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Leonora gold project, Australia

9th February 2018

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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 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 been cleared to start construction of the process plant at its Leonora gold project, with the Department of Mines, Industry Regulation and Safety having approved the mining proposal and the Department of Water and Environmental Regulation the works approval for Leonora Phase 1.

The decision to conduct a phased approvals process for the project has allowed for the construction of the processing plant to start earlier than initially planned.

Applications for Phase 2 approvals, which cover the balance of activities required to start gold production, will be lodged in the first half of 2018.

Kin will now focus on dismantling and relocating the Lawlers process plant and starting construction at Leonora.
 
Key Contracts and Suppliers
Gold production remains on schedule for the second half of 2018.

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.
 
 
 

Edited by Creamer Media Reporter

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