Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

PATRONUS RESOURCES LIMITED Interim / Quarterly Report 2016

Apr 26, 2016

65620_rns_2016-04-26_0d2d1c71-78c9-4094-a38b-39cd7182f3a2.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

27 th April 2016

Board of Directors

TerryGrammer Chairman

Trevor Dixon Managing Director

Fritz Fitton Technical Director

Joe Graziano Non-Executive Director and Company Secretary

Contact Details

Post PO Box 565 Mount Hawthorn Western Australia 6915

Office

342 Scarborough Beach Road Osborne Park Western Australia 6017 r

Phone (08) 9242 2227

Email [email protected]

Website www.kinmining.com.au

Shares on Issue: 77,512.890 Unlisted Options: 14,925.000

ASX: KIN

March Quarterly Activities Report for the period ending March 31st 2016

Kin Mining NL (ASX:KIN) is pleased to present a summary of Quarterly activities for the three months to March 31st 2016.

HIGHLIGHTS

  • Evaluation of drill targets at Gwalia South complete and Phase 1 RC drill plan finalised.
  • Metallurgical and leaching test work commences on Lewis RoM (Run of Mine) ore parcels.
  • Commencement of Leonora Gold Project (LGP) Feasibility Study.
  • Drill confirmation of the Geological Model at Mertondale.
  • Evaluation of November 2015 drilling at Mertondale complete.
  • Follow up deep RC drilling for T1 (Merton's Reward) and T2 (Mertondale 2) at Mertondale planned to commence in the second Quarter.
  • EIS applications for Gwalia South and Mertondale submitted to DMP.

GWALIA SOUTH

Gwalia South comprises tenements P37/8504, P37/8500 and E37/1203. The prospective Gwalia Mine sequence (Gwalia slate/chert) and the Tower Hill (granite/ultramafic) contact lithologies that extend south into the Project area have been subject to an extensive exploration targeting exercise.

Target definition studies focused on multiple north-west (310°) orientated structural displacements that truncate the Leonora greenstone sequence. These faults are interpreted as the controlling structures that represent the fluid pathway plumbing system responsible for localising gold mineralisation in the Leonora district.

Drill targets and the positioning of drill holes have been finalised over accessible areas at Gwalia South (Figure 2). There are no significant gold mines along this southern section of the prospective Gwalia corridor due to lack of outcrop and ineffective exploration techniques (Figure 1).

Several high priority structural drill targets have been identified at Gwalia South currently rig access is limited to approximately 15-20% of the holding due to coverage by restricted DAA cultural and heritage area. Kin plan to investigate the available ground with an upcoming RC drill programme.

Figure 1 Typical cross section (6795600mN) highlighting the shallow poorly targeted historical drilling across the prospective ultramafic and mafic volcanic sequence that host the Sons of Gwalia mine.

Figure 2 Geological plan displaying RC drill hole locations and the mine sequence extensions cutting through E37/1203. Blue outline indicates accessible areas. Gwalia South target approximates to section 6795600mN

Both Gwalia and Tower Hill style targets have been selected as drill targets for this drill campaign.

A Reverse Circulation (RC) drilling programme has been designed, nominally 1,600 metres, consisting of eleven RC holes (-60°/265°) over two drill traverses approximately 2.3km apart drilling to depths of +150 metres.

Historic drilling failed to intersect the north-west faults and existing shallow holes have not been drilled completely through the prospective lithological contacts, the greenstone sequence remains prospective, inadequately tested along strike and untested at depth (Figure 1).

An EIS Government co-funded exploration drilling application to aid in drill costs for the upcoming drill programme has been submitted to DMP with an outcome expected next Quarter.

LEWIS TRIAL OPEN PIT

Progress continues at the Bruno-Lewis supergene deposit with finalisation of the geotechnical assessment and completion of five test pits within the confines of the planned Lewis open cut to secure Run of Mine (RoM) ore for leaching and metallurgical testwork.

The open pit mine area has been marked out, survey control points identified and clearing of the mining area (Lewis East pit) will commence this Quarter.

