Assays have been received for a number of holes in the ongoing drilling program at Leonora designed to expand and upgrade the gold resources.
Any expansion or upgrade will be used in the current definitive feasibility study, which is on track for completion by mid-2017.
Drilling continues to reinforce potential for increase and upgrade in resources.
Don Harper, CEO, commented: “The presence of such wide zones of high-grade mineralisation, close to surface, shows that we have just really scratched the surface in terms of identifying potential extensions to the existing resource inventory at Leonora.”
Drill results details
Further wide high-grade results returned from in-fill and extensional drilling at the Mertondale 3-4 deposit within the Leonora gold project include:
- 37 metres at 3.0 g/t gold from 142 metres including 6 metres at 10.7 g/t gold;
- 40 metres at 1.5 g/t gold from 106 metres including 16 metres at 2.3 g/t gold;
- 18 metres at 3.0 g/t gold from 99 metres including 3 metres at 10.9 g/t gold;
- 29 metres at 1.5 g/t gold from 70 metres including 16 metres at 2.1 g/t gold;
- 15 metres at 1.9 g/t gold from 135 metres including 6 metres at 3.1 g/t gold; and
- 18 metres at 1.3 g/t gold from 26 metres.
The reverse circulation drilling results are from both from inside and outside the current pit design at Mertondale 3-4, reinforcing the potential both to increase and upgrade the existing resources.
The program at Mertondale is now almost completed with results from four holes pending.
The drill rig has now moved on to Cardinia (the Kyte Prospect), where shallow oxide drilling for an advance of 2,180 metres is planned over the deposit to upgrade the resource.
The latest drilling results continue to demonstrate substantial upside at the Leonora gold project.
The current drilling programs represent an integral part of the definitive feasibility study, which will allow Kin to deliver on its strategy of becoming a significant new Australian gold producer in 2018.
Having its own processing facility will put the company in the enviable position of being able to maximise value through further resource expansion and exploration success.
The cash-flow generated will allow Kin to undertake an aggressive near-mine exploration strategy to delineate further mill feed.
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 $0.18.