Kin Mining has reported that construction of its Leonora gold project (LGP) in Western Australia is progressing on schedule.
The company is targeting first production at the proposed 55,000 ounce a year (oz/y) operation in December this year.
According to Kin, construction on the foundations for the carbon-in-leach (CIL) tanks and milling structures has been launched.
It has already completed the foundations for the workshops, with the structure itself now being erected.
Kin interim managing director Trevor Dixon said the move into the construction phase was a positive step-change for the business.
“Having bolstered our technical and leadership capability at a board level, the company is laying the foundations for a positive cash flow business to meet its commissioning and production timeline,” Dixon said.
“The board and on-site personnel are focused to achieve first gold in December 2018.”
As construction of LGP progresses, Kin is continuing to pursue an aggressive drilling campaign at the site. The company has launched RC drilling at the Kyte orebody to extend an indicated resource of 21,000oz of gold.
“Significant exploration is under way on Kin’s highly-prospective tenure, giving an exciting opportunity to grow our project,” Dixon said. “The LGP is a project that, given its favourable economics, is set to be a low-cost gold producer with considerable upside for shareholders.”
The company’s resource at LGP stands at 1.02Moz with a maiden ore reserve of 373,000oz.