Kin Mining NL eyes acquisition of processing plant for gold mine - Proactiveinvestors Australia
Kin Mining NL (ASX:KIN) has signed an exclusivity agreement in respect to acquiring the Lawlers processing plant from Gold Fields Limited.
The plant would be ideal for use at the flagship Leonora Gold Project in Western Australia where the company is planning on annual production of 45,000-50,000 ounces of gold.
The exclusivity agreement allows Kin time to conduct due diligence and a technical review of the plant.
Discussions concerning a sale price will take place upon successful completion of the due diligence.
Kin recently started an extensive infill drilling program aimed at further upgrading the 722,000 ounce gold resource at Leonora.
The key terms of the exclusivity agreement are:
- Kin has agreed to pay Gold Fields $100,000 as a non-refundable fee for the exclusivity rights;
- The exclusivity fee will form part of the purchase price; and
- Kin will have 120 days to conduct exclusive due diligence and negotiate a sale and purchase agreement.
Kin is an emerging gold development company with a significant tenement portfolio in the Eastern Goldfields of Western Australia.
The immediate focus of the company is completing an updated pre-feasibility study at its flagship Leonora gold project, which it is now finalising.
The company recently poured its first gold in Kalgoorlie as part of the company’s trial mining program at the Lewis deposit within the Leonora Gold Project.
The Lewis trial mine and carbon-in- leach (CIL) test work produced 908 ounces of gold bullion, which exceeded expectations of ounces mined by 26%.
The recently commenced 10,000 metre infill drilling program will focus on the Mertondale, Raeside and Cardinia deposits at Leonora, which is designed to upgrade the Inferred portion of the resources contained in the proposed Leonora Gold Project Mine Plan to the Indicated category.
An expanded Indicated Resource will underpin the definitive feasibility study on the Leonora Project.
Acquisition of the Lawlers processing plant has the opportunity to provide Kin with a cost effective processing solution at Leonora.
The plant has a capacity of circa 800,000 tonnes a year making it potentially ideal for use at the proposed gold mine.
With drilling in progress and a second phase of 7,000 metres of reverse circulation drilling planned, Kin will remain leveraged to exploration upside over the coming months.
Shares are trading up over 165% year to day, currently priced at $0.265.
Back to previous page