Kin warns of 50% cost blow-out

KIN Mining has brought out the big artillery, releasing the final version of the Como Engineers’ fatal flaw analysis report after the preliminary version was leaked earlier this week, explaining it paused work on development at the Leonora gold project because of a risk of an overall 38-50% cost blow-out.

Kin warns of 50% cost blow-out Kin warns of 50% cost blow-out Kin warns of 50% cost blow-out Kin warns of 50% cost blow-out Kin warns of 50% cost blow-out

Work at Leonora has stopped.

Work completed by Kin and Como, and released to the market for the first time today, found no fatal flaws with the plan to own and build a plant capable of producing 50,000 ounces per annum, but warned of a 10-20% cost increase to Kin's revised internal estimate, pushing the approved budget of A$35 million to as much as $50 million.
 
With the report by Como also identifying 17 areas of engineering and metallurgical concern, and a "high risk of slippage from the current schedule" given a lack of engineering design and final approved design documents, the new Kin board took the decision to pause all work in April.
 
It had initially been concerned by budget overruns after just two months of site works, and re-running the numb...