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Kin Mining hits grades up to 24.7 g/t gold at Leonora

Kin Mining has struck high-grade gold at a historically mined area of its Leonora project in Western Australia, encouragingly indicating that mineralisation at the site extends beyond previously assumed boundaries.

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Kin Mining (ASX:KIN) has recorded grades up to 24.7 g/t gold in new drilling at its Leonora project in Western Australia where deeper exploration has indicated that a broad zone of gold mineralisation persists at depths below historic underground workings.

A new hole adjacent to an historic intersection of 9 metres at 3.65 g/t gold from 61 metres returned another 5 metres at 7.99 g/t gold from 59 metres, including a higher grade interval of 1 metre at 24.7 g/t gold.

This area, known as the Merton's Reward target, is part of the project's Mertondale prospect, where an historic underground mine averaged grades of more than 20 g/t gold.

The latest drilling result at Merton's Reward confirms the target's ore shoot extends further east than previously modelled.

This ore extension requires further drilling along strike to establish the length and geometry of the ore shoot, which is anticipated to be incorporated into a revised resource model.

Four new deep reverse circulation holes have now been completed in the area and have indicated that the historically mined shear zone is persistent further north than previously modelled.

Assays are pending and are expected in the coming week.


Recent progress

Exploration traction at Leonora has built on a recent show of investor support for the project in the form of a A$1.2 million capital raising from the shortfall of a share purchase plan launched earlier this year.

Funds will be used for drilling at the company's Gwalia South prospect and to advance Leonora.

Gwalia South hosts four high-priority gold targets immediately south of the Sons of Gwalia 7-million-ounce gold mine.

Gwalia South comprises tenements that are blanketed by areas of widespread soil cover including Lake Raeside. The holdings have been insufficiently tested by previous mine explorers.

Also, Kin has realised positive trial mining progress and a mining approval at Leonora with optimisation and mine scheduling having been revised.

The new mine design generates a more economically robust mining schedule incorporating more than 30% less waste.

The operation is seen as a low cost entry to gold production via vat leaching.


Analysis

Kin’s intersection of 5 metres of almost 8 g/t gold at a vertical depth of 50 metres is extremely encouraging, especially considering the historic reputation of Merton’s Reward for hosting high-grade gold operations.

Merton’s Reward was mined extensively in the early 1900s with total production of 90,000 tonnes at 21 g/t gold for 60,524 ounces, making it one of the highest-grade deposits in WA’s Eastern Goldfields.

The fact that mineralisation has been demonstrated to persist at depths below the historic underground working and further north than previously expected is an interesting development that bodes well for more advanced exploration in the area.

Also, the mineralisation is correlating with predicted target zones and confirms Kin’s new geological model will be useful for targeting future drill campaigns.

Potential price catalysts for Kin stock are represented by upcoming assay results for two other target areas at Merton’s Reward, a revised resource model and the prospect that more informed drilling next year will further prove up Leonora’s inherent value.


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