THE BOURSE WHISPERER: Kin Mining (ASX: KIN) announced the completion of a Pre-Feasibility Study for the company’s 100 per cent-owned Cardinia gold project in the North-Eastern Goldfields of Western Australia.
Kin Mining claimed the 2019 PFS had confirmed the Cardinia project as being both technically sound and capable of generating solid free cash flows with healthy leverage to the Australian dollar gold price.
The PFS was based on two open pit mining centres at Cardinia and Mertondale which supply a 1.5 million tonnes per annum conventional CIL processing plant centrally located at Cardinia.
The PFS is based on an Ore Reserve Estimate of 7.9 million tonnes at 1.1 grams per tonne gold for 283,000 ounces and a Production Estimate of 11.4 million tonnes at 1.09g/t gold for 398,000 ounces, which delivers a forecast 368,000 ounces of recovered gold.
The Cardinia gold project contains Measured, Indicated and Inferred Mineral Resources of 18.2 million tonnes at 1.44g/t gold for 841,000 ounces of contained gold
“Over the past 12 months Kin has successfully reset the Cardinia Gold Project on a strong foundation of reliable technical and financial estimates which underpin the Pre-Feasibility Study,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.
“The outcomes show we have a project with production potential and significant leverage to the currently strong Australian dollar gold price, however the Board has determined to prioritise opportunities to add higher margin ore feed while development studies continue at an appropriate rate.
“Exploration completed by Kin and previous explorers at the CGP has focused on historic mining centres in areas of surface outcrop.
“Around 60 per cent of the tenement area is located under shallow, transported cover and has been subject to little modern exploration.
“A program of mapping, geochemical sampling and geophysics is under development to target new discoveries in these underexplored parts of proven mining corridors.
““The potential to enhance our mineral inventory through regional consolidation opportunities will also be evaluated given Kin’s location in the active Leonora region with processing infrastructure which has been purchased and partially developed.
“Other alternative strategic options may also be considered.”