K92 Mining Inc. reported strong production results for the second quarter of 2026 from its Kainantu Gold Mine in Papua New Guinea, achieving 46,093 ounces of gold equivalent (AuEq). This includes 42,931 oz of gold, 1,780,506 lbs of copper, and 50,109 oz of silver. Quarterly sales reached 46,682 oz gold, 1,811,181 lbs copper, and 49,004 oz silver. The company reaffirmed its annual production guidance of 190,000 to 225,000 oz AuEq, with expectations of stronger output in the second half of the year driven by progressive ramp-up from two new mining fronts and completion of key expansion projects.
Record Quarterly Ore Processed and Development
A record 225,965 tonnes of ore were processed in Q2, a 73% increase from Q2 2025 and a 59% increase from Q1 2026. The head grade averaged 6.7 g/t AuEq (6.2 g/t gold, 0.4% copper, 8.9 g/t silver), with a moderate positive gold grade reconciliation compared to the latest independent mineral resource estimate (effective September 12, 2023 for Kora and Judd). Metallurgical recoveries were strong at 93.8% for gold and 93.2% for copper, exceeding the Updated DFS recovery parameter for gold (92.6%) for the ninth consecutive quarter. The new 1.2 million tonnes-per-annum Stage 3 Expansion Process Plant has performed well since commissioning in December 2025.
Record quarterly mine development of 3,326 metres was achieved, a 35% increase from Q2 2025 and an 11% increase from Q1 2026. A new monthly development record of 1,150 metres was set in May 2026. Lateral development rates continue to exceed the Stage 3 Expansion requirement of 1,000 metres per month, even with jumbo resources partially allocated to key underground projects. Further improvements are expected following the completion of the Underground Paste Plant excavations in June, the delivery of the second material pass in June, and the Phase 4 Primary Ventilation Upgrade scheduled for the second half of Q3.
Record Material Mined and Mining Fronts Progress
Record quarterly total material mined (ore plus waste) of 426,012 tonnes was driven by the introduction and progressive ramp-up of the second mining front during the quarter, as well as benefits from key Stage 3 Expansion infrastructure projects, including the second material pass system in June, the internal ramp in Q1, and the Puma Ventilation Drive in Q1. Further improvements are expected after the Phase 4 Primary Ventilation Upgrade enables one-way traffic flow in the Twin Inclines and the completion of haul road and river crossing upgrades in mid-Q3, allowing 60-tonne surface trucks to haul from underground to the process plant (currently 20-tonne payload).
Record quarterly ore mined of 228,254 tonnes involved activity across 15 levels at Kora and Judd. Long hole open stoping performed to design. First stope ore from the second mining front (Lower Kora) was delivered in April 2026, with production progressively ramping up. First stope ore from the third mining front (Twin Incline) is expected in Q3, initially from Judd, with operations expected to ramp up to four mining fronts in 2027.
Stage 3 Expansion: 98% Complete and on Budget
As of June 30, 2026, 98% of Stage 3 Expansion growth capital has been spent or committed and remains on budget. Significant progress was made on pastefill infrastructure: at the Surface Tailings Filtration Plant, wet commissioning is well advanced with performance testing expected this quarter; at the Surface Paste Binder Blending Area and Filter Cake Storage Facility, civil and concrete works are complete, with commissioning expected in Q3 2026. At the Underground Paste Plant, construction activities are advancing rapidly, with concrete works in the Silo Chamber complete and binder mixers and screw conveyors installed. Practical completion and commissioning of the pastefill circuit remain on schedule for Q4 2026.
Key underground construction projects completed or nearing completion include: the Second Material Pass (5 m diameter, ~200 m long) operational in June 2026, providing dedicated ore and waste passes; the Phase 2 Power Station Expansion to 15.3 MW (from 10.7 MW) completed and fully operational in May 2026, meeting Stage 4 Expansion power requirements; and the Phase 4 Expansion Primary Ventilation Upgrade, with HV electrical works progressing and electrification scheduled for completion in the second half of Q3 2026, nearly doubling primary mine airflow capacity to approximately 600 m³/s.
The load and haulage fleet is expanding, with four new Sandvik 517i underground loaders added in 2026 (net increase of two after replacing high-hour units). Six new 60-tonne surface trucks are scheduled to arrive in Q3 and be operational in late Q3, with two more by year-end. Two new Sandvik 45-tonne underground trucks are scheduled for Q4. Surface haul road and river crossing projects advanced, with the Baupa Bridge completed in April 2026, Kokomo Bridge deck construction well advanced, and Kasese river crossing culvert concrete works completed. These projects will triple surface haulage payload from 20 to 60 tonnes and reduce cycle times, supporting Stage 3 and Stage 4 Expansion throughput requirements.
CEO Commentary
John Lewins, K92 Chief Executive Officer and Director, stated: “Q2 marked another strong quarter for K92, with production of 46,093 ounces gold equivalent and multiple record mine physicals achieved, including record quarterly lateral development, ore tonnes mined, total material mined and ore tonnes processed. Importantly, the quarter demonstrated continued positive momentum in the underground mining ramp-up, with the second mining front, Lower Kora, delivering first stope ore in April and progressively ramping over the remainder of the year. These results highlight the increasing benefits of our recent investments in underground infrastructure, mobile equipment and the continued delivery of operational excellence initiatives.”
Lewins added: “Looking ahead, Q3 is expected to represent another important step forward for the operation with multiple key infrastructure projects scheduled for completion, including the Phase 4 Primary Ventilation Upgrade, haul road and river crossing upgrades, and the continued ramp-up of additional mining fronts. These projects are expected to further increase material movement capacity, improve operating flexibility and support higher production rates in the second half of the year. With the Stage 3 Expansion Process Plant continuing to perform well, the second material pass now operational, and additional enabling infrastructure nearing completion, we remain well positioned to deliver a stronger second half and achieve our full-year production guidance.”
