Kin Mining to accelerate base metal and gold exploration at Cardinia
Wed April 03 2024
After receiving “encouraging” initial results from follow‐up diamond drilling targeting base metals and gold, Kin Mining NL (ASX:KIN) will accelerate exploration at the Cardinia Gold Project near Leonora in Western Australia.
A 5‐hole, 2,500-metre diamond drilling program was designed to further evaluate the recently discovered volcanic-hosted massive sulphide (VHMS) mineralisation at the flagship project’s Albus prospect with three holes.
The program also included two holes to test deep gold targets at Cardinia Hill and Helens, for which assay results are pending.
Albus results
Preliminary results confirm the potential for an economic base metal discovery with the Albus VHMS horizon intersected in two of the three new holes.
This included a significant new intercept of 1.8 metres at 1.74% zinc, 0.01% copper, 0.39% lead, 28.11 g/t silver and 0.07 g/t gold from 300.2 metres.
Of the four holes drilled into the Albus VHMS prospect to date, three have intersected significant base metal mineralisation, with one hole (AB24DD003) intersecting a fault that is likely to have offset down‐dip extensions of the mineralisation.
Ongoing exploration of the base metal potential continues to generate targets for economic VHMS mineralisation. Geological mapping indicates that the Albus mineralised horizon sub‐crops as a gossan to the south near the Fiona prospect.
A fence of follow‐up drill holes has been planned to intersect this mineralised horizon down‐dip.
Four further favourable horizons have also been mapped and sampled, comprising more than 200 kilometres (parallel lodes) of cumulative strike to test.
Kin Mining executive chairman Rowan Johnston said: “The recent diamond drilling results are very encouraging and have provided further strong evidence of the potential for VHMS style mineralisation at Cardinia, opening up a significant exploration opportunity both along strike and in parallel horizons.
“While they are generally high grade and high‐value, VHMS deposits generally have a small footprint and can be challenging to pin down. However, the fact that we now have drill‐supported evidence of a fertile VHMS environment at Cardinia is a very significant development – and we have an exciting program of follow‐up drilling and geophysics to test these targets for shallow base metal discoveries commencing in the current quarter.
“Meanwhile, a review of the Mertondale gold deposits – located between Genesis Minerals’ Hub immediately to the north and its recently acquired Bruno, Lewis and Kyte deposits to the south – has highlighted an opportunity to further de‐risk and add value to our retained gold resource base of 11 million tonnes at 1.2 g/t.
“This coupled with the recent access developments and the approved Mertondale mining proposal makes this a high priority for Kin moving forward.
“With many projects in the Leonora/Laverton area lacking sufficient scale or funds to be able to advance independently, a cashed‐up Kin is able to review these with the aim of undertaking further M&A or investment.
“We are seeing a general lack of funds for junior miners and exploration companies nationwide and this provides a significant opportunity for Kin at an important point in the commodities cycle.”
Recent geological studies including surface mapping, drill hole re‐logging, geochemical interrogation and geophysical property testing culminated in the identification of five key VHMS target areas which will be drilled from Q2 onwards.
An RC drilling program to 200 metres depth will target the “excellent” gold results received from aircore drilling in 2023, between the Rangoon and Collymore prospects.
Kin still controls the majority of the known gold endowment in the Cardinia area, including 900,000 ounces in resources. Drilling will continue to further delineate and expand the company’s gold resources at Cardinia.
To focus on increasing the value of Kin’s remaining gold assets, the program has been designed to increase the value of the known shallow resources and to discover higher-grade underground resources, under existing resources or areas of known mineralisation.
A budget of more than $3 million has been approved to support the program this year. Kin is well funded with around $86 million in cash and liquid assets.
Source: https://www.proactiveinvestors.com.au/