Kingston Resources boosts gold production and cost reductions at Mineral Hill

Kingston Resources (ASX: KSN) reports that its Cobar basin mine at Mineral Hill has helped boost gold output in the June quarter.

In its report for the three months to June 30, the company says overall gold output rose by 8% to 4,944 ounces, while gold sales were up 6% to 4,777oz.

The average realised price rose 7% to $2,968/oz.

Overall gold output for the 2023 financial year came in at 16,067oz at an average price of $2.750/oz.

Drop in production costs

Importantly, The production life in the June quarter was accompanied by a drop in the all-in sustaining cost result, down 6% to $1,462/oz.

Kingston, which is also progressing a re-opening of the giant Misima gold mine in Papua New Guinea, took control of Mineral Hill in January 2022.

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

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.

Tailings processing a success

Kingston has been processing the gold tailings on site through an upgraded carbon-in-leach processing plant.

Managing director Andrew Corbett said that, over the past year and a half, Kingston has experienced a remarkable transformation.

“We take great pride in our accomplishments since acquiring Mineral Hill, as well as the invaluable expertise that our team has cultivated,” he added.

“The tailings project reprocessing has been a massive success, particularly in terms of gold production and cash flow.

“It has not only delivered exceptional results but has also paved the way for our next phase of growth as we transition to open pit mining and processing.

Underground working to follow

Earlier this year the company began re-entering the old underground workings of the Southern Ore Zone (SOZ) at Mineral Hill ahead of drilling.

Initial work underground at this historic NSW mine focused on safety checks, reinstating ventilation, power and plumbing.

An underground infill drilling program will be aiming at extending the SOZ’s existing mineral resource estimate.

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.