Kingston Resources reports new monthly record for gold sales from Mineral Hill
March quarter gold sales from the Mineral Hill tailings operation reached 4,431oz, which was a record quarterly performance.
Kingston Resources (ASX: KSN) has reported a new monthly record for gold sales from its tailings operation at Mineral Hill in New South Wales totalling 1,776 ounces for March.
The achievement brings third quarter gold sales to a record 4,431oz.
Additionally, all-in-sustaining costs (ASIC) decreased a further 12% in March, compared to February, to $1,432 per ounce, while the average gold price received increased 7% to $2,865/oz.
In recent weeks, Kingston has seen a reduction in the cost of some key consumables at the operation.
Operational and sales performances have contributed to an increase in cash on hand, from $6.8 million at the end of December to $9.5 million at the end of the March.
Developing to plan
Kingston is currently processing tailings at Mineral Hill as it builds resources and reserves across the project to transition to traditional mining.
Managing director Andrew Corbett said the project had been developing to plan.
“The significance of the tailings project in providing us with operating cash flow and setting us up for long term growth at Mineral Hill is obvious from this performance,” he said.
“Being a low-cost gold producer in the current climate is a huge advantage .. this financial strength gives us an excellent platform for growth.”
Mr Corbett said the company was benefiting from “strong and unhedged production” and softening inflation at a time of near record Australian dollar gold prices, providing substantial leverage for shareholders.
February production
The March figures follow record daily production in February from Mineral Hill, when 1,370oz of gold was produced from the tailings project, with daily output averaging 49oz.
Gold was sold for an average of $2687/oz, while ASIC were $1626/oz.
“February production built on the great performance from the entire Mineral Hill site team over the year,” Mr Corbett said.
“Our focus on self-performing and owner-mining approach is helping us maintain a stable cost base and deliver a strong margin from the tailings project.”