Kin Mining NL (ASX:KIN) has delivered a notable increase to more than 1.5 million ounces in an updated mineral resource estimate (MRE) for the Cardinia Gold Project in Western Australia.
The MRE update has delivered 37.7 million tonnes at 1.27 g/t gold for 1.54 million ounces of contained gold within optimised pit shells.
This represents an increase of 134,000 ounces, or 9.5%, in contained ounces from the previous MRE update published in September 2022.
Meanwhile, at Cardinia Eastern Corridor, a maiden MRE was completed for the Helens East deposit of 1.4 million tonnes at 1.57 g/t for 70,000 ounces of contained gold, consolidating part of the Fiona deposit.
Continued strong growth
Kin managing director Andrew Munckton said the continued strong growth in the company’s resource base reflected the success of its exploration approach at Cardinia, improving geological knowledge and the potential of the new Eastern Corridor area to deliver significantly higher grades within expanded and optimised pit shells.
“Once again, we have delivered solid growth in the Cardinia Gold Project mineral resource, with the addition of robust, high-quality ounces at increased grade from drilling programs across the Eastern Corridor,” he said
“The maiden estimate for the Helens East deposit, which sits in close proximity to the Helens deposit, and the confirmation of a resource between Helens and Rangoon – which now forms a single, semi-continuous deposit – reflects the view that the Eastern Corridor represents a significant untapped opportunity for further resource growth.”
MRE summary
The updated MRE includes an additional 5,993 metres of reverse circulation (RC) and 2,473 metres of diamond drilling completed since August 2022, incorporated into updated geological and mineralisation models for Rangoon, Helens, Helens East and Fiona.
This new drilling around the Helens East, Helens and Rangoon deposits within the Eastern Corridor has resulted in the June 2023 MRE growing beyond the previous MRE announced on September 17, 2022, by 134,000 ounces of gold.
All deposits within the MRE remain open both along strike and at depth with a discovery cost of A$25 per resource ounce.
Munckton adds: “The work program over the nine months since the last MRE update has delivered a 9.5% increase in overall contained ounces while also increasing the size of the higher quality measured and indicated categories by 4.3%, now totalling 19.5 million tonnes at 1.38 g/t for 873,000 ounces.
“The company takes a conservative view of mineral resource estimation by constraining the MRE within optimal pit shells generated using a A$2,600 gold price and applying reasonable operating cost assumptions.
“We are particularly pleased to have delivered a maiden 70,000-ounce MRE for the recently discovered Helens East deposit and a new estimate that joins the previously discrete Rangoon and Helens deposits, where we announced strong drilling results over the past 12 months and see the potential for further growth.”
Cardinia Eastern corridor
The maiden MRE at Cardinia Eastern Corridor joins the Helens and Rangoon deposits, incorporating 600 metres of new mineralised strike between previously discrete deposits.
It increased the MRE for the Helens and Rangoon deposits to 5.5 million tonnes at 1.37 g/t gold for 242,000 ounces of contained gold. An additional 72,000 ounces were estimated due to successful extensional drilling programs.
Munckton adds: “The Eastern Corridor, where a number of recent discoveries are located, was the major focus of our exploration drilling efforts over the past 12 months and now boasts an impressive resource base totalling 10.4 million tonnes at 1.42 g/t for 475,000 ounces of contained gold.
“This compares with the average resource grade for the Western deposits of around 1.0 g/t.
“The company has a very strong pipeline of exploration targets that are yet to be estimated at the mineral resource level, including extensions of existing deposits in the Eastern Corridor and newly identified prospects at other project areas.
“Further programs of work are proposed for FY24 to advance these exciting prospects to the resource stage.”