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Kin Mining: Scoping study confirms Leonora gold project as economically viable

Kin MiningNL said May 9 that its scoping study on the gold project in WesternAustralia demonstrated "an economically and technically viable projectwith considerable upside."

According to Managing Director Trevor Dixon, "Thisstudy demonstrates to the market that Kin Mining has a genuine likelihood ofbecoming a gold producing company in the near future."

At what the company called the "conservative" basecase of a A$1,500 per ounce gold price, the project is estimated to have a netpresent value of A$56.3 million, a 30% internal rate of return, and a 45-monthpayback period.

The project is expected to generate revenue of A$461.6million. EBITD is estimated at A$87.7 million.

Operating costs and capital costs are anticipated to beA$318.9 million and A$55.0 million, respectively.

C1 cash costs are estimated at A$1,010 per ounce, withall-in sustaining costs at A$1,185 per ounce.

Dixon said that a 10% change in gold's price would result inan about 25% change in outputs. At a gold price of A$1,700 per ounce, netpresent value is estimated to increase to A$105.5 million, with a 48% internalrate of return.

Additionalwork is required to improve the level of confidence in the mineralresource as well as continuing studies and test work related to both mining andprocessing, Kin Mining added.