Kin Mining Ltd (ASX:KIN) continues to progress an aggressive exploration program across key prospects at the Cardinia Gold Project (CGP) in Western Australia with ‘outstanding’ drilling results in the past quarter confirming the potential for multiple new discoveries.
Having started in March, phase-II drilling focused on the Cardinia Hill, Comedy King, Faye Marie, Helens East and Lewis East prospect areas before a new round of drilling began in June to follow-up key targets and test a range of new prospects.
This new program is underpinned by a $9.895 million non-renounceable entitlement offer, under which eligible Australian and New Zealand shareholders can subscribe for one new share for every seven shares held at an offer price of 11 cents a share.
The company also completed dismantling and relocating key components of the Lawlers processing plant, which will provide important optionality for the future development of the CGP.
Phases III drilling
The phase-III drilling program will comprise 45,000 metres of reverse circulation (RC), diamond (DD) and aircore (AC) drilling, designed to deliver a maiden mineral resource estimate for the Cardinia Hill target, as well as to provide an initial assessment of several compelling regional targets.
An initial 1,200-metre program of RC drilling commenced in late June at Cardinia Hill to expand along strike and test at depth where previous drilling has returned consistent high-grade, near-surface gold mineralisation.
AC drilling will be undertaken at the Helens East, Helens South, Triangle, East Lynne, Faye Marie and Black Chief targets.
Aircore drilling targets.
The RC and DD components of the Phase-III program are expected to be completed in October, with an updated mineral resource estimate for the CGP incorporating the March, June and September 2020 quarter drilling results.
Phase-II drilling results
The phase-II drilling program was completed during the March and June 2020 quarters, comprising 14,720 metres of AC and 4,992 metres of RC drilling across six key target areas.
These targets are prospective for gold-rich sulphide replacement and epithermal vein-hosted gold mineralisation.
Results from this program were reported during the June 2020 quarter.
Lawlers Processing Plant
During the quarter, Kin recovered all items from the Lawlers Processing Plant that it wished to recover for potential future use at the CGP.
The company acquired the Lawlers Processing Plant from Agnew Gold Mining Company Pty Ltd (Gold Fields) in June 2017 as part of its original development plan for the CGP.
Subsequently, key elements of the plant were utilised by Como Engineers as part of their detailed design of the Cardinia facility in the August 2019 pre-feasibility study.
Since then, Kin has been pursuing a highly successful exploration-focused strategy at the CGP aimed at making new discoveries and unlocking the broader potential of what it believes to be a large-scale gold system.
During the March 2020 quarter, Kin was able to carefully dismantle and relocate all the items of the Lawlers plant that form part of the CGP plant design before the COVID-19 restrictions required it to cease further work at the Gold Fields Limited (NYSE:GFI) owned site.
After discussions, it has been agreed that Kin will transfer title in the assets that remain at Lawlers back to Gold Fields in exchange for a full release from any further obligations to dismantle and remove the remaining assets.
During the quarter the company received confirmation from its largest shareholders of their intention to subscribe for their full entitlements in the offer, which included the opportunity to subscribe for 1 new share for every 7 shares at a price of 11 cents a share.
Collectively these shareholders hold around 39% of Kin’s shares currently on issue.
Funds raised will provide Kin with sufficient working capital to complete the next phase of systematic exploration work at the CGP and to follow up on the exciting new discoveries and targets identified as part of the target generation and successful drilling campaigns completed during the December 2019 and March 2020 quarters.