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PATRONUS RESOURCES LIMITED Capital/Financing Update 2017
65620_rns_2017-02-08_2ce13497-ef5c-46d4-8ca3-caf31348dbd4.pdf
Capital/Financing Update
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KIN MINING NL ACN 150 597 541
(ASX: KIN)
9 th February 2017
Correction to Announcement "Shallow High Grade Gold Drilling Results Boost LGP"
Kin Mining NL (ASX: KIN) advises that the announcement this morning titled "Shallow High Grade Gold Drilling Results Boost LGP" had omitted Table 1 Section 2 – Reporting of Exploration Results.
The Company discovered the omission after review of the announcement post lodgement and has amended the announcement accordingly to provide all relevant JORC Code compliance requirements.
Please see the attached amended announcement
Yours Faithfully
JOE GRAZIANO Company Secretary
9th February 2017
Board of Directors
TerryGrammer Chairman
Trevor Dixon Executive Director
Fritz Fitton Technical Director
Joe Graziano
Non-Executive Director & Company Secretary
Contact Details
Post
PO Box 565 Mount Hawthorn Western Australia 6915
Office
342 Scarborough Beach Road Osborne Park Western Australia 6017
Phone 08 9242 2227
Fax 08 9242 1277
Email [email protected]
Website www.kinmining.com.au
46,614,690 (KIN) Shares on Issue: 114,360,309
Unlisted Options: 13,445,000
ASX: KIN
High-grade near surface drill results provide another boost to the Leonora Gold Project
Results of up to 19g/t Au at the Kyte deposit will form part of the new Resource estimate being calculated for the Feasibility Study
Kin Mining NL (ASX: KIN) is pleased to report high-grade near surface drilling results from the Kyte deposit at its Leonora Gold Project in WA. The positive results come from both inside and outside the planned open pit at Kyte (Figure 1) and when combined with the free-digging, low strip ratio nature of the deposit, highlight its potential to be an early source of high-margin mill feed for the project.
The results include:
- 6m @ 8.8 g/t Au from surface, including 4m @ 12.3 g/t Au with 1m @ 19.3 g/t Au & 8m @ 1.5 g/t Au from 17m (KY17RC010)
- 21m @ 2.3 g/t Au from 11m, including 8m @ 4.4 g/t Au which includes 3m @ 7.4 g/t Au (KY17RC015)
- 15m @ 2.6 g/t Au from 4m, including 3m @ 6.7 g/t and 1m @ 15.2 g/t Au (KY17RC029)
- 10m @ 3.4 g/t Au from 10m, including 2m @ 12.2 g/t (KY17RC045)
The Kyte results follow the recent strong in-fill and extensional drilling results from the Mertons Reward and Mertondale 3-4 deposits at the Leonora Gold Project (see ASX release dated February 6, 2017).
The Kyte deposit is part of the greater resource at Cardinia which currently stands at 4.86Mt @ 1.3 g/t Au for 192,000 oz (see attached resource table). Kin has closed-down the drill spacing by drilling between existing sections with a Reverse Circulation (RC) drill rig. This latest drilling at Kyte was designed to convert Inferred Resources into the higher confidence Indicated Resource category.
The drill rig has now moved to the nearby Rangoon deposit where further infill drilling will continue as part of the Definitive Feasibility Study, which is set to be completed in mid-2017.
Kin Chief Executive Don Harper said the latest results provided another boost to the upcoming Resource estimate and Feasibility Study.
"These shallow, high grade results within the free-digging planned Kyte open pit have exceeded our expectations," Mr Harper said. "In light of these results, Kyte may be scheduled earlier in the mine plan than previously anticipated, leading to earlier and increased revenue generation."
Other significant intersections of gold mineralisation were encountered at Kyte, confirming the robust shallow gold mineralisation.
Higher grade down-hole intersections include:
- 14m @ 1.6 g/t Au from 12m, including 3m @ 2.9 g/t Au (KY17RC003)
- 11m @ 2.4 g/t Au from 19m, including 3m @ 4.9 g/t Au which includes 1m @ 7.7 g/t Au (KY17RC005)
- 9m @ 3.3 g/t Au from 17m, including 4m @ 5.3 g/t Au (KY17RC021)
- 12m @ 2.3 g/t Au from 12m including 5m @ 4.6 g/t Au which includes 1m @ 11.6 g/t Au (KY17RC032)
- 24m @ 1.6 g/t Au from 3m (KY17RC036)
- 14m @ 1.5 g/t Au from surface and 15m @ 2.3 g/t Au from 18m (KY17RC037)
- 9m @ 3.2 g/t Au from 4m and 11m @ 1.6 g/t Au from 17m (KY17RC042)
Further shallow intersections of gold mineralization were also recorded at Kyte, including:
- 4m @ 4.6 g/t Au from 26m, including 2m @ 8.7 g/t Au (KY17RC004)
- 7m @ 1.9 g/t Au from 9m, including 3m @ 3.3 g/t Au (KY17RC006)
- 15m @ 1.0 g/t Au from 12m (KY17RC011)
- 14m @ 1.4 g/t Au from 11m (KY17RC012)
- 6m @ 1.7 g/t Au from 6m and 12m @ 1.6 g/t Au from 21m (KY17RC016)
- 1m @ 11.0 g/t Au from 13m and 1m @ 7.4 g/t Au from 16m (KY17RC017)
- 4m @ 5.2 g/t Au from 20m, including 2m @ 8.0 g/t Au (KY17RC022)
- 5m @ 5.6 g/t Au from 14m, including 3m @ 8.4 g/t Au (KY17RC023)
- 8m @ 1.9 g/t Au from 11m (KY17RC030)
- 10m @ 1.5 g/t Au from 14m (KY17RC031)
- 12m @ 0.9 g/t Au from 18m and 12m @ 0.9 g/t Au from 37m (KY17RC033)
- 11m @ 1.8 g/t Au from 21m (KY17RC038)
- 14m @ 1.1 g/t Au from 10m (KY17RC049)
- 16m @ 0.8 g/t Au from 7m (KY17RC065)
Significant assay results from the ongoing RC drill program will be reported as they come to hand.
