THE DRILL SERGEANT: Kin Mining (ASX: KIN) has completed an update of the Mineral Resource Estimates for the company’s Cardinia gold project in Western Australia.
Kin Ming said that all 16 deposits within the project have been reviewed.
Mineral Resources for six deposits have been remodelled, estimated, optimised and reported (Mertons Reward, Mertondale 3-4, Bruno, Lewis, Kyte and Helens).
An additional six Mineral Resources have been re-optimised and reported (Tonto, Mertondale 5, Fiona, Rangoon, Michelangelo and Leonardo).
The remaining four deposits remain unchanged (Eclipse, Quicksilver, Forgotten Four and Krang).
The updated Mineral Resource Estimate for the Cardinia gold project is 17.2 million tonnes of gold mineralisation at a grade of 1.41 grams per tonne gold for 782,000 ounces.
Kin Mining explained the main drivers of the change, compared to the previous estimate of 22.5 million tonnes at a grade of 1.46g/t gold for 1.05 million ounces, are the lower gold price assumption of $2,000 per ounce (previously $2,200 per ounce), updated optimisation parameters including revised open pit wall angles, testwork derived metallurgical recoveries and updated 2019 mining and processing costs.
New geological interpretations have also provided new resource models for the four key deposits of Lewis (incorporating Bruno), Helens, Kyte and Mertondale East (Mertons Reward and Mertondale 3-4).
“The updated Mineral Resource Estimate for the Cardinia gold project provides Kin with a solid foundation to now deliver an updated Ore Reserve Estimate as part of the upcoming PFS to be released later in the current June quarter,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.
“By adopting a more conservative approach across a number of key parameters, including the assumed gold price, the updated resource models can be used to determine the optimal development pathway for the project where risk and reward can be quantified when the modifying factors for the Ore Reserve Estimate are selected.”