Kin Min NL Ltd
Gold Exploration company with the deposit located in WA, Australia.
SOI - 571m
Cash - $2.7m (Jan 4C)
Top 20 - 60% Shareholding
KIN was a gold darling stock a couple of years ago but has suffered a few hurdles, the last of which was Aug/Sep last year when they put their PFS out to the market which somewhat underwhelmed given the low grade (11.4Mt at 1.09g/t Au) / low NPV/IRR (118m NPV & 29% IRR at $2200/oz)
Management and their major shareholders were still supremely confident the high grade gold was evident and they launched a $3.1m placement & rights issue in Oct at 3.5c.
Management were so confident of finding additional success that they bought shares in 10-separate occasions between 21-November and 20-December. Not only participating in the 3.5c placement, but then buying more on market at the on 29-Nov and 20-Dec at 3.8-4.0c - this was the smoke signal right there
Yesterday, management and their top-shareholders faith in the fact the high grade gold was there was validated in spades with a very nice, large, shallow, high grade hit at Comedy King. The hits include: Comedy King
12m at 14.9g/t Au from 4m including 8m at 21.9g/t Au from 8m (CK19AC070)
4m at 8.3g/t Au from 20m to EOH (CK19AC037)
8m at 3.0g/t Au from 8m (CK19AC056)
20m at 2.3g/t Au from 0m (CK19AC113) 12m at 2.7g/t Au from 4m (CK19AC114)
These high grade hits are essentially from the surface - 20m @ 2.3g/t from 0 meters (i.e. get a shovel & dig) and 12m @ 14.9g/t from 4m
There are more results pending from the current drill program from the Lewis East & Lewis West sites which are also prone to high grade hits from their earlier sample work. These are due mid-Feb
Importantly, these new high grade, shallow zones will improve the economics of the PFS by orders of magnitude and it is a complete game changer for the company
The SP reaction yesterday was slow & steady - it kept grinding higher all day on reasonable volume. But over coming sessions I expect that to ramp up in to the next set of results which are expected mid-Feb
