K92 Mining (TSX : KNT) (OTCQX : KNTNF) provided its operational outlook for 2023 today.
The company anticipates low-cost gold production of between 120,000-140,000 ounces with an estimated cash cost of $620-680 per ounce, and all-in sustaining cost (AISC) of $1,180-$1,300 per ounce.
The cash cost and AISC per ounce have gone up since 2022 thanks to accelerating sustaining capital and development expenses related to the stages three and four expansions approved in December. Also, supply chain issues delayed the arrival of certain capital items supposed to arrive in 2022.
The expansions were supposed to turn the Kainantu Gold Mine into a tier 1 mine as production scaled. The stage four prefeasibility study details the peak annual production of 500,192 ounces AuEq in 2027. It also includes a life of mine average AISC of $687 per ounce or $444 per ounce net of by-product credits, and self-funding from mine cash flow at $1,600 per ounce of gold.
“In 2022, Kainantu once again took a major step forward, achieving its sixth consecutive year of production growth, including multiple records such as ore tonnes processed, ore tonnes mined, total tonnes mined and underground development,” said John Lewins, K92 chief executive officer and director.
K92 Mining adds more drill rigs and plans to scale in 2023
K92 forecasts 2023 as having an increase in both near-mine and regional activities with expenses in the $13-16 million range. The drill fleet has increased to 11 drill rigs since 2020 and K92 plans to add two more in 2023. It plans to focus its surface and underground exploration on resources growth at multiple different sites. These sites include the Kora, Judd, Kora South, Judd South, Kora Deeps, Judd Deeps and Northern Deeps vein systems as well as the A1 copper-gold porphyry targets
“Importantly, Kainantu finished 2022 strong, achieving multiple quarterly records in the fourth quarter,” said Lewins.
In 2023, we look to continue to build on this positive operational momentum while also focusing on investing in the long-term future of Kainantu via the stage 3 and 4 expansions, which was approved in December 2022 following the renewal of the mining license for a further 10 years through until the end of 2034. This will transform the Kainantu Gold Mine into a tier 1 mine.”
K92 shares dipped $0.11 to trade at $7.95.
Calibre Mining (TSX: CXB) (OTCQX: CXBMF) is another company with a rosy outlook for 2023. Its most recent assays from the Pan Mine property in the Battle Mountain Eureka gold trend in Nevada returned high value prospects.
Specifically, the Coyote target mine included significant mineralization.
1.36 g/t Au over 13.7 metres including 2.78 g/t Au over 4.6 metres in Hole PR22-238
0.61 g/t Au over 18.3 metres in Hole PR22-237
Initial results located approximately 3 kilometres south of the Pan South open pit
Calibre shares rose $0.09 to trade at $1.15.
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