Kingston Resources Ltd (ASX: KSN) has achieved another significant increase in the JORC 2012 Mineral Resource Estimate for the historic Misima Gold Project on Misima Island in Papua New Guinea.
The updated Misima Resource has delivered a 15% increase in total gold ounces and 30% increase in total silver ounces and now comprises an Indicated and Inferred Mineral Resource of 105.5Mt @ 0.93g/t Au and 5.4 g/t Ag for 3.2Moz Au and 18.2Moz Ag.
Managing Director, Andrew Corbett, said the latest results confirm the project’s status as one of the most significant mid-tier gold development opportunities in the Asia-Pacific region.
Kingston commenced drilling at Misima in June 2018 with 49% equity ownership in the project, the company has since increased its equity ownership to 80.5% and has a non-binding agreement to move to 100% ownership.
Early work highlighted that a starter pit would considerably enhance project economics. With this in mind, the exploration strategy has focused on near-surface opportunities, and the company can now confirm Ewatinona as the intended starter pit for Misima.
The Misima Resource update has focused on updating the geological model at Ewatinona while also revising project assumptions around cut-off grade and gold price inputs.
Mr Corbett said the updated Resource will now underpin the Pre-Feasibility Study (PFS), which is expected to be complete by the end of 2020.
The PFS will be enhanced by the 17% increase in Indicated ounces to 1.52Moz, of which 97% sits within a US$1,400 pit shell.
The Umuna Deposit currently contains 94% of the total Resource ounces and is expected to underpin the Pre- Feasibility work focusing on a large-scale, long-life open pit mining project.
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,” Mr Corbett said.
“The significant increase in overall ounces, and in particular the 17% increase in Indicated ounces to 1.52Moz, 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.
“A special thanks goes out to the Kingston geological team, headed up by our Chief Geologist Stuart Hayward, for advancing the Project to this point. Under Stuart, the team has significantly advanced its understanding of Umuna and Ewatinona, and we are all looking forward to making the transition to mining studies to demonstrate the strength of the Misima Gold Project.”
Mr Corbett said there are considerable operational and economic benefits to be unlocked by focusing on the Ewatinona and Umuna deposits.
“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 orebodies, 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.
“On the ground, as soon as we can re-commence exploration activity, drilling will focus on completing the in- fill programme 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.
