Kin upbeat on gold project

Aspiring gold miner KIN Mining has released a definitive feasibility study on its Leonora project in the Goldfields, which has forecast a development cost of about $35 million.

Perth-based Kin plans to spend $35.4 million on development of the project, with the lion’s share of that to be used on upgrading and relocating the Lawlers processing plant, which it acquired from South African company Gold Fields earlier this year.

The 800,000 tonnes per annum plant is currently located about 160 kilometres north-west of the Leonora project.

Kin plans to upgrade and refurbish the facility to 1.5 million tonnes per annum through the installation of a refurbished 2.5 megawatt ball mill which it acquired from Macca-Interquip in August, along with six new carbon-in-leach tanks.

It also plans to move the processing facility closer to the Leonora project, at the Cardinia mining centre.

That process is expected to take 11 months, with commissioning and first gold targeted for the second-half of next year.

The DFS foreshadowed Leonora to have a seven-year mine life, at an all-in sustaining cost of $1,038 per ounce.

“The DFS has concluded that the Leonora gold project will enjoy low pre-production and operating costs which underpin a low-risk, high-margin gold operation with a short payback period and strong free cash flow,” Kin managing director Don Harper said.

“Kin is now on a clear pathway to cash flow and plans to be producing gold in the second half of 2018 in the heart of one of WA’s richest gold-mining districts.

“The company will continue to undertake an aggressive exploration strategy at Leonora seeking to expand resources by initially drilling recently discovered high grade primary gold targets.”

Kin shares closed 20.8 per cent higher to 29 cents each.