K92 MINING ANNOUNCES SECOND SET OF DRILL RESULTS FROM MAIDEN PROGRAM AT ARAKOMPA; SIGNIFICANT STRIKE EXPANSION, DELINEATION OF LARGE NEAR SURFACE BULK MINERALIZED ZONE AND MULTIPLE HIGH-GRADE INTERSECTIONS

Mining
Monday, June 10th, 2024 2:11 pm EDT

K92 Mining Inc. has released its second set of drilling results consisting of nine holes for total results of 11 holes released to date from its maiden surface diamond drill program at Arakompa, located approximately 4.5 kilometres from the Kainantu gold mine process plant in Papua New Guinea. K92’s maiden drill program at Arakompa represents the first drilling on the target in 32 years, with limited historic drilling completed, comprising 18 holes totalling 1.8 km of mostly shallow drilling.

• Significant bulk-tonnage strike defined of over 400 metres, with bulk intersections drilled to date by K92 recording an average true thickness of 67 metres, and mineralization recorded to a maximum vertical depth of approximately 350 metres to date. Bulk intersection highlights include:
  • KARDD0006: 94.40 m at 3.14 grams per tonne gold equivalent (AuEq) (3.06 g/t gold, three g/t silver, 0.02 per cent copper);
  • KARDD0011: 86.60 m at 2.12 g/t AuEq (2.03 g/t Au, one g/t Ag, 0.05 per cent Cu);
  • KARDD0010: 66 m at 2.10 g/t AuEq (1.86 g/t Au, four g/t Ag, 0.12 per cent Cu) — hole terminated prematurely and ended in mineralization;
  • KARDD0009: 107.10 m at 1.76 g/t AuEq (1.59 g/t Au, three g/t Ag, 0.09 per cent Cu);
  • KARDD0004: 117 m at one g/t AuEq (0.89 g/t Au, three g/t Ag, 0.04 per cent Cu) and 46.50 m at 1.10 g/t AuEq (0.96 g/t Au, seven g/t Ag, 0.03 per cent Cu);
  • KARDD0008: 60 m at 1.18 g/t AuEq (1.06 g/t Au, six g/t Ag, 0.03 per cent Cu);
  • KARDD0003: 80.50 m at 1.18 g/t AuEq (1.09 g/t Au, three g/t Ag, 0.03 per cent Cu);
  • KARDD0002: 219.80 m at 1.59 g/t AuEq (1.45 g/t Au, three g/t Ag, 0.07 per cent Cu), including 149.40 m at 2.12 g/t AuEq (1.93 g/t Au, three g/t Ag, 0.09 per cent Cu) (previously reported).
• Multiple high-grade lodes intersected, often within bulk mineralized zones, with highlights including:
  • KARDD0006: 12.60 m at 19.87 g/t AuEq (19.79 g/t Au, three g/t Ag, 0.02 per cent Cu);
  • KARDD0011: 3.70 m at 42.35 g/t AuEq (40.84 g/t Au, 17 g/t Ag, 0.82 per cent Cu);
  • KARDD0010: 1.80 m at 16.18 g/t AuEq (15.37 g/t Au, 21 g/t Ag, 0.35 per cent Cu);
  • KARDD0009: 6.70 m at 14.35 g/t AuEq (14.19 g/t Au, nine g/t Ag, 0.03 per cent Cu);
  • KARDD0004: 11.20 m at 5.89 g/t AuEq (5.64 g/t Au, six g/t Ag, 0.11 per cent Cu);
  • KARDD0003: 8.50 m at 7.48 g/t AuEq (7.23 g/t Au, 12 g/t Ag, 0.06 per cent Cu);
  • KARDD0008: 11.40 m at 4.75 g/t AuEq (4.44 g/t Au, 21 g/t Ag, 0.03 per cent Cu).
• Exploration expanded from one drill rig operating at the beginning of 2024, to three drill rigs currently operating. Fourth drill rig planned to commence drilling imminently. Mineralization open along strike, at depth and only approximately 20 per cent of the 1.7 plus km mineralized corridor strike length has been drill tested to date by K92, defined from rock chips, historic drilling and local workings. Additionally, of the strike drilled by K92 to date, the eastern side of the corridor has not yet been drill tested.
• K92 is targeting a maiden mineral resource estimate for Arakompa by first quarter 2025.

John Lewins, K92 Chief Executive Officer and Director, stated, “The results from our maiden drill program to date represent a very exciting period for K92, Papua New Guinea and our various stakeholders, as our regional exploration program is rapidly unlocking the potential of Arakompa, a target that has not been drilled for 32 years and previously seen very limited historical work completed. Importantly Arakompa is nearer to our process plant than our producing Kora and Judd deposits.

There was one drill rig operating at the beginning of the year and driven by the outstanding results to date we have now increased to three drill rigs operating. A fourth drill rig is planned to commence drilling imminently and we are targeting a maiden resource by Q1 2025. We see the potential for Arakompa to add another stage of organic growth beyond the Stage 3 and 4 Expansions at Kora and Judd that are currently under construction.

We look forward to providing further updates in due course.”