-ENDS-
For further information, please contact:
CEO Kin Mining NL Read Corporate
Don Harper Paul Armstrong/Nicholas Read +61 8 9242 2227 +61 (0) 8 9388 1474
About Kin Mining
Kin Mining NL (ASX: KIN) is an emerging gold development company with a significant tenement portfolio in the North-Eastern Goldfields of Western Australia. The immediate focus of the company is the (100% Kin), Leonora Gold Project (LGP) which contains a JORC resource of 721 koz Au. The outcomes of the Pre-Feasibility Study at the LGP, confirmed the potential for Kin to become a low-risk, high-margin gold producer. Gold production is targeted for mid-2018. Please refer to the announcement dated 15 December 2016 titled "PFS Confirms Leonora Gold Project as a High Margin Project". Furthermore the Company confirms in accordance with the PFS announcement lodged on 15 December 2016 that all the material assumptions underpinning the annual production targets as provided in that Report continue to apply and have not materially changed.
The Project has forecast production of approximately 50,000 oz Au per annum, once established, over an initial 6.5-year mine life. Mining will be undertaken at 3 open pit mining centres, feeding a new 750 kappa conventional carbon-in-leach processing plant, to be located at Cardinia. The plant is scheduled to be upgraded to 1.2 Mtpa in Year three. A total of 6.8 Mt of ore grading 1.5 g/t Au are scheduled to be processed over the life of the operation, yielding 309 koz of recovered gold. There is significant exploration upside in the Project area, which may increase the lifetime of the Project. The robust economics of the Project are underpinned by a low pre-production capital cost, of only A$35M (including 15% contingency), and an operating cash flow of A$105M. The capital payback period is notable at only 18 months from first gold production, which demonstrates the low risk, high margin profile of the operation. The life-of-mine All In Sustaining Cost (AISC) is projected to be A$1,084 / oz Au. The Pre-Feasibility Study also identified several areas where opportunities exist to improve the economic and operational performance of the Project, such as securing a good quality second-hand processing plant, improving metallurgical recoveries, and further optimisation of mine designs.
Kin's priority is to complete a Feasibility Study for the LGP by mid-2017. Drilling is in progress with the objective of converting the Inferred Mineral Resources in the mine plan to Indicated Mineral Resources. Metallurgical, geotechnical, and environmental work is scheduled or currently underway to support the DFS, which will form the basis for a decision to mine.
Figure 2 Leonora Gold Project tenure with Mineral Resources and Prospects
| Leonora Gold Project Mineral Resources | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Project | Lowercut-offGrade | Indicated Resources | Inferred Resources | Total Resources | ||||||
| Area | (g/t)Au | Mt | (g/t)Au | (koz)Au | Mt | (g/t)Au | (koz)Au | Mt | (g/t)Au | (koz)Au |
| Mertondale* | ||||||||||
| Mertondale 3-4 | 0.7 | 0.87 | 2.3 | 65 | 0.66 | 2.1 | 45 | 1.53 | 2.2 | 110 |
| Merton's Reward | 0.7 | 1.01 | 2.7 | 87 | 0.07 | 1.7 | 4 | 1.08 | 2.6 | 91 |
| Tonto | 0.7 | 0.97 | 1.9 | 60 | 0.97 | 1.9 | 60 | |||
| Eclipse(Tonto North) | 0.7 | 0.62 | 1.8 | 35 | 0.25 | 1.7 | 14 | 0.87 | 1.8 | 49 |
| Mertondale 5 | 0.7 | 0.32 | 3.2 | 33 | 0.16 | 2.7 | 13 | 0.48 | 3.0 | 46 |
| Quicksilver(Tonto South) | 0.7 | 0.55 | 1.8 | 31 | 0.11 | 2.1 | 8 | 0.66 | 1.8 | 39 |
| Subtotal Mertondale | 4.34 | 2.2 | 311 | 1.25 | 2.1 | 84 | 5.59 | 2.2 | 395 | |
| Cardinia** | ||||||||||
| Bruno-LewisExploration | 0.7 | 1.04 | 1.1 | 37 | 1.52 | 1.3 | 63 | 2.56 | 1.2 | 100 |
| Helen's North | 0.7 | 0.63 | 1.2 | 24 | 0.13 | 1.1 | 5 | 0.76 | 1.2 | 29 |
| Kyte | 0.7 | 0.31 | 1.6 | 16 | 0.31 | 1.6 | 16 | |||
| Rangoon | 0.7 | 0.09 | 1.8 | 5 | 0.23 | 1.3 | 9 | 0.31 | 1.4 | 14 |
| Lewis GradeControl*** | 0.7 | 0.29 | 1.4 | 12 | 0.29 | 1.4 | 12 | |||
| Bruno Grade Control | 0.7 | 0.11 | 1.4 | 5 | 0.03 | 1.1 | 1 | 0.15 | 1.3 | 6 |
| Helen's South | 0.7 | 0.19 | 1.8 | 11 | 0.01 | 1.3 | 0 | 0.20 | 1.7 | 11 |
| Lewis South | 0.7 | 0.10 | 1.3 | 4 | 0.10 | 1.3 | 4 | |||
| Subtotal Cardinia | 2.35 | 1.3 | 94 | 2.33 | 1.3 | 98 | 4.68 | 1.3 | 192 | |
| Raeside | ||||||||||
| MichelangeloLeonardo | 0.7 | 1.28 | 2.7 | 111 | 1.28 | 2.7 | 111 | |||
| Forgotten Four | 0.7 | 0.07 | 3.0 | 7 | 0.10 | 2.1 | 7 | 0.17 | 2.5 | 14 |
| Krang | 0.7 | 0.11 | 2.6 | 9 | 0.11 | 2.6 | 9 | |||
| Subtotal Raeside | 1.47 | 2.7 | 127 | 0.10 | 2.1 | 7 | 1.57 | 2.6 | 134 | |
| TOTAL | 8.16 | 2.0 | 532 | 3.7 | 1.6 | 189 | 11.8 | 1.9 | 721 |
Table of Kin Mining Mineral Resources (Refer ASX announcement 11th May 2015)
Totals may not tally due to rounding of values.
* Resource estimate by McDonald Speijers, 2009 with Merton's Reward depleted by McDonald Speijers in 2010.
