Kingston Resources begins underground development at Mineral Hill

Kingston Resources (ASX: KSN) has begun re-entering the old underground workings of the Southern Ore Zone (SOZ) at its Mineral Hill mine ahead of drilling which is planned for early in the December quarter.

Initial work underground at this historic New South Wales mine is focusing on safety checks, reinstating ventilation, power and plumbing.

The planned underground infill drilling program targeted for later this year is aimed at extending the SOZ’s existing mineral resource estimate.

‘Sustainable, long-term operation’

Managing director Andrew Corbett said Mineral Hill already has an established extensive infrastructure, both underground and on the surface, which is seen as an “enormous” advantage for Kingston Resources.

“This is the groundwork for a sustainable, long-term operation, and our whole team is dedicated to the success of this project,” he added.

Back in 2021, Mr Corbett noted that Mineral Hill had a strong history of high-grade gold and copper production, a number of advanced brownfields exploration targets, an existing resource base and infrastructure which was expected to enable a low capital-intensity restart.

Mineral Hill covers 20 granted mining leases within a single exploration licence.

The mine is located in the Cobar Basin of NSW, 65km north of Condobolin.

Long history, but plenty of resource remains

In late 2021 the company bought the Mineral Hill mine for $22.7 million in cash and shares from US-based Quintana MH.

Mineral Hill had by then seen a long production history but, as Kingston said at the time of purchase, retained an “extensive” gold and copper resource”.

The company says that current exploration is focusing on near mine production opportunities from both open pit and underground targets on the mining leases.

Drilling in 2022 at SOZ targeted the upper extents of the mineralisation.

Among the results of that work, one hole returned 39m at 1.1% copper, 0.7% lead, 0.8% zinc, 0.93 grams per tonne gold and 12g/t silver.

Another assayed at 17.3m at 0.3% copper, 1.2% lead, 1.0% zinc, 1.32g/t gold and 24g/t silver.

The area was first explored in 1894.