With a “robust” pre-feasibility study under its belt in Papua New Guinea and high-grade gold results in Western Australia, Kingston Resources (ASX: KSN) says it is positioned for growth this year.
Kingston is aspiring to be “the next low-cost, large-scale gold producer in the Asia Pacific” with Livingstone in Western Australia and Misima in Papua New Guinea.
On top of project development plans, the company in the December quarter announced the appointment as chairman of the former president and chief executive officer of OceanaGold Corporation (ASX: OGC), Mick Wilkes.
Over the past 20 years, Mr Wilkes has been successful at developing four major gold and copper mines.
Now, in its latest quarterly report, managing director Andrew Corbett says the company has hit the ground running in 2021.
This follows a “really successful” December quarter.
December quarter saw four ‘key’ events
“The combination of four key events — an outstanding PFS for Misima, a maiden 1.35 million ounce ore reserve, a successful $13 million raising and the appointment of Mick Wilkes as chairman — has given us really strong momentum to achieve our key objectives this year,” Mr Corbett said.
One of those is to bring the 131-year-old Misima mine back to life, producing about 130,000 ounces per annum over a 17-year mine life.
The company described the PFS as showing a project with “compelling” economics, a long life, low capital intensity and “outstanding” growth potential.
The study shows that gold can be produced at an all-in sustaining cost of A$1,159 per ounce over the life of the mine.
Looking to increase Misima resource
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.
Mr Corbett says he is confident that the gold inventory at Misima can be increased and, with progress toward a definitive feasibility study, Kingston will see greater market recognition in the months ahead.
“Plus, with a strengthened balance sheet and with Mick’s strategic input and guidance, we are really well placed to achieve our goal of becoming a significant new gold producer in [the] Asia Pacific region,” he added.
The December quarter also saw progress at the Livingston gold project in Western Australia.
High-grade intercepts included 17m at 3.07 grams per tonne gold (from 14m down hole), 7m at 3.32g/t, 11m at 1.0g/t and 11m at 1.18g/t.
Kingston ended the quarter with a cash balance of $16.6 million.