11:55 AM EDT, 05/06/2024 (MT Newswires) -- K92 Mining ( KNTNF ) on Monday reported drilling results from the Kainantu gold mine in Papua New Guinea that extended multiple high-grade zones and included a new dilatant zone discovery.

At the Kora South deposit, a new dilatant zone was discovered with intercepts of 78.50 meters at 27.03 grams per tonne (g/t) gold equivalent (AuEq) and 34 meters at 8.14 g/t AuEq. A known dilatant zone was extended with an intercept of 51 meters at 7.04 g/t AuEq.

High-grade zones within Kora's K1 and K2 veins were extended in multiple directions and at higher grades in multiple areas than the resource model. Drill highlights include 3.26 meters at 86.92 g/t AuEq at the K1 Vein and 9 meters at 40.36 g/t AuEq at the K2 Vein.

Step-out drilling to the south at the K2 Vein intersected multiple high-grade gold and copper intersections, including 17.45 meters at 23.79 g/t AuEq.

The J1 Vein at the Judd target saw an extension of the high-grade zone up-dip and in multiple areas at higher grades than the resource model. Drill highlights include 4.13 meters at 69.10 g/t AuEq.

"The latest set of drilling results continue to confirm our view that the resource expansion potential of Kora-Kora South and Judd-Judd South is very significant," said K92 chief executive John Lewins. "The high-grade zones expanded vertically at K1, K2 and J1 are particularly important as they are immediately above our main mine workings, setting ourselves up well for the Stage 3 Expansion over the near and medium term in that area."

Meanwhile, K92 received an outperform rating and $9 price target from National Bank of Canada following the update.

The bank said the results add to K92's expanding database of high-grade intercepts and hint at continuity and expansion potential of both vein systems, including immediately above main mine workings.

National Bank ascribed a neutral bias while noting that the near-term focus remains on the Stage 3 expansion updates and rebounding operations to support balance sheet.

K92 shares were last seen up C$0.36 to C$7.66 on the Toronto Stock Exchange,

Price: 7.66, Change: +0.36, Percent Change: +4.93