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- Kin Mining (KIN) enters into an earn-in and joint venture agreement with Golden Mile Resources (G88) over 120 square kilometres of exploration tenure located east of Leonora in WA
- The ground is made up of three prospect areas with contiguous tenements which sit adjacent to the company’s flagship Cardinia gold project
- The company says the location is along the same structural corridors which have already yielded significant targets and mineral resources.
- Under the agreement terms, Kin will have the right to acquire an initial 60 per cent interest in the Golden Mile Resources tenements, with the ability to increase to 80 per cent ownership
- Shares closed 4.35 per cent lower today at 11 cents each
Kin Mining (KIN) has entered into an earn-in and joint venture agreement with Golden Mile Resources (G88) over 120 square kilometres of exploration tenure located east of Leonora in WA.
The ground is made up of three prospect areas with contiguous tenements which sit adjacent to the company’s flagship Cardinia gold project. It also consists of regional exploration ground that includes a number of exploration targets to further expand the company’s growth pipeline in the Leonora region.
Under the terms of the three-phase agreement, Kin will have the right to acquire an initial 60 per cent interest in the Golden Mile Resources tenements, with the ability to increase to 80 per cent ownership.
In phase one, Kin must spend at least $250,000 on the JV area within 18 months of commencement before it can withdraw from the agreement.
Kin may acquire a 60 per cent interest if it spends $750,000 on exploration in the area within 36 months of commencement.
After satisfaction of these terms, G88 may elect to form a joint venture with Kin holding a 60 per cent interest, or it may grant Kin the right to progress to stage two.
In stage two, Kin may acquire an 80 per cent interest if it spends $1.25 million on exploration within 36 months of commencement.
G88 may then elect to form a joint venture with Kin holding a 80 per cent interest, or grant Kin the right to form a joint venture.
Stage three consists of standard terms and conditions for JV participation managed by Kin. If a party elects to dilute and their interest falls to 10 per cent then their interest reverts to a net smelter royalty on gold production from the tenements.
As noted in today’s announcement, the tenement is located along the same structural corridors which have already yielded significant targets and mineral resources.
The key targets for the company of G88’s tenements are the Ironstone Well, Monarch, and Normandy.
The company said Ironstone Well has received relatively little modern exploration. Recent exploration results found seven metres 4.16 grams per tonne (g/t) of gold in one hole at the Natasha prospect.
The Monarch project reportedly covers a large area that has seen little modern exploration until recently. Golden Mile Resources recently completed a soil geochemical sampling program and initial drilling of the resulting targets. It lies within the eastern portion of the Mertondale Shear Zone.
The Normandy project is south of the company’s Randwick project. Little modern exploration has been completed in this area but a large number of historical workings exist. A large drainage system obscures the underlying geology and has prevented effective historical exploration and prospecting.
Shares closed 4.35 per cent lower today at 11 cents each.
