Gold Snapped a 3-Year Losing Streak in 2016
Recapping a successful year for K92 Mining, and 2017 plans
By Kevin Silva
Although the price of gold was off its intra-year high, it did snap a three year losing streak and closed up approximately 9% for 2016 — and 2017 has started off nicely, with gold up since the first of the year, although in rather light trading.
When assessing the year ahead and the various goals that gold companies set out, it’s important to consider those targets relative to what these operators did in the previous 12 months.
2016 was a big year for K92 Mining Inc. (KNT: TSX V), and with all that has been accomplished onsite, it is hard to believe that it was only 7 months ago that this company started to trade publicly.
Since starting to trade at the end of May 2016, K92 refurbished their mine and mill on schedule and on budget, started production at the gold deposit known as Irumafimpa, provided guidance on significant production growth plans, commenced grade control and expansion drilling at Irumafimpa and the adjacent Judd vein system, forced acceleration/realized the subsequent exercise of 10 million warrants, and raised substantial capital at successively higher levels to fund this aggressive growth strategy.
While many companies in the space were quiet in December, K92 put out significant news, related to the signing of a long-term power supply agreement.
This power supply news is a significant, important and de-risking milestone. The power supply agreement gives K92 the combination of stability (in terms of both competitive price and ongoing supply) and also provides a window into the reputation that K92 is building in PNG as a serious long term player in the country’s growing mining sector. And, importantly, this stable access to hydroelectric power gives K92 a huge advantage over diesel-supported operations that are prone to big power price increases if oil moves higher.
In 2017, there is much to look forward to for K92 investors. Some of this has been discussed by third party groups, including analysts from Haywood Securities and Clarus Securities, post their site visit to the K92 project, but to reiterate a few potential highlights coming up:
– reaching a steady state of gold production at Irumfimpa
– drilling at Irumafimpa and at the nearby Judd Vein System
– commencement of an underground access and exploration drive from Irumafimpa to Kora
– drill testing between Irumafimpa and Kora along with testing Kora at depth and further along strike
– exploration in brownfield areas of the property such as Maniape and Arakompe
– targeting the conversion of additional Barrick historical resources to NI 43-101 compliant resources
Ian Stalker, K92 CEO, states, “2016 has given K92 a great platform, and 2017 holds incredible promise based on the targeting of production growth, resource growth and the world class exploration upside.”
The company has a strong group of institutional shareholders and trades in Canada under the symbol KNT (TSX.V), in the United States (KNTNF) and in Germany (92K).