Kin Mining NL (ASX:KIN) says its exploration-driven growth strategy for the flagship 100%-owned Cardinia Gold Project, near Leonora in Western Australia, is working out well – and it has an updated project-wide mineral resource estimate (MRE) to prove it.
10% increase
The updated MRE sits at 34.5 million tonnes at 1.27 g/t gold for 1.41 million ounces of contained gold, representing an increase of 132,000 ounces, or 10%, in contained ounces from the last update published in September 2021.
Kin says the increase reflects the success of the strategic drilling programs undertaken over the past year, particularly within the under-explored Eastern Corridor.
New drilling around the Rangoon deposit within the Eastern Corridor has added 62,000 ounces to the updated resource with Rangoon now hosting 94,000 ounces.
The MRE for all optimised resources was also extended into underground mining positions below the open pit optimisation shells. At a 2.0 g/t cut-off grade, this has added an additional 22,000 ounces.
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 a 2019 pre-feasibility study (PFS) for the CGP operating cost assumptions.
Strategic exploration approach
Kin Mining managing director Andrew Munckton said the continued growth in the company’s resource base at Cardinia reflected the success of its strategic exploration approach, marking another important step towards unlocking the value of the project by converting exploration potential into JORC-compliant 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,” he said.
“The latest MRE delivers a 10% 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 95,000-ounce 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 7.2 million ounces at 1.47 g/t for 338,000 ounces.
“For the first time, underground mineral resources have been estimated for mineralisation above a 2.0 g/t gold 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 18.6 million tonnes at 1.4 g/t for 834,000 ounces.”
“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.”