Junior gold explorer Kin Mining has turned up significant results from its maiden drilling campaign at the historical Merton’s Reward site near Leonora.
A high grade intersection at 59 metres was discovered with 5 metres at 7.99 grams per tonne, while a higher intersection revealed one metre at 24.7 grams per tonne.
One of two reverse circulation holes at the T1 target, MR15RC001 confirmed broad mineralisation below the level of historic workings.
A statement from Kin Mining said the campaign at Mertondale was considered a success as the target zones were intersected as modelled, not only confirming the geological model but also indicating that the Merton’s Reward lode extends further to the east than previously expected.
Assay results are due next week for samples taken from the T2 target drilled at Merton’s Reward, which is an extension of the main ore feed during production in the early 20th Century.
Historically, Merton’s Reward was one of the highest grade deposits in the Eastern Goldfields, producing a total of 90,000 tonnes at an average grade of 21 grams per tonne, equating to 60,524 ounces.
Kin managing director Trevor Dixon said the results were extremely encouraging, and that he was excited at the prospect of assay results yet to come from T2 and T3 targets.
“Intersecting five metres of almost eight grams, at a vertical depth of 50 metres is very encouraging,” he said.
“Furthermore we are seeing mineralisation at depths below the historic Merton’s Reward underground working and further north than previously expected which is an interesting development.
“The mineralisation is correlating with predicted target zones and confirms the new geological model is robust and will be used to target future drill campaigns.”
Kin recently raised $1.17 million from the shortfall of a share purchase plan priced at $0.10, and traded as high as $0.16 through November, now back down to $0.09 with an additional 6.4 million shares to place.
Kin is expected to begin excavation at the nearby Bruno-Lewis resource in first quarter 2016, with all-in sustaining costs of around $1000 per ounce.
Gold is currently trading at $1466 per ounce, down from nearly $1500 last week.