Name of the Project
Leonora gold project (LGP).

Location
The project is located 30 km north-east of the mining town of Leonora, in Western Australia.

Client
Kin Mining.

Project Description
A prefeasibility study (PFS) completed on the LGP has demonstrated the potential for the project to be a low-risk, high-margin gold producer. The project hosts total mineral resources of 11.8-million tonnes grading 1.9 g/t gold, 74% of which is in the indicated category and 26% in the inferred mineral resource category.

The PFS envisages the mining and on-site treatment of:
• Mertondale, comprising the Mertons Reward, Mertondale 3-4, Tonto, Eclipse and Mertondale 5 deposits;
• Cardinia, comprising the Bruno-Lewis, Lewis South, Kyte and Helens-Rangoon deposits; and
• Raeside, comprising the Michelangelo-Leonardo and Forgotten four deposits.

Ore production from these mining areas is expected to be delivered to a new, centrally located carbon-in-leach (CIL) gold treatment facility at Cardinia. All openpits will be mined using conventional benching using a hydraulic excavator and dump trucks.

A new standalone 750 000 t/y conventional CIL treatment plant is proposed for the LGP, with the capacity to be expanded to an estimated 1.2-million tonnes a year in Year 3.

The proposed plant will incorporate a three-stage crushing circuit feeding a ball mill, a gravity circuit and a CIL circuit, using established technologies.

Tailings will be deposited into the existing Bruno pit (Stage 1), followed by adjacent pits (Stage 2), and then finally into a conventional tailings storage facility, or TSF (Stage 3).

Waste mined as part of the mining cycle from the Bruno-Lewis pits will be used for the construction of the TSF embankment.

A 60-person accommodation camp will be built on site at Cardinia.

The project has an initial mine life of 6.5 years with considerable exploration upside.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of A$71-million and an internal rate of return of 58%, with a payback of about 18 months.

Value
The project has an estimated pre-production capital cost of A$34.6-million, including a 15% contingency.

Duration
First gold production, based on the PFS production forecast, is targeted for mid-2018.

Latest Developments
The feasibility study on the project is expected to be completed by mid-2017, after which board approval will be sought to start construction. Currently, a 17 000 m drill programme is under way to convert inferred mineral resources to the indicated category, and contribute to further metallurgical and geotechnical studies.

Key Contracts and Suppliers
None stated.

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.