Name of the Project
Cardinia gold project.

Location
The project is located in the North-Eastern Goldfields of Western Australia.

Project Owner/s
Kin Mining.

Project Description
Cardinia has a probable ore estimate of 7.9-million tonnes grading 1.1 g/t gold for 283 000 oz.

A prefeasibility study (PFS) has demonstrated a technically sound project, underpinned by robust mineral resource and cost estimations, and conservative assumptions that are expected to be readily deliverable.

The project is based on the development of two openpit mining centres at Cardinia and Metrondale, which will feed a 1.5-million-tonne-a-year conventional carbon-in-leach processing plant at Cardinia.

The project will process 11.4-million tonnes at 1.09 g/t gold to deliver 368 000 oz of recovered gold over the 8.2-year life-of-mine.

Kin is confident that potential remains to grow the Cardinia gold project’s mineral resources through the exploration of targets, which present near-mine extensional opportunities within the project area.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at an 8% discount rate, of A$66.8-million and an internal rate of return (IRR) of 17%, before corporate costs. Payback is estimated at 44 months from the start of production, based on a A$2 000/oz gold price.

Based on a A$2 200/oz gold price, the project has an NPV, at an 8% discount rate, of A$118-million and an IRR of 29%, before corporate costs. Payback is estimated at 29 months from the start of production, based on a A$2 200/oz gold price.

Capital Expenditure
The project is estimated at A$76.9-million. This includes the relocation and refurbishment of the Lawlers processing facility (primarily a crushing circuit and 0.6 MW ball mill components), and the refurbishment of the 2.5 MW ANI ball mill at Cardinia. The new components for the plant include the cyclone and gravity circuits, leach tanks (already bought) and the thickener, tails disposal, carbon and elution circuits throughout the remainder of the project’s processing facility.

Planned Start/End Date
Not stated.

Latest Developments
The PFS has shown a clear opportunity to materially improve forecast returns and surplus cash flow by displacing lower-margin ore trucked from Metrondale to Cardinia from Year 3 of the project, with higher-value processing plant feed.

Key Contracts and Suppliers
Independent Metallurgical Operations (metallurgical testwork); Como Engineering (processing plant, water and power infrastructure, including process and plant design, and the dismantling of the Lawlers plant and relocation to Cardinia); CMW Geosciences (tailings storage design and cost estimate); Patterson & Cooke (tailings thickener testwork); Groundwater Development Services (water supply Bummer and Cardinia Creek); Rockwater (hydrogeology and surface water modelling); Stantec subterranean fauna, environmental, waste-rock classification and environmental permitting); Peter O’Bryan (geotechnical assessment openpit mining); Lindsay Dynan (road design and cost estimate); Entech Mining (mining design, optimisations, mine plan and schedule, mine cost estimate and financial modelling, and ore reserve estimate); Jamie Logan, Glenn Grayson & Carras Mining (mineral resource estimates).

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.