Kingston Resources Ltd (ASX:KSN) managing director Andrew Corbett provided investors with a snapshot of the company’s two gold projects – Misima and Livingstone during a presentation at Proactive’s Gold Webinar on May 11.
While Kingston holds 75% of Livingstone, a small greenfields exploration project in Western Australia, Corbett said the company’s focus remained on Misima in PNG, which it is leveraging as a cornerstone asset and growing to become a mid-tier gold producer over time.
Gold and copper activity in PNG
He said: “PNG is a very large gold and copper producer today, there are very large projects there – multi-million-ounce projects.
“Misima has produced over four million ounces of gold and we’ve got over 3.6 million ounces in resource today.
“Interestingly there is a lot of activity in PNG – our neighbours Woodlark are progressing to construction this quarter, St Barbar’s Simberi project is looking to do an expansion and the board has just approved an early investment, K92 has been highly successful and is growing from 100,000 to 200,000 ounces over the next two years and the big one being Wafi has recently got its environmental permit.”
DFS underway
Kingston released the pre-feasibility study for the Misima project in November 2020, which Corbett said confirmed the robust, large-scale, long-life, and low-cost operation at an extremely attractive average all in sustaining cost of below A$1,200/ounce.
He said: “The project has scale, it’s a big project with brownfields advantage and the previous owners Placer produced very profitably averaging 230,000 ounces a year for 15 years.”
Misima’s definitive feasibility study is kicking off now and due to be released in the second half of 2021.
He said: “The economics of the DFS stacks up really well – 17-year mine life at 130,000 ounces per annum.
“A$1.5 billion free cash flow over the life of the project – it’s a big project and highly profitable at these prices.”
