JOHANNESBURG (miningweekly.com) – ASX-listed Kin Mining confirmed on Friday that it was proceeding with the A$35.4-million 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 earlier this week to fully fund the preproduction capital cost of the project.
The Leonora definitive feasibility study estimates that Kin will be able to repay the preproduction capital within 11 months.
The mine, located in the North-Eastern goldfields region of Western Australia, is forecast to generate A$596.1-million in revenue over its seven-year operating life. The operation will produce 372 000 oz of gold in this time, averaging 55 000 oz/y.
Leonora has an ore reserve of 7.9-million tonnes, grading 1.5 g/t gold.
“We are embarking on a very exciting growth journey. We have a clear pathway to cash flow, along with an aggressive exploration programme planned for 2018,” said chairperson Trevor Dixon.
Edited by: Creamer Media Reporter
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