Misima DFS confirms potential for long-life, low-cost gold mine with 1.73Moz Reserve, $956m NPV

By: PNG Business News June 08, 2022

Photo credit: Kingston Resources - Figure 1: Misima Gold Project site layout

Kingston Resources Limited  is pleased to advise that it has taken an important step towards bringing the Misima Gold Project into production with the completion of a positive Definitive Feasibility Study (DFS).

The DFS confirms the potential for a large-scale, long-life, low-cost operation delivering gold production of 2.4Moz over 20 years at forecast life-of-mine (LOM) all-in sustaining costs (AISC) of A$1,217/oz. Leading independent consultants have been engaged on all key aspects of the project and DFS technical outcomes were very consistent with the PFS confirming the technically robust, low risk nature of the Project.

Kingston plans to leverage off the strong production history at Misima and construct a new 6.1Mtpa CIL treatment facility and modern infrastructure on the footprint of the historic mine, establishing a new www.kingstonresources.com.au 2 standalone, long-life gold mining and processing operation underpinned by two major ore sources – a cutback of the existing Umuna open pit and an expansion of the existing small pit at Ewatinona in the Quartz Mountain area. The extensive mining and processing history, advantageous metallurgy, and simplicity of the process flowsheet all give Kingston a high degree of confidence in the technical and commercial viability of the Project.

Reserve Upgrade 

Kingston is also pleased to report an increase in the Misima Gold Project JORC Probable Ore Reserve to 76Mt @ 0.79 g/t for 1.73Moz, an increase of 28% above the prior Reserve.

Kingston Resources Managing Director, Andrew Corbett said: “I am extremely pleased to be reporting such fantastic results from our Definitive Feasibility Study. Delivering such a high quality study alongside a 28% increase in Reserve is a decisive moment for the Misima Gold Project, Kingston shareholders, and all stakeholders, in particular the Misima community who have strongly supported our progress. 

“The Kingston study and geological teams have done an outstanding job to complete such a comprehensive work program in a challenging operational environment. The foundations for a return to gold production at Misima are now firmly established and we look forward to continuing to advance Misima towards first production.

“The DFS confirms a robust, large-scale, long-life, low cost operation delivering total production of 2.4Mozs at an extremely attractive average all-in sustaining cost of A$1,217/oz. While there have been significant and www.kingstonresources.com.au 3 broad-based impacts of cost inflation, the Project’s economic parameters are compelling, with pre-tax free cash-flow of A$2.7 billion, a pre-tax NPV of A$956 million and an IRR of 22%.

“These are outstanding results that highlight Misima as one of the best undeveloped projects in the AsiaPacific region. I would like to thank the Kingston study team and all of the consultants who have worked together to deliver a strong body of work. Special thanks also to KSN Chair Mick Wilkes for leading the DFS steering committee, Mick’s depth of experience in developing large scale mines was invaluable in ensuring technically robust and high quality work was delivered throughout the study.

“We now look forward to the next stage of advancing Misima. Discussions have commenced in relation to considering the strategic options for developing the Project that will demonstrably enhance shareholder returns. In the short term, we anticipate concluding the Environmental and Social Impact Assessment, with our Mining Lease and environmental approval applications to be lodged shortly thereafter.”

The DFS referred to in this announcement is based upon a Production Target derived from the JORC Code 2012 Compliant Mineral Resource Estimate inclusive of the Probable Ore Reserve referred to in this announcement. The Company advises that the Probable Ore Reserve provides 64% of the total milled tonnage and 70% of the total contained gold metal, the Indicated Resource outside the Ore Reserve provides a further 5% of the total milled tonnage and 5% of the total contained gold metal. The remaining tonnage (31%) and contained ounces (25%) is comprised of Inferred Resources. There is a low level of geological confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production targets reported in this announcement will be realised.


Full article and figures can be found HERE

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