Kin Mining NL (ASX:KIN) has some high quality exploration targets at its Gwalia South Prospect, which sits just 2.5 kilometres south of St Barbara's (ASX:SBM) seven million gold ounce Sons of Gwalia mine.
St Barbara produced 72,388 gold ounces from Gwalia mine in the September quarter 2015.
Further to the north-west, the same greenstone package also encompasses the granite-ultramafic lithologies that hosts the Tower Hill (1Moz), Harbour Lights (1Moz), Jasper Flats (165koz), Kailis (50koz) and King of the Hills mines (1.8Moz).
Kin said that a new structural analysis reveals north-west trending thrust faults have a controlling effect on large scale gold mineralisation along the Gwalia Shear Zone.
Adding to the prospectivity, the Gwalia mine sequence continues south through Kin’s Desdemona tenure and this gold bearing corridor presents as a highly prospective target zone.
Trevor Dixon, Kin Mining's managing director, commented:
“We are very pleased with the progress at the Gwalia South Prospect.
"The geological team have been busy getting all the data together which has led to the latest developments.
"Originally we thought this area would have been well explored due to its close proximity to the world class Sons of Gwalia mine.
"However the drill data reveals many areas are ineffectively drill tested and the possibility of finding another large scale gold deposit along the Gwalia Shear Zone remains."
Exploration Target Kin Mining NL
Kin have identified at least two north-west striking faults within the Gwalia South prospect area and believe that these structures have been poorly tested by previous exploration.
The new exploration model will focus on the prospective north-west striking faults that are believed to be the controlling structures for large scale gold mineralisation within the Gwalia Shear Zone.
Drilling Kin Mining NL
Kin said collation and interrogation of newly acquired datasets has confirmed the highly prospective nature of the Gwalia South Prospect.
Deeper angled reverse circulation drilling is planned to effectively test this underexplored structural corridor over a strike length of more than 4 kilometres.
The recently secured tenure has been held for the last 30 years by the previous mine owners and may have been somewhat overlooked due to large scale mining being their primary focus.
The addition of Gwalia South now expands Kin’s overall land holding along the prolific gold bearing Gwalia Shear Zone to 26 kilometres of strike length which Kin plans to systematically explore.
Analysis
That Kin’s ground is only 2.5 kilometres away from Sons of Gwalia mine has always been acknowledged.
But the fact that Gwalia South also comprises the same geological sequence and structural regime makes this area a compelling drill target.
Gwalia South has now been elevated to one of Kin’s priority gold targets.
Exploration success by Kin at Gwalia South could open up all sorts of options, from ore / milling / tolling agreements, attracting farm-in partners or even the potential to consider development by the company.
While only early days for Kin at Gwalia South, the location itself will garner a second look from gold focussed investors.
Source : Proactive Investors Australia
