THE BOURSE WHISPERER: Kin Mining (ASX: KIN) announced the first gold from the company’s 100 per cent-owned Leonora gold project (LGP) in the Eastern Goldfields of Western Australia.
The company described the pour as a production milestone, which it explained was part of a trial mining program at the Lewis deposit, located within the 193,000 ounce Cardinia oxide resource camp at the LGP.
Kin has completed two gold pours to date at the Lakewood toll milling facility in Kalgoorlie from approximately 15,000 tonne of ore that was mined, trucked, and toll milled in Kalgoorlie.
A third and final pour is expected this week.
“This achievement not only demonstrates the company’s ability to take a trial project from design, permitting, mine development, through to the production of bullion but also further de-risked the LGP,” Kin Mining executive director Trevor Dixon said in the company’s announcement to the Australian Securities Exchange.
“This is a major step forward on Kin’s path to commercial production.
“Albeit a smaller scale, the principles remain the same in terms of the future development of the LGP.”
Kin explained its aim is for the Cardinia oxide resource to provide the base load mill feed for a proposed standalone, centrally located, processing plant.
The company’s overall objectives of the Lewis trial mining project in terms of the updated PFS at the LGP include visual observation of the structural controls on the mineralisation within the open pit and to determine realistic modifying parameters to apply to move from resource to reserve.
The trial will also assess optimal geotechnical parameters and reagent consumption rates while enabling the company to gain understanding of soft oxide materials handling through the mill.
Once all reconciliations, gold in circuit (GIC), and Perth Mint outturns have been received, Kin said it will then announce the results of the Lewis trial mining project.
Kin expects to complete a project evaluation and mine-to-mill reconciliation by mid-September 2016.