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Kin Mining reveals exploration upside at Cardinia Gold Project in WA

Following the completion of the pre-feasibility study, Kin has commenced the evaluation of exploration opportunities across the 45-kilometre strike of the CGP area.

Kin Mining NL - Kin Mining reveals exploration upside at the Cardinia Gold Project, WA
At the end of the March quarter 2020, Kin had $2.849 million cash on hand

Kin Mining NL (ASX:KIN) embarked on the first phase of an expanded exploration program at its flagship 100%-owned Cardinia Gold Project (CGP) in Western Australia during the March quarter.

The program is designed to build on the recent updated global mineral resource estimate for the project which totals 21 million tonnes at 1.40 g/t for 945,000 ounces of contained gold.

Exploration success across multiple new target areas at CGP is beginning to reveal exploration upside.

In December 2019, a program of 7,881 metres of aircore (AC) and 880 metres of reverse circulation (RC) drilling was completed.

Results received in the March 2020 quarter confirmed near-surface high-grade mineralisation at Comedy King prospect, while also delivering promising results from Snowden Well, Lewis East and Lewis West.

Comedy King

Four lines of AC drilling for 4,144 metres was conducted at Comedy King.

New zones of shallow, high-grade mineralisation identified include:

  • 12 metres at 14.9 g/t from 4 metres, including 8 metres at 21.9 g/t from 8 metres,
  • 4 metres at 8.3 g/t from 20 m to end of hole,
  • 8 metres at 3.0 g/t from 8 metres,
  • 20 metres at 2.3 g/t from surface, and
  • 12 metres at 2.7 g/t from 4 metres.

The company is confident the results are associated with a proven fertile shear zone centred on the Lewis Fault and indicate a large mineralised system at Comedy King.

Lewis East

The AC drilling at Lewis East consisted of 47 holes with results of:

  • 4 metres at 11.6 g/t from 8 metres,
  • 53 metres at 1.27 g/t from 4 metres to bottom of hole,
  • 13 metres at 1.03 g/t from 24 metres to bottom of hole,
  • 32 metres at 1.1 g/t from surface, and  
  • 16 metres at 1.3 g/t from 8 metres.

Considering the results, historical drilling has been re-interpreted into a number of northeast dipping lode structures similar to those encountered at Bruno, Lewis and Comedy King.

Lewis West

Two lines of AC drilling totalling 43 holes for 641 metres was completed at Lewis West.

Results include:

  • 16 metres at 0.38 g/t from 0 metres,
  • 16 metres at 0.35 g/t from 0 metres,
  • 16 metres at 0.30 g/t from 0 metres,
  • 12 metres at 0.31 g/t from 0 metres, and
  • 4 metres at 0.93 g/t from 8 metres to bottom of hole.

Location of the target areas for the Cardinia Regional drilling program

Cardinia Hill

The Cardinia Hill prospect featured a single line of historical drilling with attractive grades, including 7 metres at 6 g/t associated with sheared, sulphide-rich sediments and cherts.

A total of 24 AC holes were completed in December, with significant results including:

  • 24 metres at 1.64 g/t from 32 metres to bottom of hole,
  • 24 metres at 1.34 g/t from 8 metres, and
  • 12 metres at 1.31 g/t from 24 metres to bottom of hole.

Further AC drilling is planned to test the extent of the mineralisation along strike and RC drilling will be utilised to test the depth potential below 50 metres.

Snowden Well

A total of 13 RC holes for 880 metres were drilled along four separate sections at Snowden Well with results of:

  • 1-metre at 3.93 g/t from 38 metres,
  • 3 metres at 1.15 g/t from 34 metres, and
  • 3 metres at 1.70 g/t from 39 metres.

Capital raising

During the quarter, the company completed a strongly supported share placement to raise $2.64 million by issuing 58.667 million shares.

The placement was completed at 45 cents per share - a 9.8% premium to Kin’s last traded price.

This capital raising received strong support from Kin’s four major shareholders, Delphi Unternehmensberatung AG (Delphi), Harmanis Holdings, Mostia Dion and the Canci Group.

Kin will also issue a further 16 million shares to Delphi to fund the Phase II exploration program.

Around $1.94 million of the funds raised will be directed towards the accelerated Phase II drilling program underway at the CGP, with the remaining $700,000 reserved for general working capital.

COVID-19

The current AC and RC drilling program is planned to continue through April 2020 to completion.

During this program and assessment of its results, Kin will continually evaluate the operating environment and any restrictions in place due to the COVID-19 pandemic before determining the next steps in the exploration program at the CGP.

Next steps

The Phase II drilling program will follow-up the successful results delivered from the December 2019 exploration program.

Aircore drilling has recommenced at Cardinia Hill, after which a comprehensive step out program is planned at Comedy King and Lewis East for up to 22,000 metres of AC drilling.

A program of up to 5,000 metres of RC drilling commenced in late March to follow up results at Cardinia Hill, Comedy King, Lewis East and Black Chief.

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