THE DRILL SERGEANT: Kin Mining (ASX: KIN) is set to commence resource evaluation, drilling and feasibility activities at the company’s newly-acquired Leonora gold project (LGP) in Western Australia.
The Leonora project is located 35 kilometres north-east of the mining centre of Leonora in the north-eastern Goldfields region of WA.
It comprises the Mertondale, Cardinia, Raeside and Gambier Lass project areas, which Kin considers to complement its current asset holdings in the area.
Kin has already embarked on technical studies aimed at taking the project’s existing Indicated and Inferred Resource base from JORC 2004 to JORC 2012 compliant status.
According to the company this work is well advanced and is expected to be completed by Q1 2015, which it believes will provide a sound base for the company to embark on a Feasibility Study.
Kin indicated it also intends to undertake a program of close-spaced resource definition drilling at the high-grade Tonto deposit, one of several deposits for which pit optimisation studies were completed by the project’s previous owner, Navigator Resources.
Kin has identified what it believes to be an early-stage production opportunity at Tonto and it intends to drill out the near-surface portion of this deposit following completion of the current drilling program at the Kingfisher nickel-copper prospect.
“The company was very pleased to announce completion of the LGP transaction, with the transfer of the assets giving it full ownership of one of the largest undeveloped gold projects in Western Australia,” Kin Mining managing director Trevor Dixon said in the company’s announcement to the Australian Securities Exchange.
“Kin now has a very large gold inventory totalling approximately one million ounces on its books, with optimisations completed on a several high-grade pits which represent near-term production opportunities.
“We are confident that we can convert a significant proportion of our very large gold inventory, firstly into JORC 2012 ounces and then into mineable ounces and reserves, allowing us to make the transition to gold producer in the near term.
“This is an exciting time for Kin Mining, with the transaction completed this allows us to move forward and execute our growth strategy.”