THE BOURSE WHISPERER: Kin Mining (ASX: KIN) announced another crucial step towards development of the company’s 100 per cent-owned Leonora gold project (LGP) in Western Australia.
Kin Mining has secured an option to purchase a used 2.5 megawatt (MW) ANI-Ruwolt ball mill from Macca-Interquip.
The company considers the acquisition of such a key long-lead item to boost upfront mill throughput and reduce life-of-mine CAPEX.
Kin Mining said the installation of a 2.5MW ball mill at the LGP will provide single-stage primary grinding of the Cardinia ores at an annualised throughput rate of 1.2 million tonnes per annum.
As the project transitions to mining of the harder primary ores, mill throughput will be maintained with the inclusion of the Lawlers 600 kilowatt ball mill the company recently acquired as part of the Lawlers plant purchase from Gold Fields.
Kin pointed out that the purchase of an equivalent new 2.5MW ball mill would cost an estimated $4.5 million with spares and take up to 40 weeks from order to delivery.
However, the total cost of the 2.5MW ANI- Ruwolt ball mill, fully refurbished is expected to be approximately $0.9 million and will take an estimated 12 weeks to be ready for installation.
Kin explained the 2.5MW ball mill provides both certainty of throughput and grind size to maximise metallurgical recovery at the LGP
The LGP Pre-Feasibility Study (PFS), completed last year, proposed a new 750,000 tonnes per annum processing plant for the first two years followed by an upgrade to 1.2 million tonnes per annum for an additional estimated capital cost of $16 million.
“This larger ball mill is a key long lead and expensive item for any project,” Kin Mining managing director Don Harper said in the company’s announcement to the Australian Securities Exchange.
“We have secured this critical piece of equipment in very good condition along with critical spares.
“Importantly we have provided certainty of grinding power to the operation and increased initial mill throughput.
“The purchase of the 800,000 tonnes per annum Lawlers plant and the opportunity to secure the used 2.5 megawatt ball mill allows Kin the ability to achieve our construction schedule of approximately nine months from project funding.
“We also now expect to see a reduction in Life-of-Mine capital cost in comparison to the 2016 PFS.”