Kin Mining returns ‘spectacular’ results at Mount Flora satellite prospect

Kin Mining’s (ASX: KIN) maiden drilling program at the under-explored Mount Flora prospect in Western Australia’s north-eastern goldfields has returned “spectacular” results – highlighting the potential for an emerging satellite discovery just 20km east of the company’s flagship Cardinia gold project.

The aircore campaign was conducted in April and comprised 269 holes for 10,166m, targeting several gold-in-soil anomalies identified in an auger sampling program last year.

Drilling intersected several significant zones of shallow, high-grade mineralisation and returned “outstanding” 4m composite assay results featuring a “spectacular intercept” of 22m at 8.96 grams per tonne gold from 24m, including 8m at 21g/t from 32m.

Other results were 8m at 2.79g/t gold from 28m; 8m at 2.47g/t gold from 16m; 13m at 0.97g/t gold from 20m; and 12m at 0.95g/t gold from surface.

The results have rapidly elevated Mount Flora to priority target status for Kin’s exploration team.

Field investigation of the mineralised intersections is now underway with the aim of defining the controlling features of the high-grade zones.

Kin’s aircore campaign was funded by a $12.8 million capital raising this year achieved through a $12 million share placement and $838,500 share purchase plan to institutional and retail investors.

Gold potential in satellite prospects

Managing director Andrew Munckton said the aircore results highlight the potential of satellite prospects within the company’s broader tenure to host high-grade gold mineralisation within economic haulage distance of the Cardinia project.

“Mount Flora formed part of our [initial public offering] but has had relatively little exploration attention to date given our focus on the main deposits at Cardinia,” he said.

“The area has barely been touched since limited [rotary air blast] drilling by Sons of Gwalia in the 1980s [and] given its location within haulage distance of our proposed [Cardinia] processing facility, we will be pushing hard to get more drilling in to this area.”

Mineralised trends

Results of the Mount Flora campaign have confirmed the presence of several mineralised trends, interpreted to be associated with splays originating from the regional Federation fault and other parallel structures.

Multi-element assays for bottom-of-hole samples used to characterise the mineralisation, alteration and rock types are currently pending at the laboratory.

Kin said initial results suggest the gold mineralisation is associated with anomalous silver, tellurium and tungsten in sulphide-rich vein structures.

Follow-up aircore drilling to extend existing drill lines as well as reverse circulation drilling to confirm mineralisation in fresh rock has been planned once all assays have been received.

Auger sampling program

Mount Flora was identified last year after a regional, wide-spaced auger sampling program revealed a number of north-northeast trending gold-in-soil anomalies.

Geological mapping of the area suggested the anomalies were related to a dominant northeast-oriented structural trend represented by the Federation, Sligo Creek and Lady Susan faults.

A number of historical workings are located along these faults, with gold mining in the area dating back to the 1890s.

In recent times, numerous alluvial gold nugget patches have been discovered by metal detecting prospectors within the tenement group.