Figure 3 Cross section view of NW face of test pit at Lewis West; pegs are spaced at one metre intervals, pit is five meters deep, one metre channel sample results are pending

Small scale vat leach test work has commenced and percolation results received to date are positive. The Lewis trial mining and leaching operation is viewed as a Research and Development project to assess the opportunity for a low start-up cost open cut mining exercise that will effectively test a portion of the larger Bruno-Lewis-Kyte supergene resource (3,398,000t @ 1.3g/t Au for 139,400 oz) and the economic viability of extracting and processing the ore.

The Cardinia Resource is an integral asset of the overall JORC 2012 Gold Resources of the Leonora Gold Project 11.825Mt @ 1.9 g/t Au (722,300 oz Au).

FEASIBILITY STUDY

Kin Mining has engaged Independent consultants (Auralia Mining Consulting), as part of the planned Feasibility Study, on the Leonora Gold Project. Auralia have reviewed the previous company's PFS and deemed it to be within industry standards of the time.

A scoping study, based on Auralia's findings using up to date mining costs and current gold price, is due within the second Quarter. The scoping study is designed to inform the market of the viability of the LGP in preparation for a comprehensive Feasibility Study.

Analysis to date is encouraging and Kin are on track to complete the LGP feasibility study in 2016.

TENEMENT MAINTAINANCE

Several tenements at Murrin Murrin (P39/5176-5180) have been granted an extension of term for four years and two Exploration Licenses at Desdemona (E40/285 and E40/283) have been extended for an additional five years.

Conversion of four tenements located between the Bruno-Lewis and Helens-Rangoon deposits at Cardinia (P37/7264, P37/7891, P37/7893 and P37/7274) have been submitted to the DMP and recommended for approval for conversion into two contiguous Mining Leases.

Statutory reporting requirements to DMP have been lodged.

HIGH GRADE INTERSEPTS AT MERTONDALE

Evaluation of the maiden RC drill programme conducted in the previous Quarter at Mertondale (T1 and T2 targets) has resulted in defining NNE extensions to the Merton's Reward ore body (1,080,000t @ 2.2g/t Au) along strike and at depth. Drilling beneath the Mertondale 2 pit also intersected extensions to the mineralised lode. Both target areas remain open at depth and along strike.

The drill results are now incorporated into the resource model and additional drill targets have been defined. The recent drill programme confirmed the geological model and confirmed the extension to the intershear lodes, the mineralised Mertondale Shear Zone at Mertondale remains open. An EIS application to drill a deep diamond drill hole targeting high grade lode extensions at depth has been submitted to DMP. No deep drilling has taken place beneath the historic underground workings.

Figure 4 Plan view of the Mertondale area with Merton's Reward, Mertondale 2 and Mertondale 3/4 Targets (T1, T2 & T3). Displaying the significant RC intersections returned in November 2015 with maximum gold values plotted against historic drilling. Proposed May drilling will focus on the T1 and T2 target areas.

A 3,500m RC drill programme has been designed to test the strike extensions of the identified mineralisation and test the possibility of a duplication of the lode system at depth. Drill results are expected in the next Quarter.

Significant RC intersections reported previously include:

  • 10m @ 4.16g/t Au from 59m including 5m @ 7.99g/t Au which included 1m @ 24.7g/t Au.
  • 25m @ 0.54g/t Au from 166m including 4m @ 1.65g/t Au.
  • 29m @ 1.35g/t Au from 155m including 10m @ 1.73g/t Au and 7m @ 1.83g/t Au.
  • 10m @ 2.97g/t Au from 205m including 5m @ 5.47g/t Au which included 2m @ 11.94g/t Au.
  • 4m @ 2.36g/t Au from 126m including 1m @ 6.56g/t Au.

Merton's Reward was mined at the turn of last century producing 60,524 oz Au at an average grade of 21g/t Au, making it one of the richest underground gold mines in the Eastern Goldfields. Evaluations of historical records (DMP reports 1899-1905) have provided a unique insight into the mining status at the time and details about the productive lodes from the original underground mining operation.

