Kin Mining reports productive June quarter at Cardinia gold project

Kin Mining ASX Cardinia gold project mineral resource estimate Eagle Crow Mount Flora Bruno Lewis
Kin Mining expects to release a resource update in the current quarter.

The three-month period ending June was a productive one for Perth-based Kin Mining (ASX: KIN), with the delivery of an updated mineral resource estimate for its flagship Cardinia gold project in WA confirming the potential for a long-term mining operation.

The company managed a steady pace of exploration results and resource development activity at the project, underpinned by a $12.8 million capital raising in the previous quarter.

Cardinia’s estimate now sits at 30 million tonnes grading 1.28 grams per tonne gold for 1.23 million ounces of contained gold, with measured and indicated components increasing by 15% to 17Mt at 1.39g/t for 762,000oz.

Prospect assays

Cardinia Hill continues to emerge as a sizeable, high-grade deposit within the project, with assays during the quarter including 7m at 21.3g/t gold from 91m; 5m at 4.99g/t from 21m; 3.4m at 9.72g/t from 252.6m; and 8m at 4.02g/t from 19m.

Aircore drilling at the new Eagle-Crow prospect, on the western side of the project, also returned a series of strong 4m composite assays with highlights of 8m at 19.8g/t gold from 40m including 4m at 38.8g/t from 44m; 4m at 8.31g/t from 0m; 4m at 4.44g/t from 0m; and 8m at 7.90g/t from 28m to end-of-hole.

First-pass aircore work at the Mount Flora target, 20km east of the project, saw high-grade 4m composite assays such as 22m at 8.96g/t gold from 24m, including 8m at 21g/t from 32m; 8m at 2.47g/t from 16m; and 8m at 2.79g/t from 28m.

Strong assays also came from reverse circulation and diamond extension drilling at Bruno-Lewis including 16m at 1.22g/t Au from 51m; 6m at 2.86g/t from 15m and 3m at 6.60g/t from 57m; and 7.4m at 7.67g/t from 83m.

Kin has commenced work on the next resource update scheduled for the September quarter, which will include results generated from infill and extensional drilling at Cardinia Hill.

Pace of exploration

Managing director Andrew Munckton was pleased with the quarter’s progress.

“We have been able to maintain an impressive pace of exploration results and resource development activity during the quarter, notwithstanding the capacity constraints and personnel shortages being experienced across the sector,” he said.

“It’s been really pleasing to see two new areas emerge as early contenders for the next step-change in growth at Cardinia – Eagle-Crow has revealed early potential for an extensive, shallow gold discovery with striking early-stage similarities to Bruno-Lewis and Cardinia Hill [and] drilling results at Mount Flora are rapidly elevating that area to high-priority exploration status.”

Mr Munckton said an expanded regional exploration program would test a range of targets across the broader tenement holding and determine the potential for new discoveries and emerging satellite or standalone opportunities.

It will include follow-up drilling at Mount Flora and Eagle-Crow, as well as auger and geochemical programs across the Randwick and Murrin prospects and a maiden drilling program at the recently-identified Mount Fouracre nickel target.

Royalty acquisition

During the quarter, Kin reached agreement with Sprott Private Resource Lending to purchase the 1.5% net smelter royalty over the first 100,000oz of gold production from the Cardinia project.

The royalty formed part of a $36.2 million financing package provided by Sprott as part of the original development plan for Cardinia when it operated as the Leonora gold project in 2017.

Kin purchased the royalty for approximately $805,000 cash in June, equivalent to $0.22 in the dollar face value of the net smelter royalty and based on the spot gold price of A$2,467/oz.

The royalty remains on foot and has been assigned to a Kin entity and enhances the company’s options with regard to funding for Cardinia’s development.

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