Australian gold hopeful Kin Mining NL is modeling itself on Northern Star Resources Ltd., particularly after the same institutional shareholder that took a stake in the ASX-listed mid-tier producer has also taken a liking to Kin.
North American fund Dynamic took a stake in Kin about three months ago.
"Dynamic has taken a major stake in Northern Star and now they have come on market and taken a position in Kin as an early mover because they recognize the potential of this company, where it could possibly go, and they want to get in early," Managing Director Don Harper told delegates Aug. 30 at the Mining Resources Convention in Brisbane, Australia. "So we hope to obviously emulate something like Northern Star, but we will start modestly and work our way up."
Kin brought in Harper as CEO about a year ago and appointed him managing director in January, at the same time naming David Sproule nonexecutive director, as it works to take the Leonora gold project in Western Australia through to production.
"Our aspirational target is to join the mid-tier Australian gold producers," Harper said.
Kin announced just prior to Harper's presentation at the Mining Resources Convention that it has boosted its resource for the Leonora project to over 1 million ounces of gold, marking a 42% increase over the prior resource estimate.
According to Kin, 75% of the 22.3 million tonnes at 1.43 g/t gold resource is now in the higher confidence indicated category.
The increase came on the back of the recently completed 43,000-meter reverse circulation drilling program. Harper noted that there is still strong potential to extend known resources, predominantly supergene at present, but there is also significant potential for primary high-grade mineralization.
Kin expects to complete a definitive feasibility study and release a maiden reserve in the September quarter. The company's game plan is to be in production by late 2018.
Kin recently bought a processing plant from Gold Fields Ltd.'s Agnew/Lawlers operation, located 160 kilometers from the Leonora project, for A$2.5 million, with production to start at a rate of 800,000 tonnes per annum.
The company also acquired an option to buy a 2.5-MW ball mill to eventually expand production to 1.2 mtpa.