** Resource estimate by Runge Limited, 2009 with Bruno Grade Control depleted by Runge in 2010.
Notes: Assay top cuts for Mertondale and Raeside are variable but generally between 10-20 g/t Au and are 15g/t Au at Cardinia. No allowance has been made for dilution or ore loss. All resources are constrained by open pit shells optimised at A$2,000/oz.
*** Resource Estimate at Lewis depleted by 999oz from Lewis Pit Trial Mining completed in June 2016 (ASX announcement 5 October 2016). Production targets include depletion.
Kyte RC Drill Results (>0.4g/t with no more than 2m of internal dilution)
| Hole | Hole | Easting | Northing | Azimuth | From | To | Width | Grade |
|---|---|---|---|---|---|---|---|---|
| ID | Depth (m) | MGA | MGA | & dip | (m) | (m) | (m) | (g/t) |
| KY17RC001 | 25 | 361951 | 6813868 | 250°/-60° | 8 | 9 | 1 | 0.5 |
| 10 | 12 | 2 | 1.3 | |||||
| 15 | 17 | 2 | 1.0 | |||||
| KY17RC002 | 25 | 361971 | 6813875 | 250°/-60° | 1 | 2 | 1 | 0.5 |
| 3 | 4 | 1 | 0.9 | |||||
| 8 | 14 | 6 | 0.8 | |||||
| incl. | 8 | 10 | 2 | 1.4 | ||||
| 11 | 14 | 3 | 0.6 | |||||
| 17 | 18 | 1 | 1.5 | |||||
| KY17RC003 | 35 | 361991 | 6813881 | 250°/-60° | 8 | 9 | 1 | 7.2 |
| 12 | 26 | 14 | 1.6 | |||||
| incl. | 13 | 16 | 3 | 2.9 | ||||
| and | 19 | 24 | 5 | 2.3 | ||||
| KY17RC004 | 35 | 362008 | 6813887 | 250°/-60° | 4 | 6 | 2 | 1.3 |
| 17 | 18 | 1 | 0.5 | |||||
| 21 | 23 | 2 | 0.7 | |||||
| 26 | 30 | 4 | 4.6 | |||||
| incl. | 27 | 29 | 2 | 8.7 | ||||
| incl. | 27 | 28 | 1 | 13.5 | ||||
| KY17RC005 | 30 | 362029 | 6813894 | 250°/-60° | 0 | 1 | 1 | 0.5 |
| 11 | 12 | 1 | 0.5 | |||||
| 13 | 14 | 1 | 0.6 | |||||
| 19 | 30 (EOH) | 11 | 2.4 | |||||
| incl. | 20 | 23 | 3 | 4.9 | ||||
| incl. | 22 | 23 | 1 | 7.7 | ||||
| and | 27 | 30 (EOH) | 3 | 2.7 | ||||
| KY17RC006 | 25 | 362052 | 6813901 | 250°/-60° | 0 | 3 | 3 | 0.8 |
| 9 | 16 | 7 | 1.9 | |||||
| incl. | 9 | 12 | 3 | 3.3 | ||||
| KY17RC007 | 25 | 361967 | 6813860 | 250°/-60° | 3 | 12 | 9 | 1.0 |
| incl. | 4 | 5 | 1 | 2.6 | ||||
| and | 7 | 8 | 1 | 3.2 | ||||
| KY17RC008 | 25 | 361959 | 6813849 | 250°/-60° | 3 | 4 | 1 | 1.3 |
| 11 | 12 | 1 | 0.8 | |||||
| 14 | 15 | 1 | 0.5 | |||||
| KY17RC009 | 25 | 361984 | 6813857 | 250°/-60° | 5 | 11 | 6 | 0.9 |
| incl. | 5 | 6 | 1 | 3.0 | ||||
| 14 | 15 | 1 | 0.6 | |||||
| 18 | 19 | 1 | 0.8 | |||||
| KY17RC010 | 28 | 362005 | 6813864 | 250°/-60° | 0 | 6 | 6 | 8.8 |
| incl.and | 01 | 42 | 41 | 12.319.3 | ||||
| 1017 | 1125 | 18 | 0.71.5 | |||||
| incl. | 20 | 22 | 2 | 2.8 | ||||
| KY17RC011 | 35 | 362023 | 6813870 | 250°/-60° | 112 | 327 | 215 | 0.91.0 |
| incl. | 13 | 15 | 2 | 1.8 | ||||
| incl. | 23 | 26 | 3 | 1.7 | ||||
| 30 | 31 | 1 | 0.5 | |||||
| 33 | 34 | 1 | 0.4 | |||||
| Hole | Hole | Easting | Northing | Azimuth | From | To | Width | Grade |
|---|---|---|---|---|---|---|---|---|
| ID | Depth (m) | MGA | MGA | & dip | (m) | (m) | (m) | (g/t) |
| KY17RC012 | 35 | 362037 | 6813875 | 250°/-60° | 5 | 7 | 2 | 1.9 |
| 11 | 25 | 14 | 1.4 | |||||
| incl. | 18 | 24 | 5 | 2.1 | ||||
| KY17RC013 | 22 | 362005 | 6813849 | 250°/-60° | 11 | 12 | 1 | 0.5 |
| 19 | 20 | 1 | 0.9 | |||||
| 21 | 22 | 1 | 0.4 | |||||
| KY17RC014 | 25 | 362012 | 6813843 | 250°/-60° | 11 | 12 | 1 | 0.8 |
| 15 | 17 | 1 | 1.1 | |||||
| KY17RC015 | 35 | 362036 | 6813853 | 250°/-60° | 1 | 2 | 1 | 0.9 |
| 4 | 5 | 1 | 0.6 | |||||
| 11 | 32 | 21 | 2.3 | |||||
| incl. | 11 | 19 | 8 | 4.4 | ||||
| incl. | 16 | 19 | 3 | 7.4 | ||||
| KY17RC016 | 35 | 362051 | 6813859 | 250°/-60° | 6 | 12 | 6 | 1.7 |
| 15 | 16 | 1 | 1.5 | |||||
| 21 | 33 | 12 | 1.6 | |||||
| incl. | 28 | 30 | 2 | 4.4 | ||||
| KY17RC017 | 25 | 362077 | 6813869 | 250°/-60° | 10 | 11 | 1 | 0.7 |
| 13 | 14 | 1 | 11.0 | |||||
| 16 | 17 | 1 | 7.4 | |||||
| 23 | 25 (EOH) | 2 | 0.7 | |||||
| KY17RC018 | 30 | 361872 | 6813951 | 250°/-60° | 521 | 624 | 13 | 2.41.5 |
| incl. | 23 | 24 | 1 | 2.3 | ||||
| KY17RC019 | 35 | 361893 | 6813957 | 250°/-60° | 21 | 22 | 1 | 1.5 |
| 25 | 29 | 4 | 0.7 | |||||
| incl. | 28 | 29 | 1 | 1.2 | ||||
| KY17RC020 | 40 | 361912 | 6813964 | 250°/-60° | 4 | 7 | 3 | 0.7 |
| incl. | 6 | 7 | 1 | 1.5 | ||||
| 18 | 24 | 6 | 0.8 | |||||
| incl. | 19 | 20 | 1 | 1.6 | ||||
| 28 | 32 | 4 | 0.8 | |||||
| incl. | 30 | 31 | 1 | 1.2 | ||||
| 35 | 37 | 2 | 1.4 | |||||
| KY17RC021 | 40 | 361939 | 6813973 | 250°/-60° | 6 | 10 | 4 | 0.6 |
| 14 | 15 | 1 | 0.9 | |||||
| 17 | 26 | 9 | 3.3 | |||||
| incl. | 20 | 24 | 4 | 5.3 | ||||
| 30 | 31 | 1 | 0.9 | |||||
| 32 | 33 | 1 | 0.9 | |||||
| KY17RC022 | 40 | 361955 | 6813979 | 250°/-60° | 3 | 4 | 1 | 5.8 |
| 6 | 7 | 1 | 0.8 | |||||
| 10 | 13 | 3 | 1.8 | |||||
| incl. | 10 | 11 | 1 | 4.3 | ||||
| 20 | 24 | 4 | 5.2 | |||||
| incl. | 20 | 22 | 2 | 8.0 | ||||
| 2831 | 3032 | 21 | 1.90.7 | |||||
| 33 | 39 | 6 | 0.7 | |||||
| incl. | 35 | 36 | 1 | 1.3 | ||||
| KY17RC023 | 30 | 361888 | 6813933 | 250°/-60° | 14 | 19 | 5 | 5.6 |
| incl. | 15 | 18 | 3 | 8.5 | ||||
| incl. | 15 | 16 | 1 | 11.1 | ||||
| KY17RC024 | 30 | 361899 | 6813936 | 250°/-60° | 5 | 6 | 1 | 1.4 |
| 11 | 12 | 1 | 0.6 |
| Hole | Hole | Easting | Northing | Azimuth | From | To | Width | Grade |
