Name and Location
Leonora gold project, Australia.

Client
Kin Mining.

Project Description
The project comprises the Mertondale, Cardinia and Raeside areas in the Mt Margaret mineral field, in the centre of the Eastern goldfields.

A scoping study has shown that it could produce an estimated 315 600 oz of gold over a seven-year project life.
It envisages a standard truck-and-shovel configuration.

At peak production, two separate fleets will operate – a 100 t excavator (Komatsu PC1250 or similar), paired with 90 t rigid body dump trucks (Cat 777 or similar); and a smaller 75 t excavator (Cat 374 or similar), paired with 40 t articulated trucks (Cat 740 or similar).

The larger mining fleet will operate in the large, but simple-to-mine, pits of Mertondale 3/4, Mert’s Reward, Tonto, Eclipse and Michelangelo/Leonardo.

The smaller mining fleet will be used in the remaining mining areas, which are narrow (entire mining area or cutback) in nature.

Once on site, there might be adequate flexibility to use either fleet in a particular area to produce the best outcome, such as prestripping waste with the larger fleet, or using the smaller fleet to recover ounces at the base of the larger pits.

Processing will start two months after mining to allow for a build-up of stockpiles. At steady-state production, the processing plant will run at a throughput rate of one-million tonnes a year.

The operation is expected to deliver 30 500 oz of gold in its first year of operation, peaking at 65 800 oz in Year 5 of operation and declining to 10 500 oz in its final year.

Net Present Value/Internal Rate of Return
Based on a gold price of AS1 500/oz, the project will have a net present value of A$56.3-million and an internal rate of return of 30%, with a payback of 45 months.

Value
An estimated A$55-million will be required to complete the project.

Duration
Not stated.

Latest Developments
The scoping study has indicated that refining of the mining fleet and scheduling could have value-add implications for the project.
Kin Mining is considering ways to deliver the best outcome for the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kin Mining, tel +61 8 9242 2227 or email info@kinmining.com.au.