The results set the stage for the planned stage-three definitive feasibility study and updated preliminary economic assessment, which are scheduled for April-June, the company said.
The resource update for the Kora deposit showed a measured and indicated resource of 2.1 million ounces at 9.20 grams per tonne gold equivalent, which was a 91% increase from the previous 1.1Moz in April 2020. The gold cut-off grade was of 1.75g/t.
The maiden mineral resource estimate at the Judd deposit showed a measured and indicated resource of 0.13Moz at 11.00g/t AuEq and an inferred resource of 0.18Moz at 5.66 g/t AuEq, also with a gold cut-off grade of 1.75g/t.
"Overall, we have mixed views on the release," Canaccord Genuity Capital Markets analyst Michael Fairbairn said.
"The substantial resource conversion at Kora was impressive and tees up the company for the upcoming ‘stage-three' feasibility study and accompanying PEA," he said.
"We also view the maiden Judd resource favourably, and although it was smaller than we anticipated, it highlighted strong gold and copper grades, and we expect it will continue growing over time as drilling continues," he added.
K92 CEO and director John Lewins was also confident of increasing resources at Kainantu, saying there remains "tremendous potential".
"The limits of Kora have not been found, and it remains open along strike and at depth. Judd, running sub-parallel to Kora, is open in all directions and we believe exploration is only just beginning to understand its potential, after discovering high-grade mineralisation underground in Q4 2020," he said.
"Last week, Kora South and Judd South reported maiden drilling results from its first two step-out holes, including 6.20m at 17.26g/t AuEq from [the] K2 vein [and] 15.25m at 15.87g/t AuEq in the J1 vein," he said.
BMO Capital Markets analyst Andrew Mikitchook said the 91% increase at the Kora deposit is likely in line with market expectations.
K92 traded on the Toronto Stock Exchange on February 23 at C$8.20/share, which was up 6%. The company has a market capitalisation of 1.82 billion.