|---|---|---|---|---|---|---|---|---|
| ID | Depth (m) | MGA | MGA | & dip | (m) | (m) | (m) | (g/t) |
| 24 | 25 | 1 | 0.8 | |||||
| KY17RC025 | 35 | 361926 | 6813944 | 250°/-60° | 8 | 9 | 1 | 1.4 |
| 30 | 31 | 1 | 0.5 | |||||
| 32 | 33 | 1 | 0.5 | |||||
| KY17RC026 | 40 | 361943 | 6813950 | 250°/-60° | 6 | 20 | 14 | 0.6 |
| incl. | 19 | 20 | 1 | 3.8 | ||||
| 24 | 27 | 3 | 1.3 | |||||
| incl. | 25 | 27 | 2 | 1.7 | ||||
| KY17RC027 | 40 | 361973 | 6813961 | 250°/-60° | 9 | 10 | 1 | 1.8 |
| 25 | 40 (EOH) | 15 | 1.1 | |||||
| incl. | 26 | 27 | 1 | 6.9 | ||||
| KY17RC028 | 40 | 361978 | 6813963 | 250°/-60° | 14 | 15 | 1 | 0.5 |
| 33 | 36 | 3 | 1.1 | |||||
| incl. | 34 | 35 | 1 | 1.6 | ||||
| 39 | 40 (EOH) | 1 | 0.9 | |||||
| KY17RC029 | 35 | 361996 | 6813962 | 250°/-60° | 4 | 19 | 15 | 2.6 |
| incl. | 5 | 8 | 3 | 6.7 | ||||
| 5 | 6 | 1 | 15.2 | |||||
| and | 17 | 19 | 2 | 3.0 | ||||
| 23 | 25 | 2 | 0.6 | |||||
| 28 | 29 | 1 | 0.6 | |||||
| 34 | 35 (EOH) | 1 | 1.2 | |||||
| KY17RC030 | 35 | 362022 | 6813971 | 250°/-60° | 11 | 19 | 8 | 1.9 |
| incl. | 15 | 18 | 3 | 2.8 | ||||
| 30 | 31 | 1 | 0.4 | |||||
| 33 | 34 | 1 | 0.4 | |||||
| KY17RC031 | 35 | 361962 | 6813937 | 250°/-60° | 5 | 6 | 1 | 0.7 |
| 14 | 24 | 10 | 1.5 | |||||
| 27 | 28 | 1 | 0.6 | |||||
| KY17RC032 | 50 | 361979 | 6813943 | 250°/-60° | 7 | 8 | 1 | 0.4 |
| 12 | 24 | 12 | 2.3 | |||||
| incl. | 19 | 24 | 5 | 4.6 | ||||
| 21 | 22 | 1 | 11.6 | |||||
| 28 | 29 | 1 | 0.5 | |||||
| 32 | 35 | 3 | 0.6 | |||||
| 37 | 38 | 1 | 0.5 | |||||
| 4249 | 4650 (EOH) | 41 | 0.50.5 | |||||
| KY17RC033 | 50 | 362000 | 6813950 | 250°/-60° | 2 | 5 | 3 | 0.8 |
| 9 | 12 | 3 | 0.4 | |||||
| 18 | 30 | 12 | 0.9 | |||||
| 37 | 49 | 12 | 0.9 | |||||
| KY17RC034 | 50 | 362020 | 6813958 | 250°/-60° | 4 | 5 | 1 | 0.5 |
| 8 | 9 | 1 | 4.0 | |||||
| 11 | 18 | 7 | 1.3 | |||||
| 35 | 36 | 1 | 2.6 | |||||
| 38 | 39 | 1 | 0.6 | |||||
| 41 | 42 | 1 | 1.1 | |||||
| KY17RC035 | 25 | 361957 | 6813913 | 250°/-60° | 4 | 7 | 3 | 0.6 |
| 11 | 12 | 1 | 0.5 | |||||
| 16 | 17 | 1 | 0.8 | |||||
| KY17RC036 | 35 | 361978 | 6813920 | 250°/-60° | 3 | 27 | 24 | 1.6 |
| KY17RC037 | 50 | 361997 | 6813926 | 250°/-60° | 0 | 14 | 14 | 1.5 |
| 18 | 33 | 15 | 2.3 | |||||
| 45 | 47 | 2 | 0.5 | |||||
| Hole | Hole | Easting | Northing | Azimuth | From | To | Width | Grade |
|---|---|---|---|---|---|---|---|---|
| ID | Depth (m) | MGA | MGA | & dip | (m) | (m) | (m) | (g/t) |
| KY17RC038 | 50 | 362015 | 6813933 | 250°/-60° | 1 | 4 | 3 | 0.9 |
| 9 | 11 | 2 | 0.8 | |||||
| 14 | 15 | 1 | 0.8 | |||||
| 21 | 32 | 11 | 1.8 | |||||
| 37 | 40 | 3 | 0.6 | |||||
| 48 | 49 | 1 | 0.5 | |||||
| KY17RC039 | 50 | 362035 | 6813940 | 250°/-60° | 7 | 8 | 1 | 0.7 |
| 10 | 15 | 5 | 0.6 | |||||
| incl. | 12 | 13 | 1 | 1.6 | ||||
| 19 | 20 | 1 | 0.5 | |||||
| 34 | 35 | 1 | 0.6 | |||||
| 39 | 40 | 1 | 0.5 | |||||
| 44 | 47 | 3 | 0.6 | |||||
| KY17RC040 | 25 | 361962 | 6813894 | 250°/-60° | 14 | 15 | 1 | 0.6 |
| KY17RC041 | 30 | 361983 | 6813901 | 250°/-60° | 2 | 8 | 6 | 1.3 |
| incl. | 2 | 5 | 3 | 1.6 | ||||
| 12 | 21 | 9 | 0.7 | |||||
| KY17RC042 | 35 | 362009 | 6813909 | 250°/-60° | 1 | 2 | 1 | 2.5 |
| 4 | 13 | 9 | 3.2 | |||||
| 17 | 28 | 11 | 1.6 | |||||
| 34 | 35 (EOH) | 1 | 0.5 | |||||
| KY17RC043 | 45 | 362029 | 6813916 | 250°/-60° | 2 | 3 | 1 | 0.5 |
| 2 | 3 | 1 | 0.7 | |||||
| 6 | 7 | 1 | 0.6 | |||||
| 9 | 10 | 1 | 0.4 | |||||
| 18 | 19 | 1 | 1.1 | |||||
| 27 | 28 | 1 | 0.6 | |||||
| KY17RC044 | 45 | 362043 | 6813921 | 250°/-60° | 12 | 17 | 5 | 1.9 |
| incl. | 15 | 17 | 2 | 3.8 | ||||
| KY17RC045 | 30 | 362035 | 6813842 | 250°/-60° | 1 | 2 | 1 | 0.6 |
| 10 | 20 | 10 | 3.4 | |||||
| incl. | 12 | 14 | 2 | 12.2 | ||||
| 29 | 30 (EOH) | 1 | 0.7 | |||||
| KY17RC046 | 30 | 362068 | 6813855 | 250°/-60° | 14 | 15 | 1 | 0.8 |
| 18 | 19 | 1 | 1.1 | |||||
| 21 | 22 | 1 | 0.5 | |||||
| KY17RC047 | 30 | 362087 | 6813863 | 250°/-60° | 4 | 5 | 1 | 0.5 |
| 7 | 8 | 1 | 1.0 | |||||
| 10 | 11 | 1 | 1.0 | |||||
| 16 | 18 | 2 | 1.0 | |||||
| KY17RC048 | 25 | 362021 | 6813828 | 250°/-60° | 1 | 4 | 3 | 0.4 |
| 11 | 12 | 1 | 0.5 | |||||
| 23 | 24 | 1 | 0.5 | |||||
| KY17RC049 | 24 | 362046 | 6813837 | 250°/-60° | 10 | 24 (EOH) | 14 | 1.1 |
| incl. | 10 | 13 | 3 | 2.0 | ||||
| KY17RC050 | 30 | 362059 | 6813842 | 250°/-60° | 5 | 10 | 5 | 1.2 |
| 13 | 15 | 2 | 0.5 | |||||
| 17 | 18 | 1 | 0.8 | |||||
| 20 | 28 | 8 | 0.7 | |||||
| KY17RC051 | 25 | 362030 | 6813811 | 250°/-60° | 1 | 10 | 9 | 1.0 |
| KY17RC052 | 25 | 362046 | 6813816 | 250°/-60° | 1 | 4 | 3 | 1.2 |
| 7 | 8 | 1 | 1.1 | |||||
| 14 | 21 | 7 | 1.1 | |||||
| KY17RC053 | 25 | 362086 | 6813828 | 250°/-60° | 17 | 20 | 3 | 1.0 |
| KY17RC054 | 25 | 362041 | 6813804 | 250°/-60° | 4 | 5 | 1 | 0.6 |
| Hole | Hole | Easting | Northing | Azimuth | From | To | Width | Grade |
|---|---|---|---|---|---|---|---|---|
| ID | Depth (m) | MGA | MGA | & dip | (m) | (m) | (m) | (g/t) |
| 9 | 10 | 1 | 0.7 | |||||
| 23 | 24 | 1 | 0.6 | |||||
| KY17RC055 | 25 | 362078 | 6813817 | 250°/-60° | 7 | 16 | 9 | 1.2 |
| incl. | 7 | 9 | 2 | 3.5 | ||||
| 22 | 23 | 1 | 0.6 | |||||
| KY17RC056 | 25 | 362075 | 6813807 | 250°/-60° | 9 | 10 | 1 | 0.5 |
