COMEX Gold futures tumbled yesterday, sliding from a six week high as gains in equities hurt the sentiments. The metal tested a one week low today and currently trade flat at $ 1324 per ounce. MCX Gold futures fell by around 0.65% yesterday to close at Rs 30500 per 10 grams and should see further slippage in evening trades today. Buying would be thin ahead of the extended weekend and approaching expiry of the near month April futures.
Kin Mining NL continues to advance construction of its Leonora Gold Project (LGP) in Western Australia which is on track to achieve production in the December quarter of 2018. The project is forecast to produce at an average rate of 55,000 ounces of gold per annum from its JORC resource of 1.02 million ounces and JORC ore reserve of 373,000 ounces. The resources are spread across three deposits, Mertondale, Cardinia and Raeside – all which show good potential for resource growth.
The definitive feasibility study (DFS) confirms LGP will be a high margin gold mine with a pre-production capital cost of $ 35.4 million including 18% contingencies and estimated annual production of 55,000 ounces per annum over 7-year mine-life. The project’s DFS valuation used a gold price of A$ 1,600 per ounce meaning when the gold price is above this level, the project’s value increases. Kin continues to pursue its aggressive drilling campaign as Kin ramps up to production. Drilling has commenced at the group’s Kyte orebody to extend on its indicated resource of 21,000 ounces of gold. Drilling is also planned at other prospects where high-grade gold was encountered in 2017.