The Asia Miner

OCT-DEC 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 19 of 75

18 | ASIA Miner | Volume 13 • Issue 4 | 2016 Papua New Guinea HIGHLANDS Pacific and joint venture partner Anglo American have recommenced exploration drilling at the Star Mountains Cop- per-Gold Project in Papua New Guinea. The US$3 million program, which will increase the 2016 Star Mountains exploration budget to US$9 million, was due to commence in September and is sched- uled for completion by the end of 2016 . The exploration is funded by Anglo American and involves 3500 metres of drilling at two yet to be drilled targets – Unfin and Fune. The targets have been identified following an extensive fieldwork pro- gram involving up to seven field crews undertaking geological map- ping, rock chip, soil and stream sediment sampling combined with results from an airborne ZTEM survey covering more than 3300 line kms . Highlands managing director John Gooding said the Star Moun- tains tenements were very exciting and provided the potential to host a major copper porphyry system. "The contribution of Anglo American demonstrates their commit- ment to the Star Mountains project, and we remain quietly confident that ongoing exploration this year will identify further mineralisation . The extensive field work in the first 6 months of the year has provid- ed a lot of information and many interesting targets to be followed up," he said . The 2016 program will build on the successful drilling completed in 2015, which confirmed the presence of mineralisation at the two main prospects tested so far – Olgal and Kum Kom . A total of nine holes were drilled during the 2015 campaign, for 5387 metres . At the Olgal prospect best results were 183 metres from 168 metres downhole @ 0 . 53% copper and 0 . 58 grams/tonne (g/t) gold, including 16 metres from 198 metres @0 . 69% copper and 0 . 34 g/t gold and 87 metres from 260 metres @ 0 . 67% copper and 0 . 84 g/t gold; 430 metres from 168 metres @ 0 . 39% copper and 0 . 24 g/t gold; and 434 . 9 metres @ 0 . 52% copper and 0 . 72 g/t gold, including 100 metres from 76 metres @ 0 . 82% copper and 1 . 39 g/t gold . At Kum Kom prospect best results were 30 . 6 metres @ 0 . 61% copper and 0 . l53 g/t gold, including 12 . 1 metres from 292 . 2 me- tres @ 0 . 94% copper and 0 . 72 g/t gold; and 13 metres from 107 metres @ 1 . 3% copper and 0 . 53 g/t gold . Under a December 2014 agreement, Anglo American can acquire an up to 80% interest in the JV . WITH the production re-start process at the high-grade Irumafim- pa gold deposit well advanced, on schedule and on budget, K92 Mining has commenced an exploration drilling program targeting an expansion of resources . A second diamond rig is now on site targeting an expansion of the Judd Vein System . K92 was fully funded to restart production at Irumafimpa, which forms part of the Kainantu project, when it began trading publicly on the TSXV on May 25, 2016 . Since then the company has received approximately $18 . 5 million in additional capital through private placements and the exercise of warrants . The additional capital provides K92 with increased financial flex- ibility to accelerate completion of the underground incline drive from Irumafimpa deposit to the Kora deposit, with drill testing along the way, and expansion drilling in the Irumafimpa area. K92 has engaged Quest Exploration Drilling (QED) to undertake diamond drilling underground at Irumafimpa due to its extensive experience in the Asia Pacific, including in PNG where QED has a regional office and workshop in the city of Lae, near the Kainantu project site. QED has provided two rigs, one focused on drilling out the Irumafimpa ore body for grade control and mine planning purposes, and the second for drilling of the Judd Vein System . The initial resource estimate for Kora and Irumafimpa deposits is 1 . 84 million inferred ounces @ 11 . 6 grams/tonne (g/t) gold equiv- alent and 240,000 indicated ounces @ 13 . 3 g/t . This is based on 78,935 metres of drilling from 767 holes and 18,312 metres of assayed intervals across all lodes . Kora remains open in all direc- tions and strongly mineralised at the extent of drilling . Judd was identified from earlier drilling by previous owner Barrick Gold, and exploration work, as having a strike length of at least 2500 metres running parallel to and to the east of the Irumafimpa and Kora deposits, only 50 to 100 metres from the main incline . To guide the resource expansion and exploration mandate, K92 has appointed Chris Muller as exploration manager . K92's chief operating officer and director John Lewins said, "The technical team onsite has done an excellent job with the production re-start and we are on schedule and on budget . With that focus on track, and with the enhanced financial flexibility re- sulting from our recent financings, we are now looking to target a resource expansion that we believe exists . " Star Mountains drilling resumes Underground development at K92 Mining's Irumafimpa gold deposit in PNG . K92 drilling K92 drilling targets expansion targets K92 drilling targets expansion expansion

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