Ann: Annual Report to shareholders, page-2

From the Chairman's Letter:


We believe that high-quality Resource inventory, located in the heart of the Tier-1 Leonora-Laverton region – together with the untapped exploration upside within our large 657 square kilometre strategic ground-holding – will ultimately be the key drivers of value for our shareholders.

In this regard, in July we welcomed ASX-200 listed gold miner, St Barbara Limited as a significant shareholder with a 19.79 per cent holding, acquired from one of our founding shareholders, Harmanis Holdings.

St Barbara is a well-regarded Australian-based gold producer with operations located 40km from the CGP. Their Leonora Province Operations include the Gwalia underground mine and 1.2Mtpa processing facility, located within economic haulage distance of our main deposits.

We are looking forward to working with St Barbara to further grow the Cardinia Gold Project. We can understand the strategic interest of St. Barbara in our company, given our extensive Mineral Resource, exploration potential, and commercial proximity to their Leonora Operations and welcome them as a supportive investor. We also see other surrounding ore processing operations within our area and remain focused on the best commercial outcome for all involved, not least of which are our longstanding shareholders.

With this in mind, as this report was being finalised we had just embarked on our Phase 5 drilling program at the CGP, and also lodged applications for mining approvals for our first open pit development at Cardinia – demonstrating that we are moving towards a position of operational readiness.

We were also pleased to complete the acquisition of the 1.5% Net Smelter Royalty (NSR) over the first 100,000 ounces of gold production from the CGP. The NSR, which was held by Sprott Private Resource Lending, had been put in place as part of the original 2017 project financing package for the CGP. The royalty has been assigned to a Kin Mining entity, meaning it can be utilised in the future if required as part of our potential development arrangements.

The NSR acquisition price of US$600,000 cash, represented approximately 22 per cent of the royalty’s face value, delivering a very good outcome for shareholders, with the acquisition significantly streamlining our future development options for the CGP.

In closing, the past 12 months have laid the foundations for Kin Mining to move to the next level at the CGP, with the expected delivery of successive Mineral Resource updates over the course of FY2022, as well as ongoing drilling to deliver new near-mine and regional discoveries in the Leonora district.

These programs will underpin the Company’s transition from explorer to developer and ultimately to gold producer.


It has felt glacial but ...can it truly be?!! ..forward movement at last.