Gold developer Kin Mining has officially decided to mine its Leonora project in Western Australia.
Kin completed a definitive feasibility study (DFS) for Leonora in October and announced project funding through Canada’s Sprott Private Resource Lending this week.
The DFS outlined pre-production costs of $35.4 million with a capital payback period of 11 months.
Kin expects to commission the operation’s plant and deliver first gold from Leonora in the second half of 2018.
Trevor Dixon, Kin chairman, said the decision to mine followed the $35 million credit facility agreement with Sprott to fund the pre-production costs.
“We are embarking on a very exciting growth journey,” Dixon said. “We have a clear pathway to cashflow, along with an aggressive exploration program planned for 2018.”
Once developed, the Leonora operation has been forecast to produce around 55,000 ounces of gold a year.