Mining

Kin Mining receives more ‘strong’ assays from Mount Flora prospect

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By Lorna Nicholas - 
Kin Mining ASX assays Mount Flora prospect drilling Western Australia

Mount Flora is only 20km from Kin Mining’s flagship 1.23Moz Cardinia gold project in Western Australia.

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The potential of Kin Mining’s (ASX: KIN) Mount Flora prospect is mounting after the company received more “strong” assays from a recent shallow aircore drilling program.

Kin has received results from final 4m composite assays generated from the first pass aircore program at Mount Flora, which is 20km east of its flagship Cardinia project near Leonora in Western Australia.

Highlight assays were 8m at 1.04 grams per tonne gold from 24m, 8m at 0.8g/t gold from 16m, 4m at 1.17g/t gold from 48m, and 4m at 1.1g/t gold from 48m.

These final results build on those reported last week, which generated what Kin managing director Andrew Munckton described as an “exceptional” intercept of 22m at 8.96g/t gold.

Mr Munckton said the company was “encouraged” by further strong results from the first round of wide-spaced shallow aircore drilling at the prospect.

He said the company had dispatched a field team to follow up exploration in the area where the “exceptional” 22m at 8.96g/t gold intercept was returned.

“They have identified a number of northeast trending quartz veins, which appear to be the primary control on the mineralisation.”

“This area will be a priority focus for initial reverse circulation drilling, which we plan to start as soon as program of works approvals are received and the rig becomes available from the phase four drill program at Cardinia,” Mr Munckton added.

Cardinia gold project

Earlier this week, Kin agreed to purchase the 1.5% net smelter royalty over the first 100,000oz of gold produced from Cardinia.

The company secured the NSR for US$600,000 (A$772,700) from Sprott Private Resource Lending with the NSR previously instated as part of a US$27 million (A$35 million) financing agreement in 2017 under the original development plan for the project.

Mr Munckton said the NSR purchase price was a “good result” with the gold near all-time highs.

He added it also increased the project’s economics by boosting Kin’s margin on the first 100,000oz of gold produced.

Cardinia has a current resource of 30Mt at 1.28g/t gold for 1.23Moz.