Kingston Resources says Misima gold project PFS on schedule, 60% design work completed

Kingston Resources (ASX: KSN) has reported the pre-feasibility study (PFS) for its flagship Misima gold project in Papua New Guinea is advancing on schedule, with 60% design completion achieved.

Misima is one of the oldest mines now to be on the brink of revival with gold having been discovered on the PNG island in 1888.

Kingston says the work for the PFS has significantly de-risked future development, with historical operating data, metallurgical test work and geotechnical plans providing cost and time advantages.

The processing plant designed has been completed, and now engineering and cost estimations are in progress.

Misima was last revived in 1989 when Canada’s Placer Dome started mining there, overall producing 3.6 million ounces of gold over 15 years. Peak production came in 1992 with 320,000oz generated that year.

Kingston expects its new Misima operation to host a carbon-in-leach processing plant based on a similar design and capacity as the one operated by Placer Dome.

The company is also planning to locate the processing plant, haul roads, camps and other infrastructure at the same site as use by Placer. The haul roads, airstrip and port will be used either in their present state or with minor upgrades.

Milestones achieved so far include the issuing of engineering tender, completing the following: geotechnical review, metallurgical review, awarding engineering contract, environmental review along with much of the engineering design and review.

Due for completion in the December quarter are four items: engineering and estimate final, project financial model, the release of the PFS and a reserve reported for Misima.

Clear roadmap for new mine

Managing director Andrew Corbett said excellent progress is being made at Misima, the extensive historical sets of data helping with meaningful de-risking.

“Focusing on the previously mined Umana and Ewatinona open pits allows us to benefit from the well-understood mining, milling and geotechnical characteristics of these orebodies,” he added.

The PFS is on track for December release, as is an open pit ore reserve, “providing a clear road map for Kingston to progress towards the development of a significant new gold mine in the Asia Pacific,” Mr Corbett said.

The 100%-owned Misima project holds a resource of 3.2Moz of gold and 18.2Moz of silver.

Kingston acquired its interested in Misima in 2017, when it merged with Canada’s WCB Resources that held a 49% interest in the ground. The Australian company moved to full control last November.