K92 (TSX-V: KNT) President Bryan Slusarchuk Over-Delivers with Ramped up Production at the Kainantu Gold Mine
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of K92 (TSX-V: KNT)(OTC: KNTNF), Mr. Bryan Slusarchuk. Bryan, thank you for joining me this afternoon.
Bryan Slusarchuk: Gerardo, thanks for having me on.
Gerardo Del Real: Well pretty exciting news this morning from K92. You provided a production update, you’re shipping concentrate. Can you give us the details Bryan?
Bryan Slusarchuk: Absolutely, Gerardo. This was a big news event for K92. It's what people have been waiting for and John Lewins, our COO, and the rest of his technical team have really over-delivered. The K92 news today details increased tonnage versus what was expected in the AMDAD plan, increased ounces versus what was expected in the AMDAD plan, and note that the grade controlled drilling and sampling further increases what we believe, what we are confident will be there as we move forward in this initial mining area.
What happened, Gerardo, is that if you take a look at that AMDAD mine plan, which we filed and which is the basis for our production startup at Irumafimpa, you'll notice that when you compare the plan versus the actual results, we ended up taking a bunch of rock that was classified as waste and determining that that waste rock had sufficient grade and characteristics that we wanted to mill and process it. And that's just what we did increasing the tonnage quite dramatically.
Gerardo Del Real: Excellent, now I understand that you are shipping concentrate, I believe over 270 tonnes, is that correct, during the first quarter?
Bryan Slusarchuk: That's right, that was during the first quarter. Concentrate shipments are ongoing, concentrate moves from our facility to the Port of Lae, which is on a paved highway close by, the largest port city in the country. We are now shipping concentrate weekly and that's a great position to be in and really reflects a nice catalyst, a milestone for K92 as we advance forward on site.
Gerardo Del Real: Wonderful, now what's the plan for the rest of the year in regards to the ramp up, Bryan?
Bryan Slusarchuk: There's a whole lot going on onsite, Gerardo. You've got this production ramp up, people will see in the news release that there are some very positive upticks versus the original plan in the actual performance. That production will continue to ramp up. We're several months ahead of production in terms of our grade control drilling, that's a really prudent thing to do and puts us in a great position. Outside this consistent ramp up we're also doing a couple of other things on site that should have people excited.
Obviously the ongoing grade control drilling at Irumafimpa, but also remember that we recently announced that we've commenced the underground drive from the Irumafimpa deposit to the Kora deposit. Irumafimpa is where we are in production now, Kora is where we're headed, and there's a big gap of undrilled land in between these two deposits that we think has huge expansion and exploration potential. Remember Kora is a deposit that we put out a preliminary economic assessment on that suggests 108,000 ounces per year of production at an all in sustaining cost of $619 an ounce. Kora is wide open in every direction for expansion. It’s strongly mineralized at the extent of all drilling, and also remember, Gerardo, that the only deep hole that Barrick drilled below Kora intersected a big wide cut, 30 meters plus of mineralization 350 meters below the known Kora deposit.
You can see why we're very excited that we're heading over there and that we'll be able to drill test between Irumafimpa and Kora where we believe, our technical team believes, that expansion potential of this high-grade area is enormous.
Gerardo Del Real: Ramped up production and expansion drilling to increase the resource space, that's the plan.
Bryan Slusarchuk: Absolutely, and we've got a technical team onsite with a track record of doing this all over the world so it doesn't surprise me that the production ramp up has gone so well, and now with the drills turning, targeting expansion, I think we can expect a whole lot of news flow in the coming weeks and months. It's an exciting time to be a shareholder.
Gerardo Del Real: Well with the summer doldrums approaching, Bryan, I know it's important for companies to have catalysts, you definitely don't want to go three or four months without any activity, and I think K92 definitely won't have that problem. It sounds like an exciting summer for K92 and shareholders.
Bryan Slusarchuk: Absolutely, Gerardo, and it's multifaceted, it's the continuance of this successful production ramp up, it's drilling in the Irumafimpa area, and it will be drilling along that underground drive from Irumafimpa to Kora which can provide huge catalysts for us in terms of the expansion of this high-grade resource.
Gerardo Del Real: Fantastic. Well as you check those boxes, Bryan, hopefully I can have you back on. You're going to have tons of news, I'd love to be able to share it with everybody and I want to thank you for your time today.
Bryan Slusarchuk: Thanks for your time, Gerardo.