I e-mailed Kin Mining a few weeks ago to raise a few...

I e-mailed Kin Mining a few weeks ago to raise a few questions.
Andrew Munckton replied.
I started off by saying the pre feasibilty study on the CGP project wasn't flash by any means, but we now at least know how it measures up.

Question 1. I asked how much to finish the final feasibility study?



AM's reply was "The PFS just completed contains significantly more detail and test work than a standard PFS. It is is more in line with a DFS than a PFS. The outstanding items include Front End Engineering Design (FEED) from Como Engineers costed at A$700K, more metallurgical testwork of oxide material from Bruno Lewis, submission of the Mining Proposal scheduled for September and a 3 - 6 month period of management of that documents approval and market enquiries from Mining contractors closer to Decision to Mine. While I do not have a defintive cost estimate for this work I would expect it to cost between $1.5 and $2.0 million.The mining proposal is almost complete and will therefore be submitted as scheduled."

Question 2; Is it worth doing at this point in time? Where are we going to get $70 million from to build/errect the plant etc?

AM's reply "The strategy of the Company based on the outcomes of the PFS (remember that the PFS is based on pit designs that yield 11.4Mt at 1.1g/t Au using A$1800 for pit design with with A$2000 gold for the revenue estimate) is that the project would benefit significantly from additional higher grade ore feed particularly in the early years to displace low margin, high cost ounces generated from mining the Mertondale deposits. As such we will defer the DFS/FEED costs until that additional higher grade feed sources are secured."

Question 3 How much money is ear marked for drilling in the next quarter of this year? Mill needs to be higher grade material to be economical.
AM's reply " The two options for securing those additional ore feeds are:

1. Exploration on our 100% owned surrounding tenure.
2. Transaction(s) with other companies in the area that possess those higher margin ounces but are unable to justify development themselves as a stand - alone project.
The Company is considering both those options.

Question 4. Will there be a capital raise this year? We need to get the share price above $0.10 cents or higher to stop massive dilution.

AM's response. "The answers to the other questions regarding expenditure on drilling, capital raise and price are dependent upon the selection of either 1 or 2 or a combination of 1 and 2 above. Please be assured we are mindful of the need to be prudent with the cash we have and to minimise dilution for all shareholders in the pursuit of a project that the market will support."

Hopefully that may you coalboy.