Kingston Resources (ASX: KSN) has moved to 100% ownership of the huge Misima gold project in Papua New Guinea, in what the company describes as a strategically important milestone.
The company has now paid the final $1.6 million of the $2 million price on acquiring the minority 19% stake in the mining project held by Japan’s Pan Pacific Copper.
Final regulatory approvals for the acquisition have also now been received.
Kingston managing director Andrew Corbett says this is an “outstanding outcome for shareholders and a strategically important milestone for the company in our pathway to becoming a substantial new gold producer in the Asia Pacific region”.
“Completion of this acquisition provides Kingston with a streamlined and simplified ownership structure, providing a strong platform and added flexibility from which to continue checking off the necessary milestones to re-start gold production on Misima Island.”
Resource progress since project acquisition
Kingston acquired a 47% stake in Misima in late 2017.
Mr Corbett said that, since then, the company has increased the resource base from 2.3 million ounces of gold to 3Moz, delivered a maiden 1.35Moz ore reserve and continues in-fill drilling and testing other targets.
Pan Pacific’s exit coincided with the reorganisation of that company.
Owned by JX Nippon Mining & Metals Corporation and Mitsui Mining & Smelting, Pan Pacific now outsources smelting and processing operation to JX Metals Smelting and Hibi Smelting, both owned by its parents.
Latest resource drilling points to resource increase plus silver
Early this month Kingston Resources reported that latest resource drilling at the historic gold mine in Papua New Guinea has confirmed the potential to increase the existing 3.6Moz resource there.
In addition, Kingston said “significant” high-grade silver assays within, and immediately adjacent to, the gold mineralisation had enhanced the potential economics of the Kulumalia area.
In November, Kingston released its pre-feasibility study (PFS) for Misima showing that it could bring back to life the 130-year-old mine, producing about 130,000oz per annum over 17-years.
The PFS estimated gold could be produced at an all-in sustaining cost of A$1,159/oz over the life of the mine.
Misima in 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, the closure brought about by the then low gold price.