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Kingston Resources capital raisings fund drilling and results

The company's key asset is the 2.8 million-ounce Misima Gold Project in Papua New Guinea with another gold project in Australia.

  • Drilling results from Misima Gold Project in Papua New Guinea are pending

  • More drilling is planned for the September quarter of 2019

  • Livingstone Gold Project in WA is also flagged for drilling

What does Kingston Resources do?

Kingston Resources Ltd (ASX:KSN) is an explorer-developer with a 2.8 million ounce gold project in Papua New Guinea and another gold project in Australia.

It is led by managing director Andrew Corbett, an engineer and former resources analyst with more than 26 years of resources industry experience.

Corbett was a Global Resource Fund portfolio manager for Perpetual Limited and an underground manager and mine superintendent for a variety of companies such as Newmont Mining Company and Lionore Mining International Ltd.

What does Kingston Resources own?

The key asset is the 2.8 million ounce Misima gold deposit in PNG while the secondary asset is Livingstone Gold Project in Western Australia.

Kingston raised near on $1 million in a rights issue by early June 2019 to fund drilling at the projects.

The investment had followed a $4.3 million capital raising completed in May 2019.

Kingston began its June quarter capital drives hoping to undertake an extensive regional drill program at Misima to target new deposits and advance extensional and infill drilling at the project’s known resource.

Investors are awaiting laboratory results from drilling at Misima.

A number of exploration targets are found at the old Placer Dome gold-silver mine Misima which Kingston believes could once again support a long mine life.

The Company’s now completed 11-hole completed drilling program of 1,476 drilled metres was designed to provide infill and validation data in an area east of the historical Ewatinona open pit in the Quartz Mountain area.

Drilling in April 2019 focused on another Quartz Mountain area, Waipuna prospect, which was identified by modern analysis.

A drilling effort at Ara Creek is expected later this quarter.

Ara Creek area Misima North holds promise along with the artisanal mining area Umuna East where coarse supergene wire gold has been mined from mineralised structures at the surface.

Misima’s open pit gold mine historically produced 3.7 million ounces of gold and about 22 million ounces of silver over a 15 year mine-life.

This mine opened in 1989 and produced ounces at average costs of about US$218 an ounce before it closed in 2004.

The deposit’s total known gold endowment is more than six million ounces.

Modern exploration work is aiming to deliver new near-surface mineralisation to boost project economics and provide cash flow in the planned early years of mining as the company moves toward accessing the main Misima resource.

Livingstone Gold Project in Western Australia is in the western Bryah Basin near iron ore and gold operations.

Livingstone’s historical JORC 2004 inferred mineral resource was 49,900 ounces of gold.

Mineralisation at the project has been defined over a 1-kilometre strike, with brownfields exploration potential seen over a 42-kilometre strike length.

Kingston’s capital raisings this year are also aimed to fund exploration drilling at this project.

Source: https://www.proactiveinvestors.com.au/companies/news/223863/kingston-resources-capital-raisings-fund-drilling-and-results-223863.html

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