K92 Mining Inc. announced results from the updated resource estimate completed on the Kora and Judd deposits, at its producing Kainantu Gold Mine in Papua New Guinea. The resource estimate is based on surface and underground exploration diamond drilling and underground face sampling. The focus of exploration at Kora and Judd since the previous resource estimates (previous effective date of October 31, 2021 for Kora and December 31, 2021 for Judd) has been predominantly on resource growth.

Underground drilling consists of diamond core for a range of core sizes depending on the length of hole and expected ground conditions. Sampling is sawn half core under geological control and generally ranges between 0.5m to 1.0m. Underground face sampling is completed for every fired round and is to industry standard.

QAQC data indicated no significant issues with the sampling or the accuracy of the on-site analysis. Current core recovery of the mineral zone is +95%, with initial drilling recoveries around the 90% mark. Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration, and mineralization.

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. The geological interpretation of the vein systems is represented as 3D wireframe solids snapped to a combination of diamond drillhole data and underground face sampling.

Definition of the wireframes is based on identified gold (and copper and silver) mineralization in drill core nominally at a 0.1-0.2 g/t Au gold cut-off in conjunction with geological control/sense and current mining widths. The Kora Link is a broader zone of more variably continuous mineralization and butts onto both the K1 and K2 lodes in various places. A total of 4 lodes were delineated for the Judd deposit, with a dominant J1 lode and subordinate parallel lodes for J2, J3 and J1W.

The wireframes were used to extract 1-metre ?best-fit? composites (minimum of 0.5m) from the drillhole & sampling database for gold, copper and silver. A total of 30,791 composites were used in the grade interpolation, 24,925 for Kora and 5,866 for Judd.

A gold top cut of 1000 g/t was applied to K2, a 400 g/t top cut was applied to the Kora Link and a 400 g/t top cut was applied for the Judd composites. A top cut of 300 g/t was applied to the silver composites but no top cuts was applied to the copper composites. Variography was good for the mined areas of K1 and J1 (due to the face sampling) but only moderate to poor for other areas, as would likely be expected for the style of mineralization.

Grade interpolation of the composite data was completed using Ordinary Kriging with a block size of 1m (X direction) by 5m (Y direction) by 5m (Z direction). A larger block size check model for Kora indicated no evidence of over-smoothing of the gold grade with the smaller block size. A check model excluding the face sampling data indicated no significant difference in gold grade for the measured and indicated estimates at Kora.

Density data was modelled using Ordinary Kriging on a total of 2,778 sample measurements for the different lodes. Density values were determined using the weight in air/weight in water method (Archimedes Principle) on single pieces of representative core. Default average density values were applied to the different lodes where there was a lack of modelled data.

Average density for the global estimates are 2.77t/m3 for Kora and 2.61t/m3 for Judd. A three-pass search strategy was used for the grade interpolation. Search ellipse parameters are listed below.

4 search domains with varying ellipsoid orientations were used for both of K1 and K2 with the search ellipse orientations generally reflecting the subtle changes in dip and strike of the vein systems. The much smaller Kora Link Lode required only 2 search domains as did the J1 and J2 lodes at Judd. Allocation of the classification of the Mineral Resources is derived from the search pass numbers produced from the grade interpolation which essentially is a function of the drillhole and face sample data point distribution. Additional considerations were included in the assessment of the classification; in particular, the geological understanding and complexity of the deposit, sample recovery, quality of the QAQC sampling and outcomes, density data, check models and reconciliation with production.

All material mined within the mineral wireframes up to the effective date has been removed from the resource model. Gold reconciliation of the new resource model with the global mill feed material up to the end of the third quarter for 2023 has been reasonably good with the difference in gold ounces from the mill being within ~1% of that estimated by the model. The Inferred Mineral Resources in this estimate have a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve.

It is reasonably expected that the majority of the Inferred Mineral Resource could be updated to an Indicated Mineral Resource with continued exploration. Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.6481+ Ag g/t*0.0114. Gold price USD 1,700/oz; Silver USD 22.5/oz; Copper USD 4.00/lb.

Metal payabilities and recoveries are incorporated into the AuEq formula. Recoveries of 95% for copper and 80% for silver. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. It is anticipated that the updated Mineral Resource estimate will not result in a material change to the mineral reserve estimate set forth in the Technical Report entitled ?Independent Technical Report, Kainantu Gold Mine Integrated Development Plan, Kainantu Project, Papua New Guinea? with an effective date of January 1, 2022 (the ?IDP Technical Report?).

In addition, the increase to the Measured and Indicated mineral resources and inferred mineral resources will not materially impact the design parameters and conclusions outlined in the Kainantu Stage 3 Expansion Definitive Feasibility Study Case or Kainantu Stage 4 Expansion Preliminary Economic Assessment Case of the IDP Technical Report. However, as a result of the updated Mineral Resource estimate, the Company expects the potential mine life to be extended for both the Stage 3 Expansion Definitive Feasibility Study Case and Stage 4 Expansion Preliminary Economic Assessment Case.