Kin Mining pursuing additional higher grade deposits via consolidation and other strategic growth options

Kin Mining (ASX:KIN) is evaluating exploration opportunities across its tenement package in conjunction with other consolidation, growth, and strategic options in Western Australia. 

Speaking to Mining.com.au on the sidelines of the Resources Rising Stars conference on the Gold Coast yesterday (17 May), Kin Managing Director Andrew Munckton says the company is pursuing additional higher-grade deposits. 

It is actively looking to build its mineral resources and seeking opportunities to develop those deposits through value-adding processing opportunities. 

“There’s a large consolidation going on in the Leonora region as we speak, so we will be one of 3 players if the consolidation continues on. And we have good relations with the other players in the region, and we’re hoping to get access to a couple of the processing plants in the region. I think that’ll be a reasonable catalyst sometime probably in the second half of this year.”

“… We have good relations with the other players in the region, and we’re hoping to get access to a couple of the processing plants in the region”

The MD says while the company will not necessarily execute a corporate acquisition, it will assess projects and other targets relating to infrastructure.

Kin will engage Perth-based advisory firm Argonaut to assist with its strategy — a firm the MD says the company has had a long-term relationship with.

As reported in the March 2023 quarter, Kin is expecting to release the new Mineral Resource Estimate (MRE) for its 100% owned, 1.41 million-ounce Cardinia Gold Project (CGP) in the heart of the Leonora district in Western Australia by the end of June this year, Munckton tells this news service.

We’re integrating 12 months’ worth of drilling into the new MRE, and we expect to get from 1.4 million ounces to somewhere between 1.5 and 2 million ounces”

“We’re an advanced explorer so we have a pretty good understanding of what to expect out of a drilling program. We’re integrating 12 months’ worth of drilling into the new MRE, and we expect to get from 1.4 million ounces to somewhere between 1.5 and 2 million ounces.”

Kin wholly owns a large 777km-square landholding across the under-explored Minerie Greenstone Belt — part of a region that has yielded multiple gold deposits in recent decades. The CGP area encompasses a more-than-45km strike of the Minerie Formation, which contains large alteration systems associated with several significant gold deposits. 

In addition, the company has 2 joint venture arrangements, including an earn-in JV covering 120km-square with Golden Mile (ASX:G88), where Kin is earning an initial 60% over 3 years starting in 1Q 2022. It also has the Desdemona North JV, where Yilgarn Exploration Ventures (jointly owned by SensOre (ASX:S3N) and Gold Road (ASX:GOR)) is earning 75% over 4.5 years, with the JV commencing in Q1 2020.

The company is pursuing a two-pronged approach to unlocking the value of the CGP, comprising a wide-ranging, multi-disciplinary exploration effort in parallel with a near-term mining options study. 

The JV ownership arrangements are designed to consolidate the area surrounding the CGP and reduce the company’s expenditure requirements on outlying projects while engaging with successful exploration groups and regional neighbours.

Against the backdrop of improving sentiment in the gold sector and a rising gold price, Kin Mining says it has continued its strategy of testing new geological concepts within its flagship Cardinia Gold Project during the March quarter, with a specific focus on unlocking the emerging high-grade potential it has identified along the Eastern Corridor. 

The company claims recent drilling has provided ‘convincing evidence’ of an exciting exploration opportunity based on a high-grade lode style of mineralisation at Cardinia. Kin says this style of mineralisation has the potential to add high-grade ounces to its inventory.

Images: Kin Mining NL
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.