Well, I take the Quarterly as a scene setter ...and look forward to all those results!
Always happy to be reminded why I'm still here, and Munckton's report actually speaks to quite a bit achieved in the 3 months to June 30: We delivered a further increase in the Mineral Resource at the Cardinia Gold Project to 1.23 million ounces, including a 15% increase in the all-important, higher-confidence Measured and Indicated components to 762,000 ounces. This incorporated the results from earlier drilling programs at the Bruno-Lewis and Hobby deposits
We are now working towards the next Resource update for the CGP scheduled for the September Quarter, which will include the impressive results generated from in-fill and extensional drilling at our developing Cardinia Hill deposit.
Major air-core programs also continued across the project during the quarter targeting the next step-change in growth at the CGP. It’s been really pleasing to see two new areas emerge as early contenders in this regard – Eagle-Crow and Mount Flora.
Eagle-Crow is located just 2km from the centre of the CGP and has revealed early potential for an extensive, shallow gold discovery with striking early-stage similarities to both Bruno-Lewis and Cardinia Hill. At Mount Flora, 20km east of the CGP, shallow air-core drilling intercepted 22m at 8.96g/t Au, rapidly elevating this area to high-priority exploration status.
Our follow-up RC drilling at Eagle-Crow has commenced and our ongoing regional exploration program will also see follow-up AC and RC drilling at Mt Flora, auger and geochemical programs across the Randwick and Murrin prospects and our maiden drilling program at the recently identified Mount Fouracre nickel target.
The objective of the regional program is to systematically test the wide range of exploration opportunities across the Company’s broader tenement holding to determine the potential for new discoveries and emerging satellite opportunities to complement the core 1.23Moz CGP.
On the corporate front, Kin significantly streamlined its future development options for the CGP during the Quarter with the acquisition of the existing 1.5% Net Smelter Royalty (NSR) over the first 100,000oz of gold production. The royalty was owned by Sprott Private Resource Lending and was put in place as part of the previous US$27m financing for the project in 2017.
The acquisition streamlines future development options, enhances project economics and reduces administrative costs for the CGP, with the acquisition cost of US$600,000 cash representing a good outcome for shareholders in the current strong gold price environment.
From our base now of 1.23Moz, I'm hoping for a decent upgrade to the MRE this Quarter ...and plenty of fireworks from results and further drilling.
