Kin exercises option to buy idled Gold Field plant for Leonora - miningweekly.com
JOHANNESBURG (miningweekly.com) – Gold developer Kin Mining has exercised its option to buy the idled Lawlers gold processing plant from Gold Fields’ Agnew mine for A$2.5-million.
The company intends to use the 800 000 t/y plant, which had been on care and maintenance for about two years, at its Leonora gold project, which is located about 160 km by road from the Agnew mine.
Kin announced in April that it had executed an option agreement to purchase the processing plant and was granted an exclusive option agreement.
Kin MD Don Harper said on Friday that the purchase of the plant was a key step towards production at Leonora.
“We continue to generate exceptional drilling results, which highlight immense potential to grow inventory at Leonora and remain on track to complete the Leonora definitive feasibility study in the September quarter of this year,” he commented in a statement.
The company completed a prefeasibility study for Leonora in December, which demonstrated its potential to be a low-risk, high-margin gold project. The mine will have an initial life of 6.5 years, producing 43 000 oz in year one and ramping up to 52 000 oz in year three. The preproduction capital cost was estimated at A$35-million.
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