The company said that completing offtake agreement followed extensive negotiations with several potential offtakers and while the commercial terms remained confidential, K92 Mining was confident that they were competitive and provided for payment of gold, silver and copper contained in the concentrate.
Previously owned by Highlands Pacific and Barrick, K92 bought the Kainantu project in March last year and is in the process of recommissioning the mine, which has a total resource of 1.84 million ounces at 11.6 grams per tonne gold equivalent and an indicated resource of 240,000oz at 13.3gpt gold equivalent.
Water commissioning of the mill and flotation circuit has been completed as has the commissioning of the refurbished crushing plant.
The commissioning of mill and flotation circuit included the operation of the major equipment items in this section such as major pumps, float cell agitators, conditioners and compressors.
"The focus for the coming month will be on addressing punch list items in this area, commissioning of the process control system and associated instrumentation and the load commissioning of the ball mill," chief operating officer John Lewins said.
"Our mine restart program is progressing well. We have put together a very strong site-based management team which not only has extensive experience in the development and operation of gold deposits similar to Irumafimpa and Kora, but also has collective experience of in excess of 100 years in the PNG mining industry.
"The remedial work on our 800 portal and incline, the main entry and exit point for our Irumafimpa mine is well in hand with safe access to the upper working levels being achieved, ventilation re-established, and the mobile equipment necessary for the restart now on site or in transit," Lewins said.