Kingston Resources Ltd (ASX:KSN) has transitioned the Mineral Hill deposit in New South Wales from tailings retreatment to hard rock mining, with open pit mining beginning at Pearse North in an “owner-operator” approach.
KSN processed 1.6 million tonnes of tailings waste rock in the first phase of value creation at Mineral Hill, generating $25 million in cashflow.
During that time, the company prepared the rest of the project for at least five years of underground and open pit mining with the intention of producing a mix of metals dominated by gold and copper.
Building a skilled, dedicated team
“The Kingston board and management team take great pride in the work accomplished by the Mineral Hill team over the past two years,” Kingston Resources managing director Andrew Corbett said.
“In this time, our focus has been on hiring local people with varying degrees of mining experience, including those new to the industry.
“This approach has allowed Kingston to develop and train a dedicated team for the tailings project who are now transitioning to the open pit mining team.
“A passionate, supportive and highly effective Kingston work culture has emerged.”
The KSN team is finalising the refurbishment of the processing plant at Mineral Hill, which required a $12.5 million investment that the company says was delivered within a tight budget and timeline.
Multi-element deposit
“The low-cost refurbishment of the plant will provide Kingston with a versatile operating polymetallic processing facility, capable of processing all configurations of oxide and sulphide Cobar style mineralisation, containing precious and base metal – copper, gold, zinc, lead and silver,” Corbett continued.
“The existing CIL (carbon in leach circuit) on site can maintain a throughput of 100 tonnes per hour, with the current grinding circuit capable of running at 50 tonnes per hour.
“Mineral Hill offers a unique opportunity within the Cobar region as it is a fully approved operating mine with a licence to operate for up to 700,000 tonnes per annum.
“It boasts a long-term tailings storage strategy, on-site water storage, access to both mains and generator power, local residential work force, biodiversity offset, cash backed environmental bond and a highly supportive community.
“We are thrilled to be completing the tailings project and transitioning to phase two of our strategy with Mineral Hill.
“The open pit production will significantly increase cashflow to expand the business. Kingston’s aim is to establish a long-life precious and base metal mine with both organic and inorganic expansion options.”
KSN expects the crushing and grinding of the initial oxide ore to begin in July, marking the start of gold and silver production.
The floatation plant is scheduled to be commissioned in August, unlocking full processing capability to produce multiple metal concentrates alongside precious metal dore.