Aircore drilling over recent weeks has been testing a 6km-long soil anomaly at East Lynne, and the early results indicate a significant shallow gold discovery associated with historical workings just 3km from the proposed Cardinia mill location.

 

Assays from the most recent drilling on 400m line spacing includes a hit of 5m at 35 grams per tonne from 40m to the end of the hole, with broad zones of sulphide mineralisation over at least a 3.2km strike length.

 

Other aircore results included 4m at 1.14gpt from 8m and 4m at 0.96gpt from 12m.

 

Kin's interpretation is that there is high-grade gold in the near-surface environment, above a broad zone of sulphide mineralisation that appeared to be responsible for a strong IP anomaly sitting above a major geological feature at East Lynne.

 

The company has also started diamond drilling and the first hole, in the northern part of the East Lynne, assayed 2m at 1.03gpt from 184m and 1m at 20.9gpt from 230m.

 

The diamond drilling rig is continuing to test the IP anomaly on 800m spacing.

 

RC drilling will begin as soon as the rig completes work at the Cardinia Hill discovery.

 

Managing director Andrew Munckton said the results were "remarkable", and East Lynne was shaping up as an extensive, semi-continuous zone of mineralisation spanning an area 100m wide and up to 3.2km long above a significant geological contact, with shallow oxide gold and an extensive sulphide mineralised feature at depth.

 

He said it could be an emerging greenfields discovery "of considerable scale and potential".

 

Kin is in the midst of a third phase of drilling at its flagship 945,000 ounce Cardinia gold project.

 

Kin shares were up 11% in early trade at A15c, just shy of its 52-week peak of 15.5c.