| 18 | 19 | 1 | 0.6 | |||||
| 20 | 21 | 1 | 0.7 | |||||
| KY17RC057 | 21 | 362094 | 6813812 | 250°/-60° | 11 | 12 | 1 | 1.0 |
| 14 | 18 | 4 | 1.2 | |||||
| KY17RC058 | 25 | 362067 | 6813792 | 250°/-60° | 3 | 12 | 9 | 1.0 |
| incl. | 3 | 5 | 2 | 2.4 | ||||
| 15 | 16 | 1 | 0.9 | |||||
| KY17RC059 | 25 | 362082 | 6813798 | 250°/-60° | 3 | 8 | 5 | 1.8 |
| incl. | 3 | 4 | 1 | 5.8 | ||||
| 13 | 16 | 3 | 1.0 | |||||
| KY17RC060 | 18 | 362100 | 6813804 | 250°/-60° | 2 | 5 | 3 | 2.9 |
| 8 | 17 | 9 | 0.6 | |||||
| incl. | 13 | 14 | 1 | 1.3 | ||||
| KY17RC061 | 21 | 362061 | 6813778 | 250°/-60° | 4 | 5 | 1 | 0.9 |
| 7 | 9 | 2 | 1.0 | |||||
| 12 | 19 | 7 | 0.6 | |||||
| KY17RC062 | 25 | 362080 | 6813784 | 250°/-60° | 2 | 3 | 1 | 0.6 |
| 15 | 21 | 6 | 0.7 | |||||
| KY17RC063 | 25 | 362101 | 6813791 | 250°/-60° | 5 | 21 | 16 | 1.0 |
| KY17RC064 | 25 | 362113 | 6813795 | 250°/-60° | 5 | 8 | 3 | 1.2 |
| 12 | 14 | 2 | 1.2 | |||||
| 17 | 21 | 4 | 0.8 | |||||
| KY17RC065 | 25 | 362117 | 6813788 | 250°/-60° | 7 | 23 | 16 | 0.8 |
| KY17RC066 | 25 | 362137 | 6813794 | 250°/-60° | 3 | 4 | 1 | 1.0 |
| 7 | 10 | 3 | 0.8 | |||||
| 19 | 21 | 1 | 0.8 | |||||
| KY17RC067 | 25 | 362067 | 6813822 | 250°/-60° | 8 | 10 | 2 | 2.3 |
| incl. | 8 | 9 | 1 | 4.1 | ||||
| 14 | 15 | 1 | 0.5 | |||||
| 19 | 22 | 4 | 1.3 |
Competent Persons Statement
The information contained in this report relates to information compiled or reviewed by Paul Maher who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and Mr. Simon Buswell-Smith who is a Member of the Australian Institute of Geoscientists (MAIG), both are employees of the company and fairly represents this information. Mr. Maher and Mr. Buswell-Smith have sufficient experience of relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities undertaken to qualify as Competent Persons as defined in the 2012 edition of the "JORC Australian code for reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Maher and Mr. Buswell-Smith consent to the inclusion in this report of the matters based on information in the form and context in which it appears.
Forward Looking Statements
Certain information in this document refers to the intentions of Kin Mining NL, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Kin Mining NL's actual results, performance or achievements to differ from those referred to in this announcement. Accordingly, Kin Mining NL, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this announcement will actually occur as contemplated.
TABLE 1 Section 1 - Sample Techniques and Data
| Criteria | Commentary |
|---|---|
| Samplingtechniques | Drill holes are sampled as one metre (1m) riffle split samples, as drilled. Samples were collected as individualsplit metre intervals. Approximately 3-4kg of sample was collected over each sampled (1m) interval. Allsamples are drill spoil collected via a riffle splitter attached to the rig cyclone and collected/split as drilled.Sampling techniques are considered to be in line with the standard industry practice and are considered tobe representative. Once received at the assay laboratory (SGS) drill samples were dried, crushed, pulverisedand split to a representative 50 gram sample. |
| All drill holes are accurately located and referenced with grid coordinates recorded in the standard MGA94Zone51 grid system. Samples are collected using a standard RC face sampling hammer or blade bit, they aresplit/bagged/logged at the drill site. Samples were analysed via Fire Assayed (50 gram charge) for Au only. | |
| Only the drill results contained in the table of significant intersections are considered in this document. Allsamples and drilling procedures are conducted and guided by Kin Mining protocols, QA/QC procedures areimplemented as per industry standard. | |
| Drillingtechniques | Drilling from surface is completed by standard Reverse Circulation (RC) drilling techniques. RC drilling wasconducted by Orbit Drilling Pty Ltd using a Hydco 350 8x8 Actross drilling rig with a 350psi/1250cfm aircapacity. RC drilling used RC blade bit or a face-sampling hammer over 140mm diameter drill holes. Theholes have been surveyed using a multi-shot downhole camera. In clear drill holes surveying was completedin the open hole otherwise surveying was conducted inside stainless steel rods connected to the end of thedrill string. |
| Drill samplerecovery | Sample recovery is measured and monitored by the drill contractor and Kin Mining representatives, bagvolume is visually estimated and sample recovery was generally very good. The volume of sample collectedfor assay is considered to represent a composite sample. Sample recovery is maximized by using bestpractice drill techniques, the entire 1m sample is blown back through the rod string, the cyclone is thensealed at the completion of each metre, and the sample interval collected and riffle split. The riffle splitteris attached to the rig cyclone; the entire (1m) sample is split. The riffle splitter is cleaned with compressedair at the end of each metre and at the completion of the hole. Duplicate 1m samples and known standardsand blanks are inserted at constant intervals at a rate of five per one hundred samples. |
