Kin Mining NL (ASX:KIN) has reported a notable increase to over 1.5 million ounces in an updated mineral resource estimate (MRE) for the Cardinia Gold Project in Western Australia.
The MRE update has yielded 37.7 million tons of 1.27 g/t gold for 1.54 million ounces of gold trapped within optimized pit shells.
This represents an increase of 134,000 ounces, or 9.5%, in contained ounces from the previous MRE update published in September 2022.
Meanwhile, in Cardinia Eastern Corridor, a first MRE was completed for the Helens East deposit of 1.4 million tons at 1.57 g/t for 70,000 ounces of embedded gold, consolidating a portion of the Fiona deposit.
Continued strong growth
Andrew Munckton, managing director of Kin, said the continued strong growth of the company’s resources reflected the success of the exploration approach in Cardinia, improving geological knowledge and the potential of the new Eastern Corridor area to deliver significantly higher grades. deliver within expanded and optimized pitshells.
“Once again, we delivered solid growth in the Cardinia Gold Project mineral resources with the addition of robust, enhanced-quality ounces from drilling programs in the Eastern Corridor,” he said.
“The initial estimate for the Helens East Deposit, which is close to the Helens Deposit, and the confirmation of a resource between Helens and Rangoon — which now forms a single, semi-continuous deposit — reflects the view that the Eastern Corridor represents an important untapped opportunity for further resource growth.”
The updated MRE includes an additional 5,993 meters of reverse circulation (RC) and 2,473 meters of diamond drilling completed since August 2022, included in updated geologic and mineralization models for Rangoon, Helens, Helens East and Fiona.
This new drilling around the Helens East, Helens and Rangoon deposits within the Eastern Corridor has increased the June 2023 MRE by 134,000 ounces of gold beyond the previous MRE announced on September 17, 2022.
All deposits within the MRE remain open, both during the attack and at depth, with a discovery cost of A$25 per ounce of raw material.
Munckton added: “The program of work over the nine months since the last MRE update has resulted in a 9.5% increase in total ounces, while also increasing the size of the higher quality measured and declared categories by 4.3. % has increased, now a total of 19.5 million tons against 1.38. g/t for 873,000 ounces.
“The company takes a conservative view on mineral resource estimation by limiting the MRE to optimal well shells generated using a gold price of A$2,600 and applying reasonable operating cost assumptions.
“We are extremely pleased to have provided an initial 70,000 ounce MRE for the recently discovered Helens East deposit and a new estimate that aligns with the previously discrete Rangoon and Helens deposits, where we have announced strong drilling results over the past 12 months and see the potential for further growth.”
Cardinia east corridor
The first MRE on Cardinia Eastern Corridor joins the Helens and Rangoon deposits and includes 600 meters of new mineralized strike between previously discrete deposits.
It raised the MRE for the Helens and Rangoon deposits to 5.5 million metric tons at 1.37 g/t gold for 242,000 ounces of trapped gold. An additional 72,000 ounces were estimated as a result of successful expansion drilling programs.
Munckton added: “The Eastern Corridor, home to a number of recent discoveries, has been the main focus of our exploration drilling over the past 12 months and now boasts an impressive resource base totaling 10.4 million tonnes at 1.42 g/ t for 475,000 ounces. of embedded gold.
“This is comparable to the average raw material quality for the Western deposits of about 1.0 g/t.
“The company has a very strong pipeline of exploration targets yet to be assessed at the mineral level, including expansions of existing deposits in the Eastern Corridor and newly identified prospects in other project areas.
“Further work programs are proposed for FY24 to move these exciting prospects to the resource stage.”