Aspiring gold producer Kingston Resources (ASX: KSN) has announced significant new gold and silver results from the latest holes of a resource drilling program at Kulumalia within its flagship Misima project in Papua New Guinea.
The holes returned multiple new wide mineralised intercepts outside of the current reserve pit shell, which the company said increases its confidence in the existing resource and reserve models.
Assay highlights include a 3m intersection grading at 8.3 grams per tonne gold and 87.2g/t silver from 1.5m and 21.3m at 1.69g/t gold and 30.5g/t silver from 218m.
Other notable intercepts were 6m at 2.32g/t gold and 46.5g/t silver from 142m; 21.5m at 0.94g/t gold and 121g/t silver from 210.9m; 19.4m at 0.85g/t gold and 60.8g/t silver from 94m; and 3m at 2.53g/t gold and 228g/t silver from 104m.
The assays are consistent with previously reported results in March and May, although these latest results have also delineated new mineralisation beneath the current life-of-mine plan.
A total of 19 diamond drill holes for 3,820m have now been completed at Kulumalia with results to be incorporated into the Misima resource and reserve update expected in the September quarter.
Kingston managing director Andrew Corbett called the Kulumalia drilling program a “great success” and one which has advanced the company’s understanding of the geology of the prospect with “expected positive implications” for the life-of-mine plan in the southern portion of the proposed Umuna pit.
“We are now gearing up to move to the next stage of development for the Misima project as we advance the mining studies and approvals,” he said.
Mr Corbett said the drilling rigs used for Kulumalia subsequently completed a short drilling program at the Cooktown stockpile, aimed at increasing confidence in that component of the resource. The rigs have since returned to Kulumalia for follow-up drilling.
Drilling is planned to continue throughout 2021 with a resource and reserve update expected in the September quarter, which will in turn feed into a definitive feasibility study (DFS) anticipated for delivery in the first quarter of 2022.
“The DFS will be our core focus over the second half of this year, alongside the Environmental and Social Impact Assessment (ESIA) works which are ongoing,” Mr Corbett said.
“The team is also preparing for a geotechnical drilling program that will commence in July,” he added.
Bringing Misima back to life
Kingston is aiming to revive the historical Misima gold mine, which closed due to low gold prices in 2001.
The Misima deposit is currently estimated to hold JORC probable ore reserves of 48.3 million tonnes at 0.9 grams per tonne of gold for 1.35Moz and an estimated mineral resource of 144Mt at 0.78g/t for 3.6Moz gold.
The company released a pre-feasibility last November that showed potential for a large-scale, long-life, low-cost operation at Misima with the capacity to produce 130,000 ounces of gold per annum over a 17-year mine life.