The Kainantu property is located within the New Guinea Thrust Belt, close to its northern contact with the Finisterre Terrane.

The Kainantu area is underlain by rocks of the Early Miocene Bena Bena Formation, comprising pelite, psammite, conglomerate and marl beds metamorphosed to greenschist to amphibolite grade. These are unconformably overlain by Miocene age Omaura Formation consisting of volcano-lithic sandstones and siltstones and numerous fossiliferous limestone lenses. The overlying Yaveufa Formation consists of basaltic and andesitic flows, agglomerates, volcanoclastic sandstone and limestone (Tingey and Grainger, 1976). The mid-Miocene Akuna Intrusive Complex consists of multiple phases ranging from olivine gabbros, dolerites, hornblende gabbros and biotite diorites to granodiorites.

Gold-copper deposits within the SW Pacific Magmatic Arcs have been classified into three main groups by Corbett and Leach (Corbett and Leach, 1997):

- Porphyry-related (including gold skarn).
- High sulphidation gold-copper.
- Low sulphidation (including sediment-hosted replacement).

Telescoping may overprint the varying styles of low sulphidation gold mineralization upon each other or upon the source porphyry intrusion.

Hydrothermal porphyry-related activity in the Kainantu area may have been protracted and associated with more than one intrusive phase (17 Ma to younger than 7 Ma). According to Corbett (2009), while the accepted wisdom is that porphyry Cu-Au mineralization in the Kainantu region is related to Elandora style porphyry intrusions, the coincidence of prograde alteration (Kokofimpa area; K-feldspar alteration) with Akuna-style diorite intrusions suggests alteration and mineralization may have been initiated at an earlier Akuna age and continued to an association with Elandora intrusions.

Mineralization on the property includes gold, silver and copper occurring in epithermal Au telluride veins and Au Cu Ag sulphide veins of Intrusion Related Gold Copper (“IRGC”) affinity and also less explored porphyry Cu Au systems; and alluvial gold.

The Kora-Irumafimpa (including Eutompi and Kora North) vein deposit has been demonstrated from K92 Mining’s drilling results to be a continuous mineralised structure. The April 2020 Mineral Resource Estimate reported in Section 14 of this report has produced a Kora Consolidated Resource comprising the Kora, Kora North and Eutompi deposits. Mining is currently taking place at Kora North. In addition, there remains a Mineral Resource at Irumafimpa area that has had some modern mining activity (2007-2009). The deposit occurs in the centre of a large mineralized system approximately 5km x 5km in area that has been partly delineated by drilling and comprises several individual zones of vein and porphyry-style mineralization. Peripherally, exploration activities have also identified further areas of vein and porphyry-style mineralization.

The Irumafimpa-Kora vein system (comprising the Kora, Eutompi, Kora North and Irumafimpa prospects) is interpreted to contain two stages of mineralization (Corbett, 2009). The earliest is a sulphide-rich Cu-dominant stage. This is overprinted by a quartz-rich Au-dominant crustiform quartz vein to breccia system with high grade gold associated with tellurides (e.g. Calaverite AuTe).

K92ML made a strategic decision in early 2018 to cease mining activities at Irumafimpa and to devote its resources instead to development of and production from Kora North.

Mining operations focused on Kora’s K1 and K2 veins and Judd’s J1 vein, for a total of seven levels mined. On the K1 vein, development tonnes were mined on five levels and long hole stoping (modified AVOCA method) was mined from five sublevels (1150, 1170, 1205, 1225 and 1245 mRL level). On the K2 vein, development tonnes were mined from two sublevels and long hole stoping (modified AVOCA method) on the 1185 mRL level. J1 vein mining was from the 1235 mRL development. Importantly, Q4 2020 marked the third full quarter of long hole stoping, which commenced in March 2020 on the K1 vein. Long hole stoping has performed well for both the K1 and K2 vein with less dilution than expected from both veins in Q4 2020, particularly the K1 vein. The combination of additional levels developed through 2020 and strong performance from long hole stoping has provided a notable positive impact on operational flexibility.

Previously, the instability associated with the gouge led to wall exposures being limited to a maximum of 5m in height, and the use of cut and fill mining for K1 and also for KL. The cut and fill stopes have been extracted in 2.5m high lifts mined by air-leg, and then by mechanised drill jumbo.

In conjunction with on-going geotechnical assessments, K92ML successfully trialled longhole stoping in early 2020 and is transitioning to this method for K1 and KL. Specific measures to address the hangingwall gouge are critical to the success of longhole stoping of the zones where this structure is present.

Initially, K2 was mined by cut and fill for production assurance reasons. However, with ground conditions in K2 clearly suitable for longhole stoping, K2 is also transitioning to this method.

The crushing circuit consists of primary jaw crusher and secondary cone crusher following downstream milling circuit consisting of Ball mill and cyclone.

The Plant Expansion to 400,000 tpy throughput capacity has been successfully completed in June 2020.

Jaw crusher liner wear and capacity was optimized by converting existing pan feeder to grizzly finger feeder to bypass fines from jaw crusher.

A new larger secondary crusher (J35/TC1000 or equivalent) was installed, and the existing crusher was relegated to standby service.

The existing 150CVX cyclones was upgraded to a 6 x 250CVX cyclone pack to meet the higher feed rate and recirculating load. Mass balance and cyclone selection is based on a 400ktpa throughput (50tph).

The Kainantu processing plant is located approximately 7km from the opening of the 800 portal which accesses the Irumafimpa Mine. Simple processing technology was used to treat Irumafimpa ore. Following crushing, screening and grinding the sulphide bearing material was separated from the nonmineralized host rock by flotation. The gold bearing concentrate was packed in containers and trucked to Lae from where it was shipped to a smelter/refinery for the recovery of the gold.

The Process Plant consisted of the following unit processes:
- Ore Receiving and Crushing;
- Grinding and Classification;
- Differential Flotation;
- Flotation tailings deposition in the tailings storage facility;
- On-site reagent storage and mixing facilities;
- Services for plant air and water distribution.

Successful commissioning of the Stage 2 Plant Expansion to double throughput capacity to 400,000 tonnes per year and continued development of the twin ........