Kingston Resources to Accelerate Mineral Hill Development as Part of Debt-Free Transition
A cashed-up Kingston Resources (ASX: KSN) is on target to expand development of its Mineral Hill copper-gold project in NSW.
Kingston announced earlier this month that it was debt free after repaying a $15 million facility with funds from Ok Tedi’s initial $50m payment for its acquisition of the Misima mine in Papua New Guinea.
The company said today that it now has the funds to accelerate an extensive exploration program as part of its plans to maximise operating cash flow at Mineral Hill, with a particular focus on discoveries along both the Mineral Hill trend and Gilmore Suture Zone.
Copper and Gold Growth
Chief executive officer Andrew Corbett said the initial payment received from the Misima sale had set the company up to prioritise its copper and gold interests in Australia.
He said Kingston’s planned exploration program “far exceeds any investment made at Mineral Hill in decades” and that it was a key component of the company’s strategy to significantly extend the project’s life-of-mine schedule out to 2031.
Kingston will align its exploration work with mining studies to add existing brownfields resources into the mine plan.
It also plans to investigate the potential acquisition of toll treatment joint ventures with existing regional resources it could transport to Mineral Hill.
Staged Mill Expansion
Kingston’s strategy involves a staged mill expansion at the Mineral Hill processing plant, which has a permit to process up to 700,000 tonnes per annum of ore feed—well above current forecast production levels.
Mr Corbett said the company’s upcoming exploration program at Mineral Hill would test a trend it believes has significant potential for discoveries of additional copper, gold and base metal deposits.
“The existing deposits and exploration success of our neighbours demonstrate the area’s metal endowment, and strong indications of mineralisation exist along the entire length of our tenure,” he said.
“Additional latent value can be materialised by maximising the capacity and utilisation of our processing plant—a major value driver for the company.”
Management Team Changes
As part of its growth strategy, Kingston has announced a number of senior appointments.
The company has appointed Mineral Hill project general manager Geoff Merrell to the position of general manager, NSW Growth.
Melanie McCarthy, who most recently served as general manager with Mandalay Resources at its Costerfield underground gold and antimony mine in central Victoria, will become the new general manager at Mineral Hill.