Kingston Resources confirms potential for long-life, low-cost Misima operation

Kingston Resources ASX KSN Misima Gold Project Definitive Feasibility Study PNG Papua New Guinea
Kingston’s definitive feasibility study for Misima estimates annual gold production will be 120,000-130,000oz.

Kingston Resources’ (ASX: KSN) definitive feasibility study for its Misima gold project in Papua New Guinea (PNG) forecasts production of 2.4 million ounces over the 20-year mine life.

That equates to average annual gold output of between 120,000oz and 130,000oz.

Kingston also revealed a 28% increase in the ore reserve to 76Mt at 0.79 grams per tonne gold.

The economics are strong, too, for the definitive feasibility study with an estimated all-in sustaining cost of $1,217 per ounce (against a current Australian gold price of about $2,570/oz).

The company describes the study’s outcome as showing “compelling project economics, long life and outstanding potential growth”.

Misima is located on the island of the same name that lies in the Solomon Sea east of the PNG mainland and is part of Milne Bay province.

It is regarded as one of the great gold mines of the Asia-Pacific, gold having been discovered there in 1888 and last mining taking place in 2004, with the closure brought about by the then low gold price.

Strong silver stream adds to value

Along with gold, the definitive feasibility study anticipates production over the 20 years of 5.6Moz of silver.

Ore treatment will run at 6.1 million tonnes per annum using a conventional carbon-in-leach plant, fed by the main Umana pit and the Ewatinona starter pit.

Managing director Andrew Corbett said the geological teams had done an outstanding job to complete such a comprehensive work program in a challenging environment.

“Delivering such a high-quality study alongside a 28% increase in reserves is a decisive moment for the Misima gold project, Kingston shareholders, all stakeholders — in particular the Misima community who have strongly supported our progress,” he added.

Kingston now to address financing of development

Mr Corbett said Misima remains one of the best undeveloped projects in the Asia Pacific region.

The company will now consider a range of funding and strategic options to “optimise the development pathway” and maximise shareholder value.

The next stages are finishing the environmental and social impact assessment, followed by the lodging of applications for a mining lease and environmental approvals.

Last year, Kingston moved to 100% ownership of Misima after paying the final $1.6 million of the $2 million price on acquiring the 19% stake in the mining project held by Japan’s Pan Pacific Copper.

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