Kin Mining NL has had another “extremely active and positive period” in the September quarter, with drilling programs delivering positive results at its flagship 100%-owned Cardinia Gold Project (CGP) in Western Australia.
The highlights for the quarter included an updated mineral resource estimate (MRE) for the Cardinia Hill deposit, as well as positive drilling results, which further upgraded the prospectivity of the regional Mount Flora and Iron King prospects.
The CGP mineral resource has now risen to 1.28 million ounces following the upgrade for Cardinia Hill.
Further, gold producer St Barbara Ltd (ASX:SBM) has emerged as a 19.8% shareholder in Kin Mining.
Host long-term mining operation
Kin Mining managing director, Andrew Munckton said: “Our ongoing drilling programs at the Cardinia Gold Project have continued to highlight its potential to host a significant long‐term gold mining operation, with a string of positive results across the Cardinia Hill, Rangoon and Fiona deposits, as well as from the early stage Eagle‐Crow, Mount Flora and Iron King targets.
“Late in the quarter, we were pleased to announce an updated MRE for the rapidly‐emerging Cardinia Hill deposit of 106,000 ounces, with drilling delivering an additional 45,000 ounces of contained gold at Cardinia Hill since the previous resource estimate reported in May.
“Also within the CGP’s fertile Eastern Corridor, drilling around the historical Rangoon mine workings identified new zones of shallow dipping, high‐grade mineralisation with results including 3 metres at 21.1 g/t gold."
Eagle-Crow drilling
Further afield, follow‐up reverse circulation (RC) drilling at Eagle‐Crow, 2 kilometres from the centre of the CGP, continued to highlight prospectivity, with assays including 17 metres at 3.78 g/t gold, demonstrating the potential for multiple zones of shallow, high‐grade gold mineralisation.
New discovery at Mt Flora
At Mt Flora, 20 kilometres east of the CGP, drilling has confirmed a new gold discovery, with results indicating the presence of a primary gold system beneath the 700 metres long, near surface Eastern Zone mineralisation.
“These regional targets offer outstanding potential to further expand the mineral resource base at the CGP, which now stands at 1.28 million ounces of contained gold," Munckton said
Resource updates
Resource updates expected in the coming months include Eagle‐Crow, Mt Flora, Iron King and depth extensions to Bruno‐Lewis.
“To underpin the next phase of systematic exploration work at the CGP and to follow up on the exciting new discoveries and targets we’ve identified, subsequent to quarter‐end Kin launched a non-renounceable 1‐for‐6.5 pro‐rata Entitlement Offer to raise up to $12.9 million," the MD said.
At the end of the September quarter, Kin had $3.481 million cash on hand.
New major shareholder
“Also on the corporate front, we were pleased to welcome ASX 200-listed gold producer St Barbara Ltd as a major shareholder during the quarter, with St Barbara acquiring a 19.79% stake in the company," he said.
Subsequent to the end of the quarter, St Barbara presented a non‐binding indicative offer to acquire 100% of Kin shares via a Scheme of Arrangement at an implied price of $0.16 per Kin share in St Barbara shares.
The Kin board rejected the offer as it would not have been approved by the requisite 75% voting majority of Kin’s shareholders.
“We continue to maintain a positive relationship with St Barbara as a major shareholder as the company works to unlock the potential of the Cardinia Gold Project,” Munckton added.