The majority of historical drilling has focused on the upper half of the mine. The mineralised system has only been partially tested at depth and drill holes >150m deep are rare, there is limited drilling below this depth and potential remains to define extensions to the gold bearing lodes below this level.

Competent Persons Statement

The information contained in this report relates to information compiled or reviewed by Mr. Paul Maher who is a member of the (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 represent this information. Mr. Maher and Mr. Buswell-Smith have sufficient experience which is relevant to the styles of mineralisation and the types of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition of the "JORC Australian code for reporting of Exploration Results, Mineral Resources and Ore Reserves". Both 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.

KIN MINING NL TENEMENT SCHEDULE TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3

20 kms South of Leonora Townsite 45 kms North North West of Leonora
Tenement ID Ownershipat end of Quarter ChangeDuring Quarter Tenement ID Ownershipat end of Quarter ChangeDuring Quarter
E37/1152 100% P37/7175 100%
E37/1156 100% P37/7176 100%
E37/1201 100% P37/7177 100%
E37/1203 100% P37/7194 100%
P37/8500 100% P37/7195 100%
P37/8504 100% P37/7196 100%
E40/283 100% extension applied P37/7197 100%
E40/285 100% P37/7198 100%
E40/323 100% P37/8455 100%
M40/330 100% P37/8458 100%
P37/8350 100% P37/8459 100%
P37/8390 100% P37/8460 100%
P40/1263 100% P37/8461 100%
P40/1283 100% REDCASTLE
P40/1284 100% 65 kms South West of Laverton
P40/1285P40/1286 100%100% Tenement ID Ownershipat end of Quarter ChangeDuring Quarter
P40/1287 100% P39/4550 100%
DESDEMONA IRON KING / VICTORY
20 kms South of Leonora Townsite 45 kms North North West of Leonora
Ownershipat end of Quarter ChangeDuring Quarter Tenement ID Ownershipat end of Quarter ChangeDuring Quarter
100% P37/7175 100%
100% P37/7176 100%
100% P37/7177 100%
100% P37/7194 100%
100% P37/7195 100%
100% P37/7196 100%
100% extension applied P37/7197 100%
100% P37/7198 100%
100% P37/8455 100%
100% P37/8458 100%
100% P37/8459 100%
100% P37/8460 100%
100% P37/8461 100%
100% Tenement ID Ownership Change
100% at end of Quarter During Quarter
100% P39/4550 100%
MURRIN MURRIN P39/4593 100%
50 kms East of Leonora P39/4834 100%
Ownership Change P39/4839 100%
at end of Quarter During Quarter P39/5097 100%
66.66% P39/5098 100%
100% P39/5099 100%
100% P39/5100 100%
100% P39/5101 100%
100% P39/5102 100%
100% P39/5103 100%
100% P39/5105 100%
100% P39/5267 100%
100% extension applied Tenement ID Ownership Change
100% extension applied at end of Quarter During Quarter
MT FLORA P37/7995 100%
50 kms East North East of Leonora P37/7996 100%
Ownership Change P37/7997 100%
at end of Quarter During Quarter P37/7998 100%
Tenement ID Ownership Change
at end of Quarter During Quarter
P37/7171 100%
Ownership Change P39/4839 100%
Tenement ID at end of Quarter During Quarter P39/5097 100%
M39/279 66.66% P39/5098 100%
P39/4913 100% P39/5099 100%
P39/4914 100% P39/5100 100%
P39/4915 100% P39/5101 100%
P39/4916 100% P39/5102 100%
P39/4980 100% P39/5103 100%
P39/5112 100% P39/5105 100%
P39/5113 100% P39/5267 100%
P39/5164 100% RANDWICK
P39/5165 100% 45 kms North East of Leonora
P39/5176 100% extension applied Tenement ID Ownership Change
P39/5177 100% extension applied at end of Quarter During Quarter
P39/5178 100% extension applied P37/7283 100%
P39/5179 100% extension applied P37/7284 100%
P39/5180 100% extension applied P37/7806 100%

