Kainantu District: High grade, low cost gold production
KRL’s two tenement packages, KRL South and KRL North, are both highly prospective projects with significant untapped potential in a globally recognised high-grade gold district situated on the Papuan Mobile Belt. There is significant infrastructure and local skills in place, with a strong network of majors from the mining and oil & gas industries operating in the region.
In close proximity to K92 Mining’s ‘Kainantu’ mine, one of the highest-grade gold ore bodies in the world, these two tenement packages display several geological attributes common to the Bilimoia Mineral Field which hosts the K92 lodes:
- Mesozoic metamorphic basement overlain by Tertiary sediments and volcanics intruded by Mid to Late Tertiary igneous units (Elandora Porphyry and Akuna Igneous Complex) both believed to be source and drivers of the regionally extensive mineralization.
- The Kainantu transfer structure transects the Bilimoia field as a NNE trending mineralized corridor: > 20 km long; >2.5 km wide. The corridor projects into the KRL North leases, while several parallel elements mapped within the KRL South leases coincide with emergent phases of igneous rocks. Significant cross-cutting NW and N trending dilational structures which also control mineralization are also present in the leases.
- Mineralization in the Kainantu District includes gold, silver and copper occurring in quartz-Au telluride veins, sulphide Au-Cu-Ag veins, porphyry Cu-Au-Mo systems, Au-base metal skarns and alluvial Au. Most of these styles have been identified in KRL South leases.
- History of successful Au, Ag & Cu mining in the Kainantu District: Bilimoia field, Kathnell, Aifunka, Mt Victor, etc.
Key stats from the neighbouring high-grade K92 gold mine:
- +20.8 g/t Au feed grade (top 4 mine globally for high grades)
- $615/oz Au Eq AISC
- 5.2Moz resource at grade of 9.6 g/t Au
- 2020 production forecast 120koz/pa