St Barbara buys chunk of Kin

Gold producer St Barbara has paid A$25.3 million cash for a 19.8% stake in explorer Kin Mining (reports MiningNews).
16th July 2021
Resources Rising Stars

The acquisition of 158.1 million shares was made yesterday at an average price of 16c per share, a premium to Kin's closing price of 14c yesterday.

Kin closed at just 11.5c on Tuesday.

St Barbara has been working on a Leonora province plan centred around its 1.4 million tonne per annum Gwalia mill.

Kin's Cardinia project has a resource of 30 million tonnes grading 1.28 grams per tonnes for 1.23 million ounces and is about 35km from the Gwalia mill.

St Barbara has been relying on about 200,000t per annum of third party ore to fill the mill.

The company has recently lifted Leonora gold resources by 28% to 6.4Moz and has launched a prefeasibility study on two satellite deposits, as well as the potential expansion of the mill to 1.7Mtpa, or even a new 2-4Mtpa plant.

Late last year, the company outlined a two-stage plan to grow production sustainably at Gwalia.

The first uplift will see Gwalia get back to annual production of 210,000-230,000oz per annum by FY23 at all-in sustaining costs of $1100-1200 an ounce.

Uplift two is aimed at getting production back to 215,000-240,000ozpa by FY25 via production options in the Leonora province, including Gwalia Shallows, historical pits and stockpiles and replace toll milling with St Barbara's own ore.

FY21 guidance for Gwalia was recently downgraded to 150,000-160,000oz at AISC of $1815-1950/oz from 175,000oz at AISC of $1590-1630/oz due to workforce availability as a result of a change of contractor. Gwalia's original FY21 guidance was 175,000-190,000oz at AISC of $1435-1560/oz.


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