| The vast majority of samples were collected dry however on rare occasions wet or damp samples wereencountered. The reported intersections were collected over dry intervals; sampling equipment was cleanedperiodically to reduce cross bag contamination. RC drill samples are collected, recorded and stored innumbered calico bags and removed from the field on a daily basis. | |
| No relationship was observed between sample recovery and grade. | |
| Logging | Kin's procedure for geological logging of sample includes recording the colour, lithology, sulphidemineralisation content, veining, alteration, oxidation, grid coordinates, sample interval and depth. Data isphysically and electronically logged and stored. The level of logging detail is considered appropriate forresource drilling. Logging of geology and colour are interpretative and qualitative, whereas logging ofmineral percentage is quantitative. |
| All drill holes are logged in their entirety, at 1m intervals, to the end of hole. All drill hole logging data isdigitally and physically captured, data is validated prior to being uploaded to the data base. | |
| Sub-sampling | See Sampling techniques in the above section. |
| techniquesand samplepreparation | The sample collection methodology is considered appropriate for RC drilling and is within today's standardindustry practice. Split one metre sample (1m) results are regarded as reliable and representative. RCsamples are split with a riffle splitter at one metre intervals as drilled. Analysis was conducted by SGS MineralServices Laboratories. At the laboratory samples are dried, crushed and pulverised until the sample ishomogeneous. Analysis technique for gold (only) was a Fire Assay 50 gram charge AAS finish (Lab methodFAA505). |
| The vast majority of samples were collected dry; on occasion ground water was encountered and a minimalnumber of samples were collected damp. Some residual moisture was present as some samples werecollected however it's regarded as minimal and not of sufficient concentration to affect the samplingprocess. Periodically field standards and duplicate samples were submitted with the sample batch, the assaylaboratory (SGS) also included their own internal checks and balances consisting of repeats and standards;repeatability and standard results were within acceptable limits. |
| Criteria | Commentary |
|---|---|
| No issues have been identified with sample representatively. The sample size is considered appropriate forthis type of mineralisation style. | |
| Quality ofassaydata and | Geochemical analysis was conducted by SGS Laboratories in Kalgoorlie. Sample preparation included dryingthe samples (105°C) and pulverising to 95% passing 75µm. Samples were then riffle split to secure a samplecharge of 50 grams. Analysis was via Fire Assay (FAA505) with AAS finish. Only gold analysis was conducted(ppm detection). The analytical process and the level of detection are considered appropriate for this stageof exploration. |
| laboratorytests | Fire assay is regarded as a complete digest technique. |
| No geophysical tools were used to determine any element concentrations. | |
| Internal laboratory quality control procedures have been adopted and accepted. Certified referencematerial in the form of standards, blanks and duplicates are periodically imbedded in the sample batch byKin Mining at a ratio of 1:20. | |
| Verificationof samplingand | The reported significant intersections have been verified by at least two company geologists. All the loggedsamples have been assayed; the assay data has been stored physically and electronically in the companydatabase using Kin Mining's protocols. The sampling and assay data has been compiled, verified andinterpreted by company geologists. |
| assaying | No holes were twined. No adjustments, averaging or calibrations are made to any of the assay data recordedin the database. QA/QC protocol is considered industry standard with standard reference materialsubmitted on a routine basis. |
| Location ofdata points | Drill hole collars were located and recorded in the field using a hand held GPS with a three metre or betteraccuracy and then followed up by licensed surveyors using a RTK DGPS (with a horizontal and verticalaccuracy of ±50mm.). The grid coordinate system utilised is (GDA94 Zone51). Hole locations were visuallychecked on the ground and against historic plans for spatial verification. Topographic control (i.e. surfaceRL) was recorded by the surveyors as part of the DGPS pick-up. |
| Data spacinganddistribution | The drill hole spacing is project specific; the RC drilling patterns employed were dependent on previousdrilling, geological interpretation and proximity to old workings. The sample spacing is considered closeenough to identify significant zones of gold mineralisation. The drill programme is a follow up/ongoingexploration exercise that was designed to identify areas of geological interest and existing knownmineralisation at Kyte. Closer spaced drilling on surrounding cross sections and follow up diamond drillingmaybe required to further delineate the extent, size and geometry of some areas within the identified zonesof gold mineralisation. |
