The LGP contains 1.05 million ounces at an average grade of 1.46 g/t gold spread across three mining centres — Mertondale, Cardinia and Raeside.
Each mining centre hosts multiple gold deposits, many which show good potential for resource growth.
Kin’s chairman Jeremy Kirkwood said: “Our strategy is focussed on adding value to the LGP by testing the depth extensions of known deposits, upgrading and expanding mineral resources, simplifying and de-risking ore, water and power supply, and completing a robust cost estimate and schedule for development.”
In September 2018, Kin added 33,900 ounces to the indicated and inferred resource at Helens deposit within the Cardinia Mining Centre.
The updated estimate of 70,900 ounces includes a 29% increase in tonnage, a 49% increase in grade and a 92% increase in ounces.
It supports a larger open pit development at Helens, which is 2 kilometres from the Cardinia processing plant site.
Kin's mining centres near Leonora in Western Australia
Kirkwood added: “Drilling in the second half of financial year 2018 has identified new zones of mineralisation linking the Helens Main and Helens South zones.
“Significantly, the deepest drill hole in the region returned a very encouraging 15.8 metres at 3.77 g/t gold from 266 metres, underscoring the depth potential at Helens and the wider tenement package which has been subjected to very limited drilling below 100 metres.”
Repositioning the LGP for a lower risk development decision in 2019
The chairman said: “This strategy of exploration, de-risking and project optimisation at the LGP will continue into FY19.”
Kin’s chief executive officer Andrew Munckton added: “Work during the September quarter proved our belief in the ability to extend known resources at the LGP at depth as we continue to de‐risk key aspects of the project such as water supply and mine planning.”
Regional exploration also underway
A project‐wide targeting program has been undertaken in parallel with exploration and drilling at the main mining centres of the LGP.
Kin has completed a comprehensive, detailed mapping and target-generation work program over the core of the LGP tenure.
It has identified a number of new targets in covered terrain and reinterpreted historical high-grade mining areas with modern “mineralised system” thinking.
In early-mid October, Kin revealed that it had identified new targets with no history of previous exploration through geological mapping at the LGP.
Munckton added: “Developing our understanding of the wider exploration potential of the LGP is an important pillar to generate more value for shareholders.
“The work completed to date has successfully identified prospective new areas which will be progressed towards drilling in 2019 as we remain focused on our key objectives of expanding resources and delivering the LGP to a lower risk development decision point.”
A 2:5 rights issue priced at 8 cents to raise up to $10.4 million opened on October 22, 2018 to progress the LGP.
The funds raised will also be used for accelerated exploration of new targets, with the potential to deliver further significant resource growth at the LGP and repay the outstanding US$3 million Sprott facility.
These activities represent a pathway over the next 9 to 12 months to a fuller understanding of the overall gold endowment potential and optimised development scope of the LGP.