Kingston Resources advances Misima PFS, exploration continues at Livingstone gold project

Kingston Resources ASX KSN September 2020 Quarterly Misima
Kingston Resources plans to release the Misima PFS along with an ore reserve in December.

Kingston Resources (ASX: KSN) has confirmed a pre-feasibility for its flagship Misima gold project in Papua New Guinea is in the final stages of preparation and on track for completion by year end.

In its September quarterly report released today, the company said the study had passed the 60% completion milestone and would be released in December with an ore reserve.

Work on Misima’s pre-feasibility study began in May, following delivery of an updated mineral resource estimate at the historic mine of 105 million tonnes grading 0.93 grams per tonne gold for 3.21 million ounces.

The availability of significant historical data – including processing plant design, metallurgical testwork and geotechnical analysis – enabled Kingston to rapidly progress through the early stages of the study program and move to design completion.

Engineering and cost estimation work is currently being finalised.

Drilling delays

While the quarter’s drilling activity on Misima Island was delayed due to COVID-19 travel restrictions, the PNG Government eased mandatory quarantine requirements towards the end of the period, allowing Kingston and its drilling contractor to return to site.

Work during the quarter focused on preparations for the diamond drilling campaign now underway.

It included establishing access to upcoming drilling areas, consulting with landowners and organising worksites to be safe and environmentally-sound.

Sample laboratory

Work also commenced on the construction of an onsite sample preparation laboratory, with specialised crushing and drying equipment arriving at site for housing into the fit-for-purpose facility.

The laboratory will dry, crush and split drill core samples into smaller representative samples which will be sent offsite for pulverising and assaying.

The facility is expected to reduce the total volume of samples sent off-site by a factor of five which will in turn, reduce shipping costs and provide for operational and planning efficiencies, helping to expedite the turnaround of assay results.

Western Australia exploration

Closer to home, Kingston completed a resource definition drilling campaign at the Kingsley prospect within the 75%-owned Livingstone gold project near Meekatharra.

The program comprised 50 holes for 4,390m of drilling in 17 lines spaced approximately 20m apart.

The campaign was designed to define shallow oxide mineralisation and test the current geological model developed from a 2019 structural review of Livingstone’s acreage.

Early intercepts were 22m at 3.65g/t gold from 20m, including 3m at 20.60g/t from 20m, including 1m at 31.24g/t from 20m and 1m at 8.25g/t from 31m; and 20m at 1.96g/t gold from 1m including 3m at 4.99g/t from 17m; and 8m at 4.06g/t from 49m including 1m at 28.02g/t from 55m.

All but two drill holes from the program returned results grading more than 0.5g/t gold.

A second rig was at the project’s Stanley prospect in August, co-funded by the state government’s exploration incentive scheme.

The rig then moved on to the historic Homestead deposit and the high-grade Winja prospect.

Results from the program are expected next month.

Corporate

Kingston ended the quarter with a cash balance of $6.8 million, including funds received from an oversubscribed $2 million share purchase plan in June.

Total exploration expenditure for the three-month period was $1.294 million, and the company shelled out $131,000 in payments to associates and related parties reflecting fees, wages and superannuation paid to directors.

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