PATRONUS RESOURCES LIMITED — Capital/Financing Update 2014

Oct 21, 2014

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ASX Code: KIN
22 October 2014
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Board of Directors

Terry Grammer Chairman

Trevor Dixon

Managing Director

Fritz Fitton Technical Director

Joe Graziano

Non-Executive Director & Company Secretary

Contact Details

Office

342 Scarborough Beach Road Osborne Park Western Australia 6017

Phone

08 9242 2227

Fax

08 9242 1277

Email

info@kinmining.com.au

Website

www.kinmining.com.au

Shares on Issue: 43,352,850 (KIN)

Options on Issue: 19,362,512 at $0.30 Expiring 31 January 2015

ASX: KIN

Drilling Commences at Kingfisher Nickel-Copper prospect following Confirmation of Two Strong Bedrock EM Conductors

Target modelled at 255m (vertcal depth): to be tested with three 100m spaced RC drill holes

HIGHLIGHTS

• Two anomalous bedrock conductors confirmed from recent MLEM survey.

• Both targets, KFC1 and KFC2 are interpreted to be bedrock conductors consistent with an accumulation of sulphides.

• Vertical RC drilling has commenced at the priority KFC2 target.

Kin Mining (ASX:KIN) is pleased to advise that it has commenced Reverse Circulation (RC) drilling to test the first of two highly prospective EM targets at its Kingfisher Nickel-Copper PGE prospect (M40/330) located near Leonora in WA.

An initial three hole drill programme for approximately 900m, targeting Kingfisher Conductor Two (KFC2), one of two bedrock geophysical conductors identified in a recent Moving Loop Electro Magnetic (MLEM) survey has commenced.

Further to its ASX Announcement of 8[th] October 2014, the Company has received further positive results from the infill MLEM survey which was managed and interpreted by Newexco Services Pty Ltd. The results have enabled Newexco to confirm and model the two conductors.

GEM Geophysics under the supervision of Newexco (25/9/14 - 12/10/14) collected MLEM geophysical data at Kingfisher by surveying the entire tenement with 133 sounding stations along 12 profiles for an advance of 12.1 line kilometres.

Results are regarded as positive with two conductors identified as a result of the geophysical MLEM survey, namely Kingfisher Conductor One (KFC1) and Kingfisher Conductor Two (KFC2). Both are genuine bedrock conductors displaying pronounced exponential decays observed at multiple survey stations on multiple 200m spaced survey lines. Decay analysis shows a clear exponential decay at late time with constraints in the range of 8-16ms, the time constants are consistent with an accumulation of sulphides.

Conductor KFC2 represents a high priority target with the response interpreted to be centred on line 6784200mN with contiguous anomalism also identified on 6784600mN and 6784800mN; the later northern response may explain the KFC2 (north) conductor at depth.

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ASX Code: KIN
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The southern conductive plate KFC2 south is currently being RC drilled. Drilling will target the top of the electromagnetic response, at a modelled depth of 255 vertical metres, in an area that has not been subjected to any deep historical drilling.

Three vertical RC holes (KF14RC001-003) are planned at 100m line spacing centred on the peak KFC2 response. Follow up additional drilling of other conductors; KFC2 north and KFC1 are proposed pending initial assay results (Figure 1).

Details of the programme are set out in the following table.

Table 1 - RC drill hole details, proposed KIN RC holes targeting KFC2 south

East(MGA)	North (MGA)	KIN Hole ID	Conductor depth(m)
340340	6784100	KF14RC002	250-255
340360	6784200	KF14RC001	255
340380	6784300	KF14RC003	255-260

The RC drilling programme commenced on Tuesday (21/10/14) with the first 300m drill hole (KF14RC001) already collared.

The western conductor, KFC1, represents a strike extensive bedrock conductor displayed on multiple lines over at least 1,200m of strike; however, total survey coverage was not completed as the lines approaching KFC1 were confined to Kin tenure.

An additional follow-up EM survey is recommended to accurately model the source of the geophysical response at KFC1.

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Photo 1 - M40/330 Kingfisher prospect, looking northward towards conductors

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ASX Code: KIN

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Figure 1 – Proposed RC drill hole locations (KFC2 south) over TMI magnetic image with historical drill hole data

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ASX Code: KIN
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Details of the geophysical survey methodologies and techniques are provided in Kin’s ASX announcement dated 10/10/14.

A series of tables of modelled conductive plate dimensions and surveying details is provided (Tables 2, 3 and 4).

Table 2 - KFC1 Modelled Plate Parameters

Table 2 - KFC1 Modelled Plate Parameters	Table 2 - KFC1 Modelled Plate Parameters
Table 2: KFC01 Modelled Plate Parameters
Plate Name	KFC1
Reference	centre top
x(MGA94 zone 51 Eastng)	339900
y (MGA94 zone 51 Northing)	6784620
z(vertcal depth in metres)	-125
Depth to top (m)	-125
Dip (degrees)	52.5
DipDirecton(degrees)	105
Rotaton	-5
Length(m)	1500
Depth Extent(m)	800
Conductvity-Thickness(m)	150

Table 3 - Modelled Plate Parameters

Table 3 - Modelled Plate Parameters	Table 3 - Modelled Plate Parameters	Table 3 - Modelled Plate Parameters
Table 3: KFC02 Modelled Plate Parameters
Plate Name	KFC02A	KFC2B
Reference	centre top	centre top
x(MGA94 zone 51 Eastng)	340315	340740
y (MGA94 zone 51 Northing)	6784210	6784735
z(vertcal depth in metres)	-205	-285
Depth to top (m)	-205	-285
Dip (degrees)	47.5	42.5
DipDirecton(degrees)	100	112.5
Rotaton	0	0
Length(m)	500	400
Depth Extent(m)	400	400
Conductvity-Thickness(m)	300	250

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ASX Code: KIN
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Table 4 - Electromagnetic (MLEM) Geophysical Surveying Details

Item	Details
Operator	GEM Geophysics
Sensor	EMIT Smart Flux B-feld Magnetometer
Receiver	EMIT SMARTemV
Transmiter	Zonge ZT - 30
Confguraton	In-loop
LoopSize	200m x 200m
Number of Turns	one
Tx Current	47A
Base Frequency	1Hz
Staton Spacing	100m
Line Spacing	200m and 400m
QualityControl Measures	Repeat Readings at each Staton

Competent Persons Statement

The information in this report that relates to mineral resources and exploration results is based on information compiled by Mr Paul Maher who is a Member of the Australian Institute of Mining and Metallurgy. Mr Maher is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Exploration results reported in this document were originally obtained by other companies and sourced from open file WAMEX reports; they are historic and have not been independently verified. The original samples are no longer available; assay methodologies vary and have not been subject to current QA/QC protocols. Mr Maher has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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