Kin Mining shares jump after 50pc increase in gold resource
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Shares in emerging gold play Kin Mining have jumped today on news of an almost 50 per cent increase in resource at its Leonora gold project which now contains over one million ounces of gold.
The stock was up 5 per cent at 34c in early trade.
Resources at the project located in Eastern Goldfields of Western Australia have shot up 42 per cent on the previous estimate to 22.3 million tonnes grading at 1.43 grams per tonne gold for 1.02 million ounces of gold. Of the total resource, 75 percent is in the indicated resource category with the remainder in the inferred category.
Speaking on the sidelines of the Mining 2017 Resources Convention in Brisbane, Kin Mining managing director Don Harper said the result gave Kin a clear pathway to project development, production and cashflow.
“The new resource estimate provides a strong foundation for the estimation of the maiden Ore Reserve at Leonora, which will form part of the Definitive Feasibility Study set for completion later this quarter,” Mr Harper said.
“There is also immense potential to continue growing our inventory within the Tier-1 Leonora district and we will pursue that upside in parallel with our project development plan.”
The increase in resource is mainly due to the 43,000m reverse circulation resource drilling program that has recently been completed, which extended mineralised domains at multiple deposits.
Recent primary gold discoveries at Lewis and Helens- Fiona have also been incorporated into the mineral resource.
In a further step towards production at Leonora, Kin has recently finalised a deal to acquire the Lawlers processing plant from Agnew Gold Mining Company. Kin will pay Gold Fields $2.5 million for the plant.
Kin Mining is an emerging gold development company with a significant tenement portfolio in the Eastern Goldfields of Western Australia.
The outcomes of the Pre-Feasibility Study at the project, released in December 2016, confirmed the potential for Kin to become a low-risk, high-margin gold producer.
First gold production is targeted for mid-2018.
Shares in Kin were last trading at 36c with a market cap of $54 million.
Mr Harper will be speaking today at Vertical Events’ Mining 2017 resources convention in Brisbane.