K2 has significant established infrastructure with an underground decline already in place. This has reduced the capital and time required for the development of the project.
K2 hosts a total resource of 847,000 tonnes at 4.0 grams of gold per tonne for 108.300 ounces*.
*This information was prepared and first disclosed under the 2004 JORC Code. It has not been updated to comply with the 2012 JORC Code on the basis that the information has not materially changed since it was last reported.
K2 is an exceptionally low risk proposition with the underground decline already in place having significantly reduced the capital required for the development of the project.
Top and below: K2 Boxcut.
Drilling programmes are on the drawing boards, and focussed on locating further high-grade resources that may be incorporated into the existing underground mine model.
To allow mining of the deposit, dewatering of the K2 pit and underground mine is necessary because the site holds approximately 267,000 kL of water.
Water will be pumped to the K1 pit, located 1.4km northeast of the boxcut. K1 has a storage capacity of approximately 1,640,000m3. This is adequate to store dewatering discharge, in combination with annual rainfall (taking into consideration a 1:1000 year, 72-hour rainfall event), with an 8-metre freeboard maintained, for the duration of the project.