Ann: Kin Mining to Acquire Leonora Gold Project , page-14

re: Ann: Kin Mining to Acquire Leonora Gold P... Following up on my last post, I sat down with Trevor Dixon today and got a great overview of why they moved on this deal and the background to it. I came away from the meeting feeling very confident in the massive upside potential of this asset for Kin Mining.

In a previous post on this thread I said I believed there was nothing wrong with Navigator's Leonora's assets and that rather, it was their foray into Bronze Wing that sent them into administration. I know there may be many opinions on this especially from ex-Navigator shareholders, however I came away from my meeting with Trevor today with my original view having been reinforced.

Trevor Dixon along with Kin's Technical Director Fritz Fitton have had a longstanding intimate experience with these assets. Trevor had worked on the Mertondale 3-4 pit from the first drill hole to its rehabilitation. He was the earth moving contractor on this job. When Raeside was owned by Triton, Fritz not only discovered the Forgotten Four deposit, but worked across the entire inventory of these assets. He commented that the KIN management team knows these assets backwards.

Trevor made the point that he believed so much in these Leonora assets that he was a top 20 shareholder in Navigator based purely on the fact that they had control of these assets. Further he believes the ex-MD of Navigator (Tom Sanders) also had a similar sentiment regarding these assets and that he had actually organised an option on building a mill to bring these assets into production. Meaning he had done his numbers on these assets being profitable inclusive of the costs of building this mill. When Navigator moved on Bronze Wing instead (and the debt involved with that), two things happened which I believe are pertinent to the current story of KIN. Tom Saunders quit as MD as he believed Bronze Wing would be the undoing of NAV (just as it was for View Resources) and Trevor Dixon sold out his position in NAV as he too thought the same. The rest I guess is history with Navigator pouring all their resources into Bronze Wing and the company now being in administration.

As far as the plan moving forward with these assets, if KIN can close out this deal, Trevor said he was very confident of being able to achieve similar results to the historic production as shown in the table below:

He also mentioned that St Barbra has a very hungry gold mill at their Sons of Gwalia mine and that it appears that they have feedstock sorted for it for about 2 years but after that, they may be looking for further supply. This then would give a time frame of a couple of years to do further drilling across these assets to be able to achieve future production to match the historic production.

So I've done a bit more research on these Leonora Assets and for anyone interested in further reading on this I would recommend having a look at the NAV presentation announced via the ASX on 17/05/2012 as well as the Independent Report on these assets done by Optiro and announced via NAV on the ASX on 25/10/2012 as part of their 'Lodgement of Replacement Prospectus'. The Optiro report actually starts on page 87.

I've also found some old study papers on the Merton Reward mine. I have copied here below a cross sections of Merton's Reward and Table that some here may find interesting. The exciting thing about this one IMO is that the main ore body is open at depth with the last intersection being 20m at 4.44 g/t.

Also going way further back in history the original discovery grades are just off the charts with the best being 8.5 Oz/t:

Anyway, after looking into these assets more today and speaking with Trevor Dixon, I'm am feeling comfortable with the quality of these assets and the upside they can provide for KIN, if the required money is raised.