Name of the Project
Leonora gold project (LGP).

Location
The project is located in the North-Eastern goldfields of Western Australia.

Client
Kin Mining.

Project Description
A definitive feasibility study (DFS) has confirmed that the LGP is a technically sound and highly profitable.

The LGP boasts indicated and inferred resources of 22.3-million tonnes grading 1.4 g/t gold for 1.02-million ounces of contained gold, and a maiden ore reserve of 7.9-million tonnes grading 1.5 g/t for 373 000 oz.

Development is based on three openpit mining centres:
• Cardinia (mainly oxide and transitional ores), which comprises the Bruno-Lewis Link, Lewis, Kyte, Helens and Rangoon deposits;
• the Mertondale area, which comprises the Mertons Reward (transitional and fresh ores), Mertondale 3-4 (oxide, transitional and fresh ores) and Tonto (transitional ore); and
• the Raeside deposits of Michelangelo and Leonardo (transitional and fresh ores).

These deposits will supply a 1.5-million-tonne-a-year conventional carbon-in-leach (CIL) processing plant, centrally located at Cardinia.

Kin envisages that all mining will be undertaken by owner-miner operators using equipment supplied and maintained by a contract mining equipment supplier. 

All drill, blast and grade-control activities will be undertaken by contractors. Kin will provide all technical and managerial direction.

The mining strategy is focused on initially delivering oxide and transitional ore sourced primarily from the Cardinia deposits.

Mining operations will include the Mertondale pits in Year 3 and Raeside material in Year 4.

The DFS incorporates the refurbishment and upgrade of the 800 000 t/y Lawlers plant, acquired from Gold Fields this year, to 1.5-million tonnes a year through the installation of a refurbished 2.5 MW ball mill and six new 1 500 m³ CIL tanks. 

The proposed plant incorporates a two-stage crushing circuit feeding the ball mill, with gold extracted by gravity and CIL processes.

The DFS has determined that the LGP can produce an initial 61000 oz in its first full year of production, reaching maximum production of 65 000 oz in Year 7.

Potential Job Creation
The mine is expected to have a permanent workforce of about 64 people.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$107.4-million and an internal rate of return of 77%, with a preproduction payback of 11 months.

Value
The preproduction capital cost is A$35.4-million, which includes 18% in contingencies.

Duration
Plant commissioning and first gold are targeted for the second half of 2018.

Latest Developments
Kin Mining has reported that it is proceeding with the Leonora gold project, with the second half of next year targeted for first gold production.

The decision to mine announcement follows the execution of a credit facility agreed with Sprott Resource Lending group to fully fund the preproduction capital cost of 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.