| Drill spacing and drill technique is sufficient to establish the degree of geological and grade continuityappropriate for the mineral resources and ore reserve estimation procedures and classifications appliedhowever the mineralised system remains open and additional infill or deeper drilling maybe required toclose off and confirm the full extent of the ore body, particularly at depth. | |
| Orientationof | The sheared Mertondale greenstone sequence displays a NNE to North trend. The tenement package iscontiguous; the drilling and sampling programme was designed to provide, as best as practicable, anunbiased location of drill sample data. |
| data inrelationto geological | The chance of sample bias introduced by sample orientation is considered minimal. No orientation samplingbias has been identified in the data thus far. |
| structure | The vast majority of historical drilling and this campaign (KY17RC001-067) are orientated at 250°/-60°. |
| Gold mineralisation at Kyte Reward occurs in weathered, oxide mafic and felsic sequences. Goldmineralisation comprises flat lying shallow dipping zones related to supergene gold enrichment. The blanketof supergene mineralisation cuts across all lithologies. The deposit is deeply weathered. Originally thedeposit was Aircore drilled on a 20m x 40m grid pattern by Navigator Resources. Kin Mining have infilled thegrid pattern with RC drilling also on a nominal 20m x 40m grid, drilling in between the existing Navigatordrill pattern. | |
| Samplesecurity | Samples were collected daily in the field and stored overnight in a secure lockable location in Leonora. Uponcompletion of several drill holes batches of samples were transported to Kalgoorlie by an SGS transportcontractor. The samples were then stored at their lab in a secure lockable building. Samples are checkedagainst the field manifest, sorted and prepared for assay. Samples were then assayed under the supervisionof SGS at their Kalgoorlie laboratory. Once in the laboratories possession adequate sample security |
| Criteria | Commentary |
|---|---|
| measures are utilised. | |
| Audits orreviews | Sampling methodologies and assay techniques used in this drilling programme are considered to be mineralexploration industry standard and any audits or reviews are not considered necessary at this particularexploration stage. No audits or reviews have been conducted at this stage apart from internal reviews andfield quality control. |
TABLE 1 Section 2 - Reporting of Exploration Results
| Criteria | Commentary |
|---|---|
| Mineraltenement andland tenurestatus | The RC drill programme was conducted on the Kyte prospect on tenement M37/227; the general area isreferred to as Cardinia. The tenements are held in the name of Navigator Mining Pty Ltd, a wholly ownedsubsidiary of Kin Mining NL. The tenements are managed, explored and maintained by Kin Mining NL. Thetenements drilled represent a small portion of the larger Cardinia-Mertondale Project (300sqkm) whichhosts the 721,000oz Leonora Gold Project (LGP) Resources. The tenements are located within the Shire ofLeonora in the Mt Margret Mineral Field in the centre of the North Eastern Goldfields. The Cardinia ispositioned approximately 30km ENE of Leonora. |
| There is no known heritage or environmental impediments over the holding. | |
| Explorationdone byother parties | The Cardinia deposits have been extensively drilled by a number of companies including Mt Edon, SGWand in more recent times Navigator. A review of the collar file reveals the following companies Navigator(NAV), NR (Normandy Resources?), MET, SGW (Sons of Gwalia), CIM, AZT (Aztec), HLM (Harbour Lights)have all contributed to various drill programmes, however the vast majority of exploration was conductedby Navigator. A test parcel of ore was mined by NAV from the nearby Bruno pit (100,000t) grade andrecoveries exceeded expectations. Navigator commissioned Runge Limited to complete a MineralResource estimate for the Cardinia deposit in January 2009. |
| Drilling has been conducted in the immediate area surrounding the Kin drill holes by Navigator. The database has been interrogated and scrutinised to a level where the LGP gold resources are JORC 2012compliant (ASX announcement 11th May 2015). Visual validation, using 3D software, has been conductedas well as cross referencing with historic reports. Mineralisation between cross sections is cohesive androbust, suggesting that the data is valid. | |
| Geology | The regional geology comprises a suite of NNE-North trending greenstones positioned on the MertondaleShear Zone (MSZ), a splay limb of the Kilkenny Lineament. The MSZ denotes the contact betweenArchaean felsic volcanoclastic and sediment sequences (west) and Archaean mafic volcanics (east).Proterozoic dykes and Archaean felsic porphyries have intruded the altered mafic basalt/felsicvolcanoclastic/sedimentary sequence of the MSZ. |
