The company remains focused on determining the most profitable and rapid path to gold production, targeted in Q3 of CY2018.
The Leonora gold project, which his 30 kilometres from the mining town of Leonora currently has a JORC resource of 721,000 ounces of gold.
Don Harper, CEO, commented: “The DFS is progressing well with resource conversion drilling and project permitting underway.”
“The opportunity to secure a second-hand processing plant may deliver significant benefits by potentially reducing upfront capital costs and providing the opportunity to start gold production sooner than anticipated.”
Recent highlights and updates from Leonora include:
- The completion of infill and extensional drilling programs at the Mertons Reward and Mertondale 3-4 deposits;
- Drilling now underway targeting the shallow oxide resources contained in the mine plan at Cardinia;
- Como Engineers have been appointed to complete a study on the suitability of the Lawlers Processing Plant, including capital and operating cost estimates;
- IMO Consulting have been appointed to complete metallurgical testwork;
- Environmental surveys and studies well advanced; and
- Project permitting and approvals process underway.
Kin is an emerging gold development company with a significant tenement portfolio in the Eastern Goldfields of Western Australia.
Kin recently updated its pre-feasibility study showing Leonora to be a high margin operation.
A low forecast required capital of $35 million underpins robust project economics, which sees an initial 6 year life-of-mine generating $105 million in operating cash flow.
A feasibility study is to be completed by mid-2017 with first gold production targeted for mid-2018.
Kin continues to deliver on its milestones as it pushes towards a definitive feasibility study in mid-2017 and production in mid-2018.
The timeline to gold production is as follows:
- Scoping study (complete Q2 CY16);
- Lewis trial gold mine (complete Q3 CY16);
- Pre-feasibility study (completed Q4 CY16);
- Lawlers plant study (in progress, Q1 CY16);
- Resource drilling (in progress, Q1 CY16);
- Definitive feasibility study (in progress, Q2 CY16);
- Project funding (Q2 CY16);
- New plant construction (Q2 CY18); and
- Gold production (Q3 CY18).
Kin shares have more than doubled over the past 12 months, currently trading at $0.185.