolutely, Gerardo. I think there'll be a lot of news flow over the next several weeks. So really look forward to getting back and talking with you, not only about production and production growth, but also about the exciting expansion and now exploration drilling that we're doing.
Gerardo Del Real: Good stuff. Bryan, always a pleasure. Thanks again for your time.
Bryan Slusarchuk: Thank you, Gerardo.