Kingston Resources reports record gold production at Mineral Hill
At Mineral Hill, Kingston Resources achieved a record 1,138oz of gold production in July and beat this in August with 1,203oz.
Production from Kingston Resources’ (ASX: KSN) Mineral Hill copper-gold mine in New South Wales has increased significantly in the first two months of the September quarter.
A ramp-up of activities from the tailings storage facility (TSF) processing operation delivered total gold production in July of 1,138 ounces, which was subsequently exceeded in August at 1,203oz.
The average all-in sustaining cost for July and August was $2,058/oz.
Kingston said grades and recovery continue to increase as mining moves deeper into the TSF, while throughput rates are benefitting from reduced rainfall relative to the June quarter.
The average tonnage processed for July and August equates to an annual mining rate of 670,000t per year.
Solid gold production
Managing director Andrew Corbett said the company was pleased with production figures to date.
“Solid production growth continues to be delivered at our gold tailings operation, with sequential monthly production records in July and August,” he said.
“We are pleased to see grade and recoveries improve as expected as we move deeper into the tailings facility.”
In August, Kingston reached a significant milestone when it produced its 100th gold bar from the TSF project.
Five-year plan
Kingston is developing a five-year plan at Mineral Hill to expedite production, including resource and reserve updates at the Pearse and Southern Ore Zone (SOZ) deposits, as well as mine design planning and plant refurbishment studies.
Last month, the company reported the first round of diamond drilling at the SOZ had delivered high-grade gold and base metal results.
The eight-hole program was designed to test and extend the spatial location and tenor of mineralisation and geological interpretation within the upper portions of the zone’s A-Lode.
SOZ hosts a 1.8 million tonne mineral resource grading 1.79 grams per tonne gold and 1.2% copper.
The deposit comprises mineralised breccia corridors with considerable internal complexity reflecting generations of fracturing with quartz–sulphide vein and breccia infill.
SOZ has retained much of the established underground and above-ground infrastructure since its closure.