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Kin Mining adds 33,900 ounces from Helens to gold bounty at Leonora

A new resource estimate in the Helens area has lifted tonnage by 29%, grade by 49% and ounces by 92%.
Two men overlooking the Leonora Gold Project
Looking over the Leonora Gold Project in Western Australia

Kin Mining NL (ASX:KIN) has added 33,900 ounces to the indicated and inferred resource at Helens deposit within the Cardinia Mining Centre of Leonora Gold Project in Western Australia.

The updated estimate of 70,900 ounces includes a 29% increase in tonnage, a 49% increase in grade and a 92% increase in ounces.

It supports a larger open pit development at Helens, which is 2-kilometres from the Cardinia processing plant site.

READ: Kin Mining has strong gold results from Leonora, new resource estimate imminent

The resource was updated after all assay results were received from the phase I reverse circulation and diamond drilling program completed in late July.

Helens resource update and comparison with the previous model.

Phase I focused on testing the mineralised lodes to a depth of 150 metres below surface and advancing the geological and structural understanding of the area.

Infill drilling of near-surface mineralisation to a minimum drill density of 40 metres by 40 metres was also completed.

Indicated resources increase 14,000 ounces

A 14,000-ounce increase in the indicated resource classification is due to a 50% increase in grade to 2.18 g/t.

This is largely attributable to the geological domaining and the incorporation of new data.

Inferred resource up 225%

Inferred resource tonnage increased 127%, grade by 36% and gold ounces by 225% over the previous estimate.

This reflects the inclusion of the depth extension at Helens Main due to the success of recent drilling.

Previous work linked the reporting of resources for the Helens and Fiona deposits into a Greater Helens resource area.

 

Fiona has been excluded from recent work and the 24,000-ounce estimate is unchanged.

This represented 40% of the previous 61,000 ounces reported for Greater Helens.

During the phase I drilling program, Kin also targeted testing the potential to extend the deposit at depth into primary mineralisation within the fresh rock.

The diamond core component of the program proved invaluable at improving the geological and structural understanding on the controls of mineralisation.

Depth potential strengthened

Deeper drilling also confirms the mineralised system extends, in areas, to a depth greater than 250 metres and, therefore, clear potential exists to increase resources below the current 150-metre depth.

Plan view of the Leonora Gold Project.

A suite of core samples from the drilling separated into a number of metallurgical domains has been selected for test work.

READ: Kin Mining negotiates flexibility for credit facility with Sprott

This focuses on primary mineralisation to a depth of 150 metres with results expected in the December quarter.

Next steps

Kin also plans preliminary optimisation and pit design works to identify areas where additional drilling is warranted to reduce risk and improve the resource estimate quality in the Helens area.

This work will involve:

- Drilling to upgrade mineral resource classification;
- Systematic assessment of the lightly drilled Eastern Lodes; and
- Initial assessment of the deeper mineralisation in higher grade areas below the open pit with a view to potential underground mining.

Further Fiona work warranted

In addition, further assessment of the Fiona area deposits is also warranted and will be completed in the coming months.

Phase II drilling at Helens is scheduled to begin in the December 2018 quarter.

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