50 kms East North East of Leonora P37/7996 100%

Tenement ID at end of Quarter During Quarter P37/7998 100%
P39/4617 100% P37/7999 100%
P39/4618 100% P37/8000 100%
P39/4619 100% P37/8001 100%
P39/4620 100%
P39/4621 100% MERTONDALE
P39/4912 100% 35 kms East & North East of Leonora Townsite
P39/4960 100% Ownership Change
P39/4961 100% Tenement ID at end of Quarter During Quarter
P39/5181 100% P37/7171 100%
P39/5182 100%
P39/5183 100%
P39/5185 100%
P39/5463 100%

NAVIGATOR MINING PTY LTD TENEMENT SCHEDULE (a wholly owned subsidy of Kin Mining NL)

TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3

CARDINIA / MERTONDALE CARDINIA / MERTONDALE

35 kms East & North East of Leonora Townsite 35 kms East & North East of Leonora Townsite
TenementID Ownershipat end of Quarter ChangeDuring Quarter Tenement ID Ownershipat end of Quarter ChangeDuring Quarter
L37/106 100% P37/7665 100%
L37/127 100% P37/7666 100%
L37/128 100% P37/7667 100%
L37/195 100% P37/7668 100%
L37/196 100% P37/7669 100%
L37/65 100% P37/7670 100%
M37/1284 100% P37/7671 100%
M37/223 100% P37/7672 100%
M37/227 100% P37/7673 100%
M37/231 100% P37/7674 100%
M37/232 100% P37/7675 100%
M37/233 100% P37/7697 100%
M37/277 100% P37/7698 100%
M37/299 100% P37/7699 100%
M37/300 100% P37/7700 100%
M37/316 100% P37/7701 100%
M37/317 100% P37/7702 100%
M37/422 100% P37/7703 100%
M37/428 100% P37/7704 100%
M37/487 100% P37/7705 100%
M37/594 100% P37/7706 100%
M37/646 80% P37/7707 100%
M37/720 100% P37/7708 100%
M37/81 100% P37/7711 100%
M37/82 100% P37/7712 100%
M37/86 100% P37/7713 100%
M37/88 100% P37/7714 100%
P37/7241 100% P37/7715 100%
P37/7242 100% P37/7716 100%
P37/7243 100% P37/7736 100%
P37/7244 100% P37/7737 100%
P37/7245 100% P37/7738 100%
P37/7246 100% P37/7756 100%
P37/7247 100% P37/7757 100%
P37/7248 100% P37/7758 100%
P37/7249 100% P37/7759 100%
P37/7250 100% P37/7760 100%
P37/7251 100% P37/7761 100%
P37/7252 100% P37/7805 100%
P37/7253 100% P37/7891 100% Conversion MLA37/1303
P37/7254 100% P37/7892 100%
P37/7255 100% P37/7893 100% Conversion MLA37/1303
P37/7256 100% P37/7953 100%
P37/7257 100% P37/7954 100%
P37/7258 100% P37/7969 100%
P37/7259 100% P37/7970 100%
P37/7260 100% P37/7971 100%
P37/7261 100% P37/7972 100%
P37/7262 100% P37/7973 100%
35 kms East & North East of Leonora Townsite 35 kms East & North East of Leonora Townsite
TenementID Ownershipat end of Quarter ChangeDuring Quarter Tenement ID Ownershipat end of Quarter ChangeDuring Quarter
L37/106 100% P37/7665 100%
L37/127 100% P37/7666 100%
L37/128 100% P37/7667 100%
L37/195 100% P37/7668 100%
L37/196 100% P37/7669 100%
L37/65 100% P37/7670 100%
M37/1284 100% P37/7671 100%
M37/223 100% P37/7672 100%
M37/227 100% P37/7673 100%
M37/231 100% P37/7674 100%
M37/232 100% P37/7675 100%
M37/233 100% P37/7697 100%
M37/277 100% P37/7698 100%
M37/299 100% P37/7699 100%
M37/300 100% P37/7700 100%
M37/316 100% P37/7701 100%
M37/317 100% P37/7702 100%
M37/422 100% P37/7703 100%
M37/428 100% P37/7704 100%
M37/487 100% P37/7705 100%
M37/594 100% P37/7706 100%
M37/646 80% P37/7707 100%
M37/720 100% P37/7708 100%
M37/81 100% P37/7711 100%
M37/82 100% P37/7712 100%
M37/86 100% P37/7713 100%
M37/88 100% P37/7714 100%
P37/7241 100% P37/7715 100%
P37/7242 100% P37/7716 100%
P37/7243 100% P37/7736 100%
P37/7244 100% P37/7737 100%
P37/7245 100% P37/7738 100%
P37/7246 100% P37/7756 100%
P37/7247 100% P37/7757 100%
P37/7248 100% P37/7758 100%
P37/7249 100% P37/7759 100%
P37/7250 100% P37/7760 100%
P37/7251 100% P37/7761 100%
P37/7252 100% P37/7805 100%
P37/7253 100% P37/7891 100% Conversion MLA37/1303
P37/7254 100% P37/7892 100%
P37/7255 100% P37/7893 100% Conversion MLA37/1303
P37/7256 100% P37/7953 100%
P37/7257 100% P37/7954 100%
P37/7258 100% P37/7969 100%
P37/7259 100% P37/7970 100%
P37/7260 100% P37/7971 100%
P37/7261 100% P37/7972 100%
P37/7262 100% P37/7973 100%

