VANCOUVER, British Columbia, May 13, 2024 (GLOBE NEWSWIRE) -- K92 Mining Inc. ("K92" or the "Company") (TSX: KNT; OTCQX: KNTNF) is pleased to announce financial results for the three months ended March 31, 2024. Production Quarterly production of 27,462 ounces gold equivalent ("AuEq") or 24,389 oz gold, 1,443,300 lbs copper and 35,650 oz silver (1), representing a 39% increase from Q1 2023. Cash costs of US$934/oz gold and all-in sustaining costs ("AISC") of US$1,366/oz gold (2). Ore processed of 130,632 tonnes or 1,436 tpd ("tonnes per day"), an 11% increase from Q1 2023 and 5% greater than the Stage 2A Expansion design rate of 1,370 tpd. During the quarter, multiple throughput records were achieved. Monthly throughput record achieved in January of 57,144 tonnes processed or 1,843 tpd, exceeding the Stage 2A Expansion design rate by 34%; weekly throughput record achieved in January averaging 2,149 tpd, exceeding the Stage 2A design rate by 57%, and daily throughput record achieved on January 21st of 2,389 tonnes processed, exceeding the Stage 2A design rate by 74% (3). In January and February, 95% of operating days exceeded the Stage 2A Expansion plant design rate. Quarterly ore mined of 111,054 tonnes. Financials Strong cash and treasury bill position of US$73.4 million as of March 31, 2024 while remaining debt-free. Operating cash flow (before working capital adjustments) for the three months ended March 31, 2024, of US$20.0 million or US$0.09 per share, and record earnings before interest, taxes, depreciation and amortization ("EBITDA") (2) of US$17.6 million or US$0.07 per share. Quarterly revenue of US$59.8 million, an increase of 48% from Q1 2023. Quarterly net income of US$3.1 million or $0.01 per share. Sales of 27,996 oz gold, 1,582,668 lbs copper and 38,812 oz silver. Gold concentrate and doré inventory of 1,677 oz as of March 31, 2024, a decrease of 3,608 oz over the prior quarter. Growth On the Stage 3 and 4 Expansions, 52% of growth capital has been either spent or committed as of April 30, 2024. K92 has completed handover to GR Engineering for the construction of the 1.2 million tpa ("tonnes per annum") Stage 3 Process Plant, with commissioning of the Stage 3 Process Plant now targeting late-April (previously by end of March 2025) due to a significantly wetter and longer than average rainy season. Fortunately, as this occurred early in the mobilization process, cost variation is minor. Underground, two raise bore rigs are undergoing electrification and will commence boring imminently, with the larger raise bore commencing works for a ventilation raise first followed by the first waste/ore pass. The first waste/ore pass is scheduled to commence boring in Q3 2024. During the quarter, results from the first two holes from K92's maiden drill program at the Arakompa project recorded significant near-surface mineralization, with 4 high-grade lodes intersected in hole KARDD0002. Between the high-grade lodes, the tonalite to dioritic host rock is overprinted with porphyry style mineralization increasing the potential for bulk mining. The target size of Arakompa is very large, with mineralization demonstrated from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within a ~150-225 m wide mineralized intense phyllic altered package, and exhibits a vertical extent of +500 m. Arakompa is sparsely drilled, with K92's maiden drill results representing the first drilling on the project completed in 32 years. A total of 18 holes were drilled historically, with the vast majority shallow. Highlights from the maiden drill program include: KARDD0002 recording 7.20 m at 24.76 g/t AuEq, 5.70 m at 9.94 g/t AuEq, 5.30 m at 6.06 g/t AuEq and 3.60 m at 3.38 g/t AuEq (4). KARDD0002 recording a bulk intersection of 219.8 m at 1.59 g/t AuEq with a higher grade core of 149.4 m at 2.12 g/t AuEq, starting at 5.2 m from surface.Other historic highlights reported include: 004DA92 recording 4.00 m at 32.03 g/t AuEq 013AD92 recording 4.00 m at 20.21 g/t AuEq 016AD92 recording 6.30 m at 14.96 g/t AuEq 010AD92 recording 9.20 m at 10.67 g/t AuEqSee news release dated February 21, 2024 for additional details. Subsequent to quarter end, strong results from 140 diamond drill holes were reported from underground and surface at Kora, Kora South, Judd, and Judd South deposits in addition to Kora and Judd Northern Deeps. Multiple dilatant zones intersected at Kora's K2 Vein, including a new dilatant zone discovered outside of the Kora resource at Kora South and the extension of an existing dilatant zone down-dip: Kora South new dilatant zone intercepts: KUDD0053: 78.50 m at 27.03 g/t AuEq KUDD0056: 34.00 m at 8.14 g/t AuEq Known Dilatant zone extended down-dip: KUDD0058: 51.00 m at 7.04 g/t AuEq High-grade zones extended in multiple directions including up-dip from the main underground mining area at the K1, K2 and J1 Veins, to the South outside the Kora resource at the K2 Vein and 300 m to the North near surface at the J1 Vein. Highlights include: KMDD0590: 3.26 m at 86.92 g/t AuEq from the K1 Vein KMDD0634: 12.09 m at 18.90 g/t AuEq from the K1 Vein KMDD0662: 9.00 m at 40.36 g/t AuEq from the K2 Vein KMDD0654A: 17.45 m at 23.79 g/t AuEq from the K2 Vein JDD0235: 4.13 m at 69.10 g/t AuEq from the J1 Vein KODD0055: 9.85 m at 7.58 g/t AuEq from the J1 VeinSee news release dated May 6, 2024 for additional details. The Company's interim consolidated financial statements and associated management's discussion and analysis for the three months ended March 31, 2024 are available for download on the Company's website and under the Company's profile on SEDAR+ (www.sedarplus.ca). All amounts are in U.S. dollars unless otherwise indicated. See Figure 1: Quarterly Production, Cash Cost and AISC ChartSee Figure 2: Quarterly Total Ore Processed, Development Metres Advanced and Total Mined Material ChartSee Figure 3: Process Plant Throughput Performance, Daily Records and Near-Records John Lewins, K92 Chief Executive Officer and Director, stated, "During the first quarter, K92 delivered strong financial results and above-budget production, even with the temporary suspension of underground operations for the last 22 days of March following a non-industrial incident. Since the lifting of the temporary suspension of underground operations in the first half of April, we have been pleased with the focus and motivation of our workforce, with operations having returned to normal. Financially, we remain in a strong position with $73 million in cash and treasury bills at quarter end, plus significant liquidity with the $100 million loan with Trafigura. On the Stage 3 Expansion, we continue to move forward on multiple initiatives and as of April 30th, 52% of the Stage 3 and 4 Expansion growth capital has now been either spent or committed. The complete handover to GR Engineering for the construction of the Stage 3 Process Plant was a major milestone, in addition to the commencement of raise bore works planned for later this month, which will drive a step-change in productivity underground over the next few months. And lastly, as shown this past week with our exploration drilling results, the Kora-Kora South and Judd-Judd South system is world class, has significant expansion potential and with the increase in drilling activity at Arakompa, we expect exploration to continue to be a driver of value during the Stage 3 Expansion construction period and beyond." Mine Operating ...