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KIN Mining NL (ASX:KIN), a gold development and exploration company in Western Australia, operates a 100% owned Leonora Gold Project (LGP) in the same region having more than +1Moz gold resource (JORC 2012 guidelines) already defined in the shallow pits.
Today, the company announced its assay results from the Phase 1 diamond drilling at the Lewis Prospect, a part of LGP, with the discovery of low sulphidation epithermal gold system providing potassic altered basalt and Volcanogenic Massive Sulphide (VMS) mineralization (gold-rich massive and banded sulphides).
The results demonstrated the pathway for an upgraded mineral resource, simplified and expanded Lewis pits and incorporation of the Cardinia process plant system. It also highlighted the great potential for gold deposits associated with Mafic and Felsic volcanic rocks.
VMS and epithermal mineralization features appear to be widespread over 25km with mineralization looking to be strongly associated with bi-modal (alternating Felsic and Mafic) volcanism across the area between Felsic and Mafic rocks where volcaniclastic rocks and sediments develop. Also present within the Cardinia and Mertondale region, Orogenic lode style mineralization is found in the north at Merts Reward, Mertondale 3-4 and in the south at Websters (Quartz hosted vein array system) indicating an extensive and long-lived mineralizing environment taking the project over a strike of more than 35km.
Drilling is almost exclusively Reverse Circulation (RC) and air core with limited drilling into the underlying fresh rock zone below 60 meters. Detailed logging of the Lewis core has identified mineralization styles commonly associated with VMS deposits, low sulphidation epithermal gold deposits and greenstone hosted orogenic gold deposits. The multi-element assemblage that has been assayed to date associated with the gold mineralization and alteration zonation consists of Silver (up to 115 g/t and greater than 1:2 Au:Ag ratio), Copper (up to 0.6%), Tellurium (up to 76 g/t), with minor arsenic, cobalt, sulphur, potassium, molybdenum, lead, antimony, tungsten and zinc.
Seven diamond drill holes (BL18DD013 to BL18DD019) were drilled into the Lewis resource area with all holes getting intersected at a significant gold interval associated with sulphide mineralization, in a variety of geological styles.
Previous metallurgical test work (2017 as part of the LGP DFS) in new rock at Lewis South resulted in a gold recovery in standard CIL conditions of around 80% following high gravity recovery (38%) from a single composite sample. The previous single sample composite encountered sulphide mineralization from both the Au-rich VMS and Epithermal styles of gold and resulted in the low leachability of gold in the composite sample. The current round of metallurgical test work will separate and individually test the differing mineralization styles for their separate metallurgical characteristics. The test work will also provide an initial view of potential LGP treatment plant modifications to optimize recovery through the proposed processing circuit.
Follow up diamond drilling is scheduled to commence in the current week starting 10 December. This drilling will focus on the further definition of the distribution of the various mineralization styles and extending down dip the mineralization within the Lewis pit design, the broader zones of low-grade epithermal mineralization and the deeper, higher grade VMS style mineralization. An additional six diamond holes are planned, with potential for a further five diamond holes to be encountered.
The scrip price has been on a downtrend this year, falling from $0.261 to currently $0.082 (as on December 10, 2018) with almost 69% dip this year with a slim volume.
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