Kin Mining NL’s (ASX: KIN) exploration-driven growth strategy for its flagship 100%-owned Cardinia Gold Project, located near Leonora in Western Australia, is continuing to deliver strong results with the unveiling of an updated project-wide Mineral Resource Estimate (MRE).
The updated September 2022 MRE has seen overall contained ounces increase by 10% to 1.41 million ounces (34.5Mt at 1.27g/t Au), reflecting the success of the strategic drilling programs undertaken by the company over the past year, particularly within the under-explored Eastern Corridor.
The new drilling around the Rangoon deposit within the Eastern Corridor has added an additional 62koz of Mineral Resource. The MRE for all optimised resources was also extended into underground mining positions below the open pit optimisation shells. At a 2.0g/t cut-off grade, this has added an additional 22koz, increasing the previous MRE announced on 23 September 2021 by a total of 3.36Mt at 1.22g/t for an additional 132koz of gold.
The project wide MRE update includes reoptimised pit shells for all existing models using standardised parameters and software, a gold price of A$2,600 and 2019 Pre-Feasibility Study (PFS) for the CGP operating cost assumptions. All Open Pit Mineral Resource Estimates are reported within optimised shells using the same criteria for recovery and geotechnical parameters as established in the 2019 Pre-Feasibility Study (PFS) for the CGP.
Managing Director Andrew Munckton said the continued growth in the company’s resource base at Cardinia reflected the success of its strategic exploration approach while marking another important step towards unlocking the value of the Project by converting exploration potential into JORC Mineral Resources.
“Once again, we have delivered solid growth in the Cardinia Gold Project Resource, with the addition of high- quality ounces at good grade along the Eastern Corridor while continuing to consolidate and expand our resource positions along the Western Corridor.
“The latest MRE delivers a 10 per cent increase in overall contained ounces while also increasing the size of the higher quality Measured and Indicated categories and ensuring that the project-wide MRE is based on the latest gold price and operating cost assumptions.
“We are particularly pleased to have delivered a 95koz MRE for the recently discovered Rangoon deposit, where we announced strong drilling results over the past 12 months and see outstanding potential for further growth. The Eastern Corridor, where the Rangoon deposit is located, was the major focus of our exploration drilling efforts of the last 12 months and now boasts an impressive resource base totalling 7.2Mt at 1.47g/t for 338koz.
“For the first time, Underground Mineral Resources have been estimated for mineralisation above a 2.0g/t Au cut-off grade below the open pit optimisation shells which constrain the MRE at all the deposits. While relatively small at this stage, these deeper and higher-grade Mineral Resources are likely to grow as drilling advances at depth.
“In addition, the Measured and Indicated portion of the MRE continues to grow with the higher confidence portion now totalling 18.6Mt at 1.4g/t for 834koz.
“We also have a very strong pipeline of deposits that are yet to be estimated at the Mineral Resource level in the latest MRE, including the Helens East prospect in the Eastern Corridor and the Pegasus and Eagle-Crow prospects in the Western Corridor. Further programs of work are proposed for FY22/23 to advance these exciting prospects to the resource stage.”
