VANCOUVER, British Columbia, Aug. 13, 2024 (GLOBE NEWSWIRE) -- K92 Mining Inc. ("K92" or the "Company") (TSX: KNT; OTCQX: KNTNF) is pleased to announce financial results for the three and six months ended June 30, 2024. Production Quarterly production of 24,347 ounces gold equivalent ("AuEq") or 21,661 oz gold, 1,246,639 lbs copper and 26,754 oz silver (1). Production for the quarter was impacted by the temporary suspension of operations as previously announced. Cash costs of US$919/oz gold and all-in sustaining costs ("AISC") of US$1,510/oz gold (2). Strong metallurgical recoveries in Q2 of 93.7% gold and 95.3% copper, representing the highest gold recoveries since Q4 2019 and record quarterly recoveries to date for copper. Quarterly ore processed of 95,582 tonnes and total ore mined of 99,209 tonnes, with long hole open stoping performing to design, and 1,938 metres of total mine development. Head grade of 8.5 grams per tonne ("g/t") AuEq or 7.5 g/t gold, 0.62% copper and 10.6 g/t silver. Gold and copper grades were in-line with budget, and both gold and copper delivered a positive grade reconciliation when compared with the mineral resource model of 11% and 9%, respectively. Financials Entered into two separate credit facilities for up to US$120 million (the "Loan") with an accordion feature that allows for an increase in the aggregate amount available to US$150 million with Trafigura Pte Ltd ("Trafigura"). As at June 30, 2024, US$100 million of the Loan is available for immediate drawdown (US$40 million drawn) and subsequent to quarter end, US$120 million of the Loan is available. The Company entered into a new offtake agreement with Trafigura. Strong cash and cash equivalent position of US$71.1 million, which excludes restricted cash of $20 million (4). Under the terms of the Loan, the Company has the ability to convert restricted cash to cash and cash equivalents on January 1, 2025. Subsequent to quarter end, the Company completed an additional drawdown of $20 million of unrestricted cash and has $60 million of unrestricted cash available to draw anytime. Operating cash flow (before working capital adjustments) for the three months ended June 30, 2024, of US$17.3 million or US$0.07 per share, and earnings before interest, taxes, depreciation and amortization ("EBITDA") (2) of US$17.1 million or US$0.07 per share. Quarterly revenue of US$47.8 million. Quarterly net income of US$6.1 million or $0.03 per share. Sales of 19,064 oz gold, 898,578 lbs copper and 18,467 oz silver. Gold concentrate and doré inventory of 4,968 oz as of June 30, 2024, an increase of 3,291 oz over the prior quarter. Growth On the Stage 3 and 4 Expansions, 57% of growth capital has been either spent or committed as of July 31, 2024. K92 has completed handover to GR Engineering Services (GRES) for the construction of the 1.2 million tpa ("tonnes per annum") Stage 3 Process Plant, with commissioning of the Stage 3 Process Plant targeting late-April 2025. Multiple long-lead time items have arrived on site for the process plant and well ahead of when required for its construction schedule, including but not limited to: flotation cells, mill components including motors, ball mill (shell and ends), SAG mill (ends), concentrate thickener and tailings thickener. The SAG mill shell is in-country and scheduled to arrive on site imminently. Underground, the two raise bore rigs are operational, with the first raise (5 m diameter) to be completed to upgrade ventilation to the main mine. The first waste/ore pass is scheduled to commence boring in Q3 2024. Strong results in the quarter 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 (3) 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 Vein See the Company's news release dated May 6, 2024 for additional details. Results from the second set of holes were reported in the quarter from K92's maiden drill program at the Arakompa project, with significant bulk intersections and multiple high grade lodes intersected. 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. Exploration has ramped up from 1 rig in Q1 2024 to 4 rigs currently operating. K92 is targeting a maiden mineral resource estimate for Arakompa by Q1 2025. Highlights from the second set of drill results include: KARDD0006 recording 12.60 m at 19.87 g/t AuEq within a bulk intersection of 94.40 m at 3.14 g/t AuEq. KARDD0002 recording 3.70 m at 42.35 g/t AuEq within a bulk intersection of 86.60 m at 2.12 g/t AuEq. 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 AuEq See the Company's news release dated June 10, 2024 for additional details. The Company's interim consolidated financial statements and associated management's discussion and analysis for the three and six months ended June 30, 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 Chart John Lewins, K92 Chief Executive Officer and Director, stated, "In the second quarter, K92 continued to deliver strong financial results even with the impact of the Form 29 (temporary suspension of underground operations for part of March and April) due to the non-industrial fatal incident. Our financial position at quarter end is strong, with $71 million (4) in cash and cash equivalents plus $20 million of restricted cash that can be available January ...