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Kin Mining NL
Summary
| Project: | Leonora | |
|---|---|---|
| Deposit: | Leonora | |
| Location: | Australia | |
| Commodities: | Gold | |
| Date: | 10/2/2017 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 2-10-2017: Kin Mining NL announces a Feasibility Study report for its Leonora deposit at the Leonora project. Study results incl. VPV A$107.4M (@8%, pre-tax), 77% IRR and Initial Ore reserve estimate. Kin Mining NL (“Kin” or “Company”) (ASX:KIN) is please | |
| Resources: | (Reserve, Prob.): 7.933Mt @ 1.5g/t Au for 373000oz a6 Leonora | |
| CP/QP: | [Overall Report]: n/a (n/a) | |
| ABSTRACT: | Kin Mining NL (“Kin” or “Company”) (ASX:KIN) is pleased to announce the completion of the Definitive Feasibility Study (DFS) for the Company’s 100% owned Leonora Gold Project (LGP) in the North-Eastern goldfields of Western Australia. The LGP contains Indicated and Inferred Resources of 22.3 Mt @ 1.4 g/t gold for 1.02Moz of contained gold (see Table 4). The DFS has delivered a robust forecast outcome for the Company. The LGP will generate strong free cash flows underpinned by a low capex pathway to cash flow. The DFS confirmed the LGP as a technically sound and highly profitable project. Development is based on three open pit mining centres (Mertondale, Cardinia and Raeside) which will supply a 1.5Mtpa conventional CIL processing plant centrally located at Cardinia. The feasibility study has delivered a Maiden Ore Reserve of 373koz (7.9Mt @ 1.5g/t). Kin has secured ownership of the Lawlers Processing Facility, supported by the option to purchase a 2.5MW ball mill providing the capacity to treat up to 1.5Mtpa on oxide and transition ores. The pre-production capital cost is $35.4M which includes 18% in contingencies. By scheduling the mining of the high margin and low strip ratio open pits first, the pre-production capital is repaid in just 11 months. The project has an initial mine life of 7 years, with considerable exploration upside. The DFS provides a LOM operating cash cost (C1) of A$957/oz. and an All-In-Sustaining Cost (AISC) of A$1,038/oz. for the life of the project. The LGP delivers a discounted NPV8% of A$107.4M (before corporate costs and tax) and an Internal Rate of Return (IRR) of 77%. The forecast LOM revenue is $596.1M with a projected operating cash-flow surplus of $167.9M based on a gold price of A$1,600/oz. An estimated 8.6Mt at 1.5g/t (405koz) will be mined and processed, delivering 372koz of recovered gold. | |
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