Kingston Resources Ltd (ASX:KSN) has kicked off an initial 15,000-metre exploration drilling program at its recently-acquired Mineral Hill Project in New South Wales.
The company’s immediate exploration strategy is to focus on near-mine or brownfields targets within the existing mining leases.
Looking ahead, the commencement of exploration drilling at Mineral Hill is an important step for Kingston on the pathway to establishing production beyond the existing Gold Tailings Project.
“Re-commencing mining operations”
Kingston managing director Andrew Corbett said: “Following the completion of the Mineral Hill Project acquisition on January 18, we are delighted to now be in a position to commence exploration drilling to support our ambition of re-commencing mining operations at Mineral Hill.
“The Kingston team completed a significant amount of preparatory work and due diligence leading up to the completion of the transaction to ensure we could hit the ground running, with an initial focus on drilling existing resource and reserve areas to extend the current mining inventory.
“We are particularly pleased to have partnered with a locally-based drilling contractor, Resolution Drilling.
“Kingston is committed to supporting local businesses and contributing positively to the local community, and we look forward to continuing to foster positive relationships with local stakeholders as we complete the tailings reprocessing project and restart mining operations.”
Exploration program
In terms of modern exploration, Mineral Hill is considered to be highly under-explored and, while subject to extensive historical drilling, the recent discoveries of Pearse and Red Terror have highlighted the project’s significant potential, with just 2% of drill-holes testing beyond 350 metres below the surface.
Kingston’s exploration program will target:
- Near-surface mineralisation is adjacent to the existing resources and reserves at the Pearse and Pearse North open pits;
- Southern Ore Zone (SOZ) Underground will be drilled from surface to in-fill and extend known resources within the A Lode; and
- Historical drilling at Jacks Hut, GD140 and Missing Link will be followed up with the aim of defining the geological models and identifying potential open-pit resources.
Moving forward, a program is also underway to rank a pipeline