K92 Mining Inc. (TSXV:KNT), one of our top picks for 2020, has rallied 24% in the past month
SmallCapPower | January 17, 2020: In our recent article, 4 Junior Gold Stocks That Could Make Big Moves in 2020, we highlighted K92 Mining Inc. (TSXV:KNT) as one of our top junior gold picks for 2020. Since we published the article, the stock has rallied ~24%. Today we highlight some potential catalysts that could push its stock price even higher.
On January 7, 2020, K92 announced F2020 production guidance; the Company expects to produce between 115k and 125k in gold and gold equivalents, roughly a 68% increase over F2019. Updated guidance is on the back of blockbuster drill results from the Company’s Kora mine, which featured one the highest-grade drill intersections to date at 13m with 288.73 g/t Au. These were also the third-best drill results recorded on the TSX and ASX in F2019. With stellar drill results, we believe the following catalysts could lead to share-price appreciation over the next six to nine months. These include a resource expansion to ~5.0M oz/Au and a Preliminary Economic Assessment (PEA) suggesting a ~ 300,000 oz/Au per year mine. The Kainantu Gold project has shown high-grade drill results recently, which could make the Company a takeover target.
Operations
Current mining operations are focused exclusively on the Kora deposit extension, referred to as Kora North (highlighted in orange Figure 2). During 2018, ~70% of production came from the K1 vein and ~30% from the parallel K2 vein, with 70% of production from cut and fill stopping and 30% from development. Mining is mechanized using twin and single booms Jumbos; 517i, 1700 and 1300 LHDs, and; 20, 30, 40 & 45 tonnes trucks. Material is trucked ~6 km from the portal to the Process Plant by 20 tonne road trucks.
About K92 Mining
K92 Mining is focused on exploration and development of mineral deposits located in Papua New Guinea. The Company’s main asset is the Kainantu Gold Project, consisting of two gold deposits. The Kainantu property covers a total area of approximately 410 square kilometers and is located in the Eastern Highlands Province of Papua New Guinea ~180 km west-northwest of Lae.
Shares of K92 Mining closed Thursday’s trading session up 1% to C$3.27. K92 Mining stock trades at a market cap of C$690 million.
- Market Cap: $690.3M
- 30-Day Return: +24.3%
- 90-Day Return: +41.9%
- 30-Day Average Trading Volume: 625,790
- 90-Day Average Trading Volume: 688,860
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