CARDINIA / MERTONDAL CARDINIA / MERTONDAL

35 kms East & North East of Leonora Townsite 35 kms East & North East of Leonora Townsite
Tenement Ownership Change Ownership Change
ID at end of Quarter During Quarter Tenement ID at end of Quarter During Quarter
P37/7263 100% P37/7974 100%
P37/7264 100% Conversion MLA37/1303 P37/7975 100%
P37/7265 100% P37/7976 100%
P37/7266 100% P37/7977 100%
P37/7267 100% P37/7978 100%
P37/7268 100% P37/7979 100%
P37/7269 100% P37/8007 100%
P37/7270 100% P37/8057 0% Expired 29/03/2016
P37/7271 100% P37/8196 100%
P37/7272 100% P37/8199 100%
P37/7273 100% P37/8209 100%
P37/7274 80% Conversion MLA37/1304 P37/8210 100%
P37/7275 80% M37/1303 0% Tenement Application
P37/7276 80% M37/1304 0% Tenement Application
P37/7277 100%
P37/7655 100% RAESIDE
P37/7656 100% 8 kms East of Leonora Townsite
P37/7657 100% Tenement ID Ownership Change
P37/7658 100% at end of Quarter During Quarter
P37/7659 100% M37/1298 100%
P37/7660 100% E37/1103 100%
P37/7661 100% E37/868 100%
P37/7662 100% L37/125 100%
P37/7663 100% L37/77 100%
P37/7664 100%
TenementID Ownershipat end of Quarter ChangeDuring Quarter Tenement ID Ownershipat end of Quarter
P37/7263 100% P37/7974 100%
P37/7264 100% Conversion MLA37/1303 P37/7975 100%
P37/7265 100% P37/7976 100%
P37/7266 100% P37/7977 100%
P37/7267 100% P37/7978 100%
P37/7268 100% P37/7979 100%
P37/7269 100% P37/8007 100%
P37/7270 100% P37/8057 0%
P37/7271 100% P37/8196 100%
P37/7272 100% P37/8199 100%
P37/7273 100% P37/8209 100%
P37/7274 80% Conversion MLA37/1304 P37/8210 100%
P37/7275 80% M37/1303 0%
P37/7276 80% M37/1304 0%
Tenement ID Ownershipat end of Quarter ChangeDuring Quarter
M37/1298 100%
E37/1103 100%
E37/868 100%
L37/125 100%
L37/77 100%