Kingston Resources (ASX:KSN) is recommissioning the processing plant and restarting open pit mining in June in the transition to hard rock mining at Mineral Hill in NSW.
Since acquiring Mineral Hill in January 2022, Kingston has processed over 1.6Mt of tailings, generating a robust operating cash flow of $25 million. Also during this time, Kingston has completed several work programmes aimed at establishing an open pit and underground mine life of more than five years.
Most importantly, these programmes have cultivated the Kingston team into a highly skilled owner mining workforce capable of self-managing and self-performing all aspects of the mining cycle.
Mining will initially begin from two open pits at Pearse North and South, producing both gold and silver. This will be followed by the initial underground at the Southern Ore Zone (SOZ), a polymetallic orebody producing mainly copper (40%) and gold (40%). Kingston views Mineral Hill’s future as a long-term underground operation with significant potential for expansion.
“The Kingston board and management team take great pride in the work accomplished by the Mineral Hill team over the past two years. In this time, our focus has been on hiring local people with varying degrees of mining experience, including those new to the industry,” Managing Director, Andrew Corbett, said.
“This approach has allowed Kingston to develop and train a dedicated team for the tailings project who are now transitioning to the open pit mining team. A passionate, supportive and highly effective Kingston work culture has emerged.
“The low-cost refurbishment of the plant will provide Kingston with a versatile operating polymetallic processing facility, capable of processing all configurations of oxide and sulphide Cobar style mineralisation, containing precious and base metal – Cu, Au, Zn, Pb & Ag. The existing CIL on site can maintain a throughput of 100tph, with the current grinding circuit capable of running at 50tph.
“Mineral Hill offers a unique opportunity within the Cobar region as it is a fully approved operating mine with a license to operate for up to 700,000 tonnes per annum. It boasts a long-term tailings storage strategy, on-site water storage, access to both mains and generator power, local residential work force, biodiversity offset, cash backed environmental bond, and a highly supportive community.
“We are thrilled to be completing the tailings project and transitioning to phase two of our strategy with Mineral Hill. The open pit production will significantly increase cashflow to expand the business. Kingston’s aim is to establish a long-life precious and base metal mine with both organic and inorganic expansion options.”
