15/12/2016 - 11:07

Kin's Leonora costs down to $35m

15/12/2016 - 11:07

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Gold junior KIN Mining has released a pre-feasibility study on its Leonora project with a smaller capital cost estimate than that flagged in a scoping study earlier this year.

KIN Mining's Leonora gold project in Western Australia.

Gold junior KIN Mining has released a pre-feasibility study on its Leonora project with a smaller capital cost estimate than that flagged in a scoping study earlier this year.

Perth-based Kin told the market it would cost $35 million to bring the Leonora gold project into production, with the plan including three open-pit mines and a 750,000 tonnes per annum processing plant.

The processing plant will have capacity for expansion to a 1.2 million tpa operation during the third year of the project’s six-and-a-half year mine life.

The capex is a significant reduction from the $55 million cost flagged in the May scoping study.

The PFS today forecast 6.8mt at 1.5 grams per tonne of gold to be processed, at an all-in sustaining cost of $1,084/oz.

A feasibility study on the project is expected to be completed by mid-next year, with first production targeted for a year after that.

“The study shows that the Leonora project will enjoy low up-front costs which will in turn underpin a low-risk, high-margin operation with a short payback period of 18 months,” Kin chief executive Don Harper said.

“This strategy will enable us to generate early profits and accelerate production while at the same time seeking to grow mine life through an aggressive exploration program.

“The Leonora project offers a low-risk, low capital pathway to gold production in the heart of one of WA’s richest gold mining districts.”

In September, Kin completed a gold mining trial at Leonora, mining about 15,000t and trucking it to a mill in Kalgoorlie.

Kin shares were unchanged at 21.5 cents each at 11am.

 

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