Kin Mining targets further resource updates following strong December drilling results

Kin Mining NL (ASX:KIN) (FRA:8KM) enjoyed a positive December quarter, with Phase 3 drilling at the company’s 100%-owned Cardinia Gold Project (CGP) in Western Australia culminating in an interim update to the mineral resource estimate (MRE). The interim MRE update is 28.2 million tonnes at 1.27 g/t gold for 1.15 million ounces of contained gold, representing a 22% increase in contained ounces over the previous estimate. This includes the maiden inferred resource for the Cardinia Hill deposit of 61,000 ounces, which the company believes offers scope for further growth. The updated MRE is based on a 2020 gold price of A$2,600/ounce, optimisation shell using guidance from the 2019 pre-feasibility study with increased mining cost assumptions, and a lower cut-off grade of 0.4 g/t gold. Phase 3 drilling program Kin Mining expects to release further resource updates in the current quarter following strong drilling results in December. The Phase 3 drilling program comprised 60,000 metres of reverse circulation (RC), diamond and aircore drilling, designed to deliver a maiden resource estimate for the high-priority Cardinia Hill target, as well as to provide an initial assessment of several compelling regional targets. During the December 2020 quarter, a total of 26,786 metres of drilling was completed at Cardinia Hill, Hobby, East Lynne, Collymore, Bruno Lewis Deeps, Pelsart and Iron King following 33,701 metres of drilling in the September 2020 quarter. Assays from 29,159 metres of drilling were reported during the quarter, including assays from 16,426 metres of drilling in the previous quarter, with assay results for the remaining 14,053 metres of 2020 drilling expected in the near term. CGP exploration results Assay results from the final RC and diamond drill-holes at Cardinia Hill have confirmed the company’s understanding of the geology and sulphide zones, with assays including: 6 metres at 5.98 g/t from 25 metres and 21 metres at 6.62 g/t from 37 metres, including 14 metres at 9.04 g/t from 38 metres; 17 metres at 2.05 g/t from 23 metres; 6 metres at 2.53 g/t from 14 metres; 15 metres at 1.30 g/t from 61 metres; 11 metres at 1.94 g/t from 97 metres; 5.4 metres at 6.18 g/t from 186.4 metres; 5.3 metres at 3.31 g/t from 96 metres; and 31.9 metres at 1.20 g/t from 83.3 metres including 8.3 metres at 2.65 g/t from 107.4 metres. Location of the target areas for the Cardinia regional drilling program. Hobby discovery The company also reported strong assay results from final RC drill-holes at the Hobby discovery, including: 5 metres at 27.7 g/t from 109 metres; 2 metres at 8 g/t from 30 metres; 2 metres at 6.93 g/t from 62 metres; 5 metres at 2.80 g/t from 37 metres and 6 metres at 2.71 g/t from 71 metres; and 11 metres at 1.61 g/t from 14 metres. Work will start on an updated MRE for Hobby, which is expected to be delivered in the March 2021 quarter with further drilling planned to expand mineralisation. East Lynne deposit At East Lynn deposit, drilling also greatly enhanced the company’s understanding of the structure of mineralisation, with mineralisation defined over 3.2 kilometres in several semi-continuous positions, and aircore drilling also delineating a new zone of mineralisation in the Northern Zone at East Lynne – now named Collymore – extending over a strike extent of 2 kilometres. For 2021, the company plans for exploration programs to focus on the potential for a series of smaller, adjacent, high-grade deposits rather than a single large deposit. Additionally, assay results from initial RC drilling at East Lynne and Collymore show potential for high-grade mineralisation, encountering narrow zones grading up to 6.1 g/t. Location of the Hobby RC and DD results in the infill drilling. Further resource updates The company is confident there are numerous near-term opportunities to further expand the CGP resource base, with outstanding potential to extend several key deposits at depth, as well as a string of recent high-grade drilling results (including at Hobby and Bruno Lewis Deeps) that are yet to be included in the updated mineral resource model. Kin is well funded going forwards, reporting $2.267 million cash on hand at the end of the December quarter and the company expected to release further updates to the CGP MRE during the March quarter.