Quarterly production of 24,347 ounces gold equivalent (AuEq) or 21,661 oz gold, and 26,754 oz silver, and quarterly sales of 19,064 oz gold, and 18,467 oz silver.
As previously announced, production for the quarter was impacted by the temporary suspension of underground operations for approximately a month resulting from a Form 29 issued by the Mineral Resources Authority of Papua New Guinea after a non-industrial fatal incident occurred on site, which significantly impacted April production as underground operations re-ramped up and processing stockpiles were rebuilt.
K92 expects operations in the second half of the year to be significantly stronger than the first half, reiterating 2024 operational guidance of 120,000 to 140,000 oz and AuEq at $820-$880/oz cash costs, and $1,440-$1,540/oz all-in sustaining costs, with production likely in the lower half of the guidance range.
Strong metallurgical recoveries in Q2 of 93.7% gold, representing the highest gold recoveries since Q4 2019.
Quarterly ore processed of 95,582 tonnes with a head grade of 8.5 grams per tonne AuEq or 7.5 g/t gold, 0.62% copper and 10.6 g/t silver. Gold grades were in-line with budget, and gold delivered a positive grade reconciliation when compared with the mineral resource model of 11% and 9%, respectively.
John Lewins, K92 Chief Executive Officer and Director, stated, “The impact of the Form 29 (temporary suspension of underground operations) on the first and second quarter has, to some extent, hidden many significant operational bright spots, particularly in terms of plant throughput capabilities, metallurgical recoveries, positive grade reconciliations and strong long hole stoping performance versus design.
As we look forward to the second half of the year, we expect it to be significantly stronger than the first half, driven by a combination of mining sequence, higher throughput rates, more mining fronts, progressive productivity increases through the completion of infrastructure upgrades in addition to ongoing continuous improvement initiatives.
As a result, we reiterate our operational guidance of 120,000 to 140,000 oz AuEq production at $820 to $880/oz Au cash costs and $1,440 to $1,540/oz Au all-in sustaining costs, with production likely in the lower half of the range.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
