Kingston Resources delivers 15% more gold and 30% more silver at Misima project
Kingston Resources Ltd has boosted the golden bounty of its Misima project in Papua New Guinea by 15% to 3.21 million ounces with silver resources also up 30% to 18.2 million ounces.
The new resource which incorporates results of recent successful drilling programs and updated gold price assumptions is 105 million tonnes at 0.93 g/t gold and 5.4 g/t silver.
It also delivers a 17% increase in total indicated gold ounces, which are available for conversion to ore reserves, to 49.9 million tonnes at 0.95 g/t for 1.52 million ounces.
"A great result"
Kingston Resources managing director Andrew Corbett, said: “This is a great result for Kingston shareholders, with the substantial increase in gold and silver ounces firmly establishing Misima as one of the most exciting new mid-tier gold development opportunities in the Asia-Pacific.
“The significant increase in overall ounces, and in particular the 17% increase in indicated ounces to 1.52 million ounces, provides a fantastic platform from which to launch our mining studies.
“Our improved understanding of Ewatinona is also a key step forward for the project and clearly establishes our proposed starter-pit.
“We are all looking forward to making the transition to mining studies to demonstrate the strength of the Misima Gold Project.”
Shares have been as much as 15% higher this morning to 19 cents, considerably higher than the 7 cents at close on March 23.
Ewatinona starter pit
The company can now confirm Ewatinona as the intended starter pit for Misima.
Corbett said: “On the ground, as soon as we can recommence exploration activity, drilling will focus on completing the infill program at Ewatinona cut short by domestic and international travel restrictions.
“Following that, the resource work completed by the team has highlighted a number of priority areas where drilling could upgrade further near-surface inferred ounces.
“We look forward to recommencing drilling in the near-term and continuing to work with the people of Misima and PNG on the world-class Misima Gold Project.”
Growth opportunities at Ewatinona include:
Resource drilling to both upgrade and extend the Ewatinona resource;
Follow up extensional targets outside the current Resource identified from recent fieldwork;
Follow up drilling on the Abi discovery 600 metres southeast of Ewatinona; and
Resource model update to include an additional nine holes for which assays were received post resource cut-off date.
Umuna resource opportunities
Kingston will be focused on upgrading and potentially extending both the Umuna and Ewatinona resources.
The Umuna resource update has increased Umuna resource tonnes by 29% and overall ounces by 7% to 97.9 million tonnes at 0.94 g/t for 3.01 million ounces gold and 18.2 million ounces silver.
A substantial proportion of the current indicated resource ounces are within moderately priced pit shells which the company views as economically encouraging to make the transition to mining studies.
The completion of an ore reserve is expected by the end of the year.
Key growth opportunities at Umuna include:
Follow-up drilling and resource model update at Umuna and Umuna East, building on all drilling completed to date;
Extensional and in-fill drilling of the southern extensions of Umuna at Kulumalia; and
Additional Umuna extensions including Tonowak and Padocol.
Pre-feasibility study work
The updated Misima resource will now underpin the pre-feasibility study (PFS), which is expected to be completed by the end of 2020.
The PFS will be enhanced by the 17% increase in indicated ounces of which 97% sits within a US$1,400 pit shell.
Umuna deposit contains 94% of the total resource ounces and is expected to underpin the PFS work focusing on a large-scale, long-life open-pit mining project.
Corbett said: “Looking ahead, there are considerable operational and economic benefits to be unlocked by focusing on Ewatinona and Umuna.
“Both areas leverage off previous mining access which remains in place, they have both been mined historically and had a combined total of over 90 million tonnes of ore processed through a standard CIL plant.
“Kingston, therefore, has considerable historical information on the mining, milling and geotechnical characteristics of these ore bodies, as well as the historical processing plant design.
“Alongside giving us confidence in the project’s future, this information will save time and costs in delivering the upcoming PFS.”
Historically economic production
The new Misima resource builds on successful historical production at Misima of 3.7 million ounces of gold before mining ceased in 2001.
Kingston expects to benefit from the deposit’s very favourable metallurgical characteristics of soft ore and coarse grind size which contributed to low-cost milling.
With its production history and current resource, the Misima project now has a total known gold endowment of more than 7 million ounces.
The company is confident that this positions Misima as a world-class gold deposit in a region known to host giant gold and copper-gold occurrences.