Kin Mining NL (ASX: KIN) has provided an update of the Mineral Resource Estimates for the Cardinia Gold Project (CGP) near Leonora.
The company said that the Revised Mineral Resource Estimate was completed for the six key deposits at the CGP encompassing all work and drilling completed to date; while an additional six deposits were re-optimised using new parameters including gold price.
The updated MRE for the CGP is now 17.2 million tonnes of gold mineralisation at a grade of 1.41 g/t Au for 782,000 ounces. KIN reported that the drilling highlights potential for resource growth.
The company said that the CGP MRE optimisations were based on the lower gold price assumption, updated optimization parameters, and mining and processing cost estimations.
Kin Mining said that the CGP Mineral Resource Estimate underpins upcoming CGP Ore Reserve and PFS.
Cardinia Gold Project
Cardinia gold project (CGP) represents the greater portion of the wider Leonora Gold Project located in the Mt Margaret Mineral Field in the centre of the Eastern Goldfields, Province of West Australia. Cardinia is separated into the Bruno-Lewis system (which includes Kyte), and the Helens system (which includes Fiona and Rangoon). There are a total of 16 deposits within the CGP.
Bruno-Lewis, Helens, and Kyte have been through a process of complete re-interpretation and re-estimation by Kin’s geology team, aided with a large amount of new data, including extensive new drilling campaigns, historical diamond drill core and RC relogging, new mapping and metallurgical testwork.
Updated MRE Now Lower Than Previous Estimate
The company has announced the updated Mineral Resource Estimate (MRE) for the CGP as 17.2 million tonnes of gold mineralisation at a grade of 1.41 g/t Au for 782,000 ounces. This is lower than the previous estimate of 22.5 million tonnes at a grade of 1.46 g/t Au for 1.05 million ounces.
KIN said that Mineral Resources for six deposits, Mertons Reward, Mertondale 3-4, Bruno, Lewis, Kyte, and Helens were remodeled, estimated, optimised and reported. An additional six Mineral Resources Tonto, Mertondale 5, Fiona, Rangoon, Michelangelo and Leonardo, were reoptimised and reported. Meanwhile, the remaining four deposits Eclipse, Quicksilver, Forgotten Four and Krang, remained unchanged.
Main Drivers of the Change
The difference in the resource estimate was mainly attributed to the lower gold price assumption of A$2,000 per ounce (previously A$2,200 per ounce); updated optimisation parameters including revised open pit wall angles, testwork derived metallurgical recoveries; and updated 2019 mining and processing costs.
MRE A Solid Foundation
KIN said that the CGP MRE provides a solid foundation for an updated CGP Ore Reserve estimate due for completion in May and ahead of the Pre-Feasibility Study in late June.
Resource Growth Potential
KIN reported that the additional data inputs have resulted in a significant improvement in the robustness and quality of the Mineral Resource estimate.
The company said that the additional drilling across Bruno, Lewis, Helens, Kyte and Mertondale deposits has resulted in revised geological interpretation and identified opportunities for extensions with further drilling.
KIN noted that the Mineral Resource estimated ounces have increased at Bruno, Lewis, and Helens where the most work has been carried out during 2018 and 2019 to date.
Kin Managing Director Andrew Munckton said: “The updated Mineral Resource Estimate for the Cardinia Gold Project provides Kin with a solid foundation to now deliver an updated Ore Reserve Estimate as part of the upcoming PFS to be released later in the current June quarter.”
By adopting a more conservative approach across a number of key parameters, including the assumed gold price, the updated resource models can be used to determine the optimal development pathway for the project where risk and reward can be quantified when the modifying factors for the Ore Reserve Estimate are selected.”