Chris Muller, K92 Executive Vice President Exploration, stated “Most of the holes drilled in our maiden program have intersected high-grade lodes amid long intervals of moderate grade gold in phyllic alteration recording significant bulk intersections. What is exceptionally exciting is that, while we understand the strike length of the Arakompa corridor is more than 1.7 km, the true width is yet to be evaluated and is already shown to be substantial, with the eastern side of the corridor yet to be drill tested. Importantly the depth potential is also very significant, with the deepest hole, KARDD0010, effectively ending in mineralization at approximately 350m below surface.”

Arakompa Vein System Background

The Arakompa project is interpreted to be an intrusive related gold-copper-silver epithermal vein system with similarities to the producing Kora and Judd vein systems. A significant difference at Arakompa is that it is hosted in tonalite to dioritic rock, whereas Kora and Judd are hosted predominantly in metasediments (phyllite).

Mineralization at Arakompa is in pronounced vein lodes but is also widespread across a very broad envelope, hosted in strongly altered tonalite and diorite. This has been interpreted to have resulted from collapsing argillic and advanced argillic alteration and the propylitic alteration of the basement tonalite are interpreted to originate from the intrusion of a large magmatic porphyry body. Phyllic alternation appears to be associated with gold mineralization, providing a large halo (at least 100 m wide) around the vein corridor. There has likely been an upwelling of phyllic alteration from the porphyry into the high-grade veins. This has resulted in mineralization between the veins, providing the potential for bulk mining.

Multi-stage mineralizing events with several phases of quartz-sulphide development is apparent within the veins themselves. The sequence of early quartz deposited from a mesothermal dilute fluid followed by pyrite-copper-gold plus or minus Bi-Te-Pb-Zn-Sn mineralization at Arakompa has many similarities to the same events encountered at Kora and Judd.

The main sulphides are pyrite, chalcopyrite, bornite and bismuthinite. As at Kora, chalcopyrite forms late, overprinting early phases of pyrite. Gold is documented in petrological reports and shown in photomicrographs as occurring in quartz, or often as inclusions overgrown by chalcopyrite.

Porphyry evidence is widespread at Arakompa. Localized, high-level B veins (quartz with centreline pyrite) are present, typical of the upper parts of a porphyry system. Magnetite-epidote alteration represents classic prograde porphyry assemblages, indicative of the inner propylitic shell. Chalcocite is also locally present, suggesting an underlying copper-enriched body.

The maiden drill program by K92 is the first drilling completed on the target in 32 years, with limited and shallow drilling completed historically (18 holes, 1,766 m drilled). Of the 18 holes drilled historically, there were 15 intersections above 5 g/t AuEq, 8 intersections above 10 g/t AuEq and 3 intersections above 20 g/t AuEq, with highlights including:

• 004DA92 – 4.00 m at 32.03 g/t AuEq (3.32 m true thickness);
• 013AD92 – 4.00 m at 20.21 g/t AuEq (3.40 m true thickness);
• 001AD92 – 2.80 m at 16.18 g/t AuEq (2.41 m true thickness);
• 005AD92 – 2.00 m at 32.01 g/t AuEq (1.26 m true thickness);
• 016AD92 – 6.30 m at 14.96 g/t AuEq (2.39 m true thickness);
• 010AD92 – 9.20 m at 10.67 g/t AuEq (4.32 m true thickness).

Surface field work completed historically and by K92 has demonstrated that the target size of Arakompa is significant, with mineralization observed from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within an approximately 150 to 225 m wide mineralized intense phyllic altered package, and a vertical extent of over 500 m.

Drill Hole Sampling Methodology, QA/QC and Qualified Person

The diamond drill hole is first logged to determine the sampling intervals, which range from a minimum of 0.1 metres to generally 1 metre. The drill core is sawn half core cut along a reference line, with the remainder of the core returned to the core tray. Core samples are then placed in numbered calico and plastic bags, with a numbered sample ticket for dispatch to the assay laboratory. Samples are separately assayed for gold, copper and silver. K92’s procedure includes the insertion standards, blanks and duplicates. Gold assays are by the fire assay method. Copper and silver assays are by three-acid-digestion method (nitric, perchloric & hydrochloric mix).

K92 maintains an industry-standard analytical quality assurance and quality control (QA/QC) and data verification program to monitor laboratory performance and ensure high quality assays. Results from this program confirm reliability of the assay results. All sampling and analytical work for the mine exploration program is performed by Intertek Testing Services (PNG) Ltd, an independent accredited laboratory that is located on site. External check assays for QA/QC purposes are performed at SGS Australia Pty Ltd in Townsville, Queensland, Australia.

K92 Executive Vice President Exploration, Mr. Chris Muller, PGeo, and K92 Mine Geology Manager and Mine Exploration Manager, Andrew Kohler, MAIG, both Qualified Persons under the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed and are responsible for the technical content of this news release. In addition to the analytical QA/QC program outlined above, data verification also includes significant time onsite 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 engaged in the production of gold, copper and silver at the Kainantu Gold Mine in the Eastern Highlands province of 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 is in a strong financial position. A maiden resource estimate on the Blue Lake copper-gold porphyry project was completed in August 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

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