Otterburn Announces K92 Completes Purchase of Kainantu Mine from Barrick Gold Corp. and Files Initial Independent Technical Report and Resource Estimate
Otterburn Press Release | Junior Mining Network
Key Highlights —
- Purchase of Kainantu Mine from Barrick Gold Corp. completes
- K92 staffs up key positions and assumes full operational control of Kainantu Mine
- Initial NI 43-101 compliant resource estimate at Kora-Eutompi and Irumafimpa confirms:
- 240,000 oz. Au at 13.3 g/t Au eq. in the Indicated Category, and
- 1.84 M oz. at 11.6 g/t Au eq. in the Inferred Category
Otterburn Resources Corp. is pleased to announce that K92 Holdings International Limited has completed the purchase of Barrick Kainantu Limited from Barrick Gold Corporation. Otterburn, as previously disclosed, is purchasing 100 percent of the shares of K92 in a share exchange purchase agreement.
With the purchase of BKL now complete, K92 owns 100 percent of the Kainantu Mine Project located in Papua New Guinea, including Mining Lease 150, Mining Easements 80 and 81 and License for Mining Purposes 78, all granted for a period of 10 years by the applicable government authorities in accordance with PNG Mining Act 1992.
K92 currently has approximately 70 local staff onsite, most of whom were previously employed by Barrick, along with several North American, Australian and South African geologists and engineers who are currently focused on detailed mine planning and plant engineering studies. The number of staff will increase as the company moves from the current transitional stage to project ramp up. The fully developed infrastructure at the Kainantu project, in addition to the underground mine development, includes a mill processing facility, staff housing, a life of mine tailings pond and office space. The site has a dedicated power line from the nearby Yonki hydro electric energy facility and is accessible via a paved road.
On March 6th, Otterburn received an Independent Technical Report and Resource Estimate (“ITR”) for the Kainantu Mine Project. The report was authored by Anthony Woodward, BSC Hons., M.Sc., MAIG of Nolidan Mineral Consultants, located in Queensland, Australia.
Within the ITR, it is stated “Nolidan notes that Barrick originally purchased the Kainantu Project for the porphyry Cu-Au potential and internal reports rank the project very highly on a global scale. The decision to divest the project was made for corporate rationalisation reasons based on global competition for exploration expenditure rather than geological reasons.