Kingston Resources achieves record daily gold production at Mineral Hill in February

Kingston Resources (ASX: KSN) achieved record daily gold production in February at its Mineral Hill operation in New South Wales.

The company is currently processing tailings at Mineral Hill as it builds resources and reserves across the project to transition to traditional mining.

For February, 1,370 ounces of gold was produced from tailings processing, with daily production averaging 49oz.

Kingston managing director Andrew Corbett said it was an “outstanding result”, particularly with February being a shorter 28-day month.

Gold was sold for an average of A$2,687/oz, while all-in-sustaining costs were A$1,626/oz.

“February production continues to build on the great performance from the entire Mineral Hill site team over the year,” Mr Corbett said.

“Our focus on self-performing and owner mining approach is helping to maintain a stable cost base and deliver a strong margin from the tailings project.”

Mr Corbett said there was over of a year of tailings processing to go at Mineral Hill, however mine life will be extended by developing open pit and underground resources.

Building potential

As part of building Mineral Hill’s operational life, Kingston unveiled ore reserve updates earlier this week for the proposed Pearse North and Pearse South open pits at the project.

Reserves for the Pearse pits now total 260,000 tonnes at 3.7 grams per tonne gold and 57g/t silver for 31,000oz of contained gold and 470,000oz silver.

Kingston plans to exploit these pits as part of the initial transition from tailings processing to conventional mining.

Mr Corbett said the high-grade Pearse deposits will be a “springboard” for the operation as it transitions to conventional mining and generate more cash flow.

As part of extending the operational life at Mineral Hill, a full life-of-mine schedule is expected this month.

The scheduled is underpinned by technical studies, including geotechnical engineering, metallurgy and mining assessments.

“We look forward to providing more detail on the pending Mineral Hill life of mine plan and we are confident this will demonstrate the upside at Mineral Hill,” he said.

“Today, Mineral Hill is a gold producer, soon to be followed by copper and other critical minerals production,” Mr Corbett added.