| The Cardinia Project geology comprises intermediate mafic and felsic volcanic lithologies and locallyderived epiclastic sediments. The regional lithological strike is 345° and contacts dip between 30°-40°W,foliations tends to dip moderately to the east. | |
| Gold mineralisation at Cardinia comprises flat lying, shallow dipping zones of supergene gold enrichmentin weathered regolith. The mineralisation truncates all lithologies without any obvious effects. The centralarea is dominated by strongly weathered NW trending basalts with intercalated beds of felsic rocks andminor shales. | |
| Gold distribution is highly variable resulting in very closely spaced drilling being required to confidentlydelineate the mineralised zones. Primary gold mineralisation is associated with increased shearingassociated with lithological contacts between mafic and felsic rocks. Disseminated carbonate-sericitequartz-pyrite alteration zones are adjacent to the gold mineralisation. | |
| At Bruno/Lewis and Kyte virtually all the known gold resources are associated with flat lying, shallowdipping zones of supergene Au enrichment interpreted to be related to supergene gold enrichment.Interpretation of cross sections reveals a series of mineralised structures evident as quartz-ironstoneveining and quartz outcrop |
| Criteria | Commentary |
|---|---|
| Drill holeInformation | The location of all drill hole collars is presented as part of the significant intersection table in the body ofthis report. Significant down hole gold intersections are presented in the table of intersections. All holedepths refer to down hole depth in metres. All hole collars are surveyed and MGA94 Zone51 DGPSpositioned. Elevation (R.L.) is recorded as part of the surveyed collar pick up. Drill holes are measuredfrom the collar of the hole to the bottom of the hole. |
| Data | No averaging of the raw assay data was applied. Raw data was used to determine the location and widthof gold intersections and anomalous gold trends. Geological assessment and interpretation was used todetermine the relevance of the plotted intersections with respect to the sampled medium. |
| Aggregationmethods | Individual grades are reported as down hole length weighted averages. Only RC intersections greater thanor close to 0.4g/t are regarded as significant. Anomalous intersections are tabled in the body of this report.Reported mineralised zones have a cut-off grade of 0.4g/t Au and no more than 2m of internal dilution(<0.1g/t Au). |
| No top cuts were applied to any assay values. | |
| RelationshipBetweenMineralisationwidths andinterceptlengths | The Drilling at Kyte was on an Azimuth of 250° and an angle of -60°. The drill hole orientation may not beat an optimal angle to the flat lying nature of the supergene mineralisation however the holes areorientated in the same direction as the historic Navigator drilling. As a result the reported intersectionsmay not represent true widths. Reported mineralised intercepts are within the confines of the existinggold resource envelope however they have not yet been incorporated into the current parameters of theKyte Inferred resource calculation. The maximum and minimum sample width within the mineralisedzones is 1m. |
| Diagrams | A relevant "type example" plan is included in this report. |
| BalancedReporting | Detailed assay results are diagrammatically displayed and tabled in this report. Only the significant goldresults are discussed and reported.The available historic database includes a large inherited data set compiled by previous project ownersdating back to 1982. There are limitations in the amount of information provided in the data set. It has |
| not been possible to fully verify the reliability and accuracy of portions of the data however it appearsthat no serious problems have occurred and validation check results were within acceptable limits. Ingeneral the recent data is more reliable than historic data. Most of the historic drilling at Kyte wasconducted by Navigator Resources. | |
| Considering the complex history of grid transformations there must be some residual risk in convertingold local grids to GDA94 although generally the survey control appears to be accurate and satisfactory. | |
| In the case of the existing LGP resource calculation there is always an area of technical risk associated withresource tonnage and grade estimations. | |
| OtherSubstantiveexplorationdata | Regarding the results received no other substantive data is currently considered necessary. All meaningfuland material information is or has been previously reported |
| Further work | The potential to increase the existing resource is viewed as probable, however committing to further workdoes not guarantee that an upgrade in the resource would be achieved. Kin Mining intend to drill moreholes at Kyte with the intention of increasing the Cardinia resources and converting the Inferred portionsof the resources to the Indicated category. |