Livingstone is an advanced exploration project with an existing JORC2004 resource of 49,900 ounces gold and a number of high-grade drilling intersections indicating potential for additional discoveries.
The option provides Kingston with a 12-month period to explore the project and can be exercised at any time over this period.
The consideration for the option includes:
- 5.5 million restricted Kingston shares and 5 million Kingston options;
- Twelve-month exploration commitment of $200,000; and
- Upon exercising the option, $300,000 in Kingston shares.
The tenement application covers an area of about 204 square kilometres.
The most advanced prospect is Homestead, originally discovered as a soil geochemical anomaly from work done by Western Mining in the late 1980’s.
Talisman Mining Ltd’s (ASX:TLM) drilling at Homestead culminated in an inferred mineral resource announced in 2007.
The company drilled numerous high-grade intersections, including 18 metres at 7.85 g/t gold from 68 metres and 5 metres at 20.5 g/t gold from 3 metres.
The nearby Winja prospect also hosts high-grade mineralisation which will be a high priority target.
Kingston will initially focus on assessment of development strategies at the Homestead and Winja prospects and further exploration of the extensive Livingstone’s Find soil anomaly.
The company is well funded with $5.4 million cash as at 30 September 2016.