K92 Mining (TSX-V: KNT) Capital Markets Advisor Bryan Slusarchuk on 2018’s Analyst-Beating Production Numbers from the Kainantu Gold Mine in Papua New Guinea
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 afternoon? You're joining me live from Roundup.
Bryan Slusarchuk: Doing really well, Gerardo. K92 is actually in the Core Shack at Roundup and we're proudly displaying core from our recent drilling efforts at the Kora deposit, which, as your regular listeners will know, is where we're conducting quite an aggressive expansion and exploration drill program, as well as concurrently mining and processing from the Kora North area.
Gerardo Del Real: Well, it's been a productive quarter – frankly, a productive year. You just announced record production from the Kainantu Mine. No coincidence that K92 was also named to the 2019 OTCQX Best 50. Talk about trending the right way at the right time. Gold is at $1,310 as we speak. It looks poised to head higher. You just had record production, as I mentioned a second ago.
Can you talk a bit about the numbers and what we can look forward to? It's been an incredible 2018. You're starting 2019 the same way that you executed last year. So tell us a little bit about the quarter there, Bryan.
Bryan Slusarchuk: We've got really nice momentum on site, Gerardo. 2018 was a great year and Q4, as people will have seen, was a record production month for K92. In fact, the production in Q4 was more than 50% higher than in any previous quarter. So the momentum just continues to build on site from a production standpoint. It's also very important to note that while Q4 was very important from a production perspective, it was also an incredible quarter in that we updated the resource at Kora North. We put out a spectacular PEA describing a large expansion of production, an IRR of 350%, all for a low capex, sub-$14 million, that is anticipated fully funded from cash flow from operations.
Gerardo Del Real: Let me read some of the highlight numbers from the recent quarter. Q4 production with 16,451 ounces of gold, 170,000 pounds of copper, 3,095 ounces of silver for a total of 16,844 gold equivalent ounces. Not only were the grades impressive, not only was it a record production quarter K92, but you did it safely. We all know about the unfortunate and recent tragedy in Brazil. K92, no lost-time injuries recorded during Q4 and for the entire 2018. So congrats on that front as well. It's not highlighted often enough, but it's good to do things right.
Bryan Slusarchuk: Absolutely, Gerardo, and safety is the number one priority of the team at Kainantu and is a real testament to the leadership we have over there and in fact the entire staff and the contractors. Q4, Gerardo, was big. 2018 was big. Momentum continues on site. We beat every analyst's estimate as far as 2018 production. We also beat our own internal guidance as to 2018 production and I anticipate with multiple drills turning on site, with production ongoing, that we'll have a lot of news flow here in Q1 2019.
Gerardo Del Real: Well, Bryan, I'm going to let you go because I think that's as efficient an update as we can possibly get. I'll let you get back to it there at the Core Shack. Thank you so much for your time and of course I'm looking forward to having you back on.
Bryan Slusarchuk: Great thanks, Gerardo. As we speak, there are a lineup of people looking at the core at K92. It's a very fun event to be at, with gold moving and with the spectacular drill results that have been coming out of the project in PNG.
Gerardo Del Real: It's amazing how the sector works. We couldn't get anybody to buy the stock at $0.40, but they love it at $1.
Bryan Slusarchuk: Absolutely.
Gerardo Del Real: Thank you, Bryan.
Bryan Slusarchuk: Thanks, Gerardo.