CAPITAL MARKETS

KIN's winning hand

WESTERN Australia's latest mineral IPO has succeeded against all odds, with a few aces up its sle...

Anthony Barich

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A couple of weeks ago, while heading out to the northeastern Goldfields to review some drilling, KIN Mining managing director Trevor “Ginger” Dixon got a voicemail message from an old associate he used to sink shafts with in Leonora telling him that a critical parcel of ground he’d been craving had just become available.

At the drop of a hat, he drove out to the spot in the dark. He knew the area so well that he found and pegged it at 9.40pm.

Such is the fortune of KIN, a company with the expertise and contacts to pull off what some consider impossible.

Just getting the company off the ground as an ASX IPO in October was an effort. It just got over the line with $2.6 million raised, through the somewhat novel approach of sourcing investment from the very drilling companies they got to rig up exceptionally quickly for the first programs at Murrin Murrin this month.

Then there was the initiative KIN put forward of an options issue, just three months post-listing, and the restriction agreement it entered into with its existing shareholder group, which were also a critical part of making KIN Mining as attractive as possible for an exceptionally discerning and scrupulous market place.

But as they say, it is from little things that big things grow.

Between Dixon, fellow Leonora veteran geologist Fritz Fitton and chairman Terry Grammer – another long-time geologist who was instrumental in making Sirius Resources the success it has become – KIN's board is a veritable tour de force.

While Fitton was at pains to paint the company as a multi-commodity stock, its focus is predominantly gold. The fact that his experience in the Leonora-Laverton area prior to 1980 was all base metals merely speaks to the upside potential for KIN.

“One of our prospects is about 15km away from Jaguar, which I was involved with in 1979, and we think we’ve got very good potential for VMS [volcanogenic massive sulphides],” Fitton said.

“Our last two announcements have highlighted that our project areas do contain some evidence of nickel, copper and lead mineralisation, and we located a couple of gossanous outcrops prior to that in our initial field trip.”

The yarns Dixon and Fitton recall about how far back they go in the region make the head spin, yet reveal a grassroots knowledge that should help the very-small scale junior, especially considering three of its six projects are greenfields –a novelty in itself for Leonora, whose mining history dates back to the 1890s.

“Although we have a small amount of funds to start off with, we’re serious about putting some value onto the bottom line of KIN Mining,” Dixon told MiningNewsPremium.

“Now that we’re public, our focus is on doing what our investors expect us to be doing – to put some minerals on the bottom line to demonstrate that we have the capability to find some minerals on our ground, which will allow us to return to the market at a time that suits.

“Having lived in the same town as half the Goldfields Land Council, who we know personally, those relationships we have generated over our time in the region are very important. That tenement [which he pegged in the dark of night] was an example of that.”

Fitton, with 43 years’ experience in the area, believes Dixon has an exceptionally intimate knowledge of the approvals and native title process, enabling KIN to talk openly and frankly with native title partners.

Fitton and Grammer have both been involved in the discovery of many world-class mineral deposits over the past 35 years, and hope to do the same for KIN.

Dixon also ran his own earthmoving business – Evandale Contracting – for about 20 years servicing the mining industry in Leonora, so equipment was available at a fraction of the price.

“There’s nowhere I can think of where everything is so close, like infrastructure,” Fitton added.

Despite Leonora’s long mining history – most of KIN’s tenements have previous workings – there are some that have not even been drilled yet.

Furthermore, through Fitton’s experience personally mapping the entire district while running one of Esso Minerals’ Australian divisions in the 1980s, KIN has exclusive data of the region; plus another database thanks to $30 million worth of drilling by previous tenement holders.

This data tells KIN where not to waste money and, Fitton added, “it’s telling us there are a hell of a lot of things with very good results that were never followed up”

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