Kin boosts Cardinia resources

WESTERN Australia-focused Kin Mining has delivered a boost in resources at its flagship Cardinia gold project near Leonora, and is promising more to come.
Kin boosts Cardinia resources Kin boosts Cardinia resources Kin boosts Cardinia resources Kin boosts Cardinia resources Kin boosts Cardinia resources

Cardinia at sunrise

Haydn Black

Reporter

Cardinia now boasts a total resource of 30 million tonnes grading 1.28 grams per tonnes at 1.23 million ounces, with measured and indicated resources increased by 15% to 762,000oz.
 
The project's most significant deposit remains Bruno-Lewis, which is now estimated to host 11.5 million tonnes grading 1.01gpt for 374,000oz, an increase of 63,000oz, while the recent infill drilling campaign as driven a 69% increase in measured and indicated resources at the deposit to 283,000oz.
 
Bruno-Lewis is expected to be the major source of ore that will eventually underpin a resumption of work on the company's plant development.
 
Kin also delivered an increase in resources at the Hobby deposit to 500,000t at 1.31gpt for 22,000oz, an additional 13,000oz.
 
The company, which last delivered a 22% boost to reserves to 1.15Moz in December, is promising a further resource boost next quarter, which could see growth at the higher-grade Cardinia Hill deposit, and potentially a maiden resource for the emerging Eagle-Crow discovery.
 
Today's resource assumes a A$2600/oz gold price, and uses the lower-off grade of 0.4gpt that Kin adopted late last year for its open pit plans. 
 
While Kin managing director Andrew Munckton has recently speculated about the significant growth potential at Cardinia based on some of the highest-grade intersections to date, he said today's 7% boost in ounces, and an increased confidence in in-ground resources, continued to support a more robust development than the one that was being pursued by the former board.
 
"The addition of 102,000 higher-quality ounces, together with improvements in average grade for the recently discovered south-western lodes at Bruno Lewis, is a real positive for the project - particularly as we see great potential for further growth at this cornerstone deposit," he said.
 
The company completed a $12.8 million raising last quarter at 13c, although it was seeking $15 million.
 
The cash was aimed at funding additional drilling, with the company increasingly confident Cardinia has the ingredients to emerge as a major gold camp, similar to others along the Keith-Kilkenny Shear Zone.
 
Kin shares were last traded at 12c, having moved between 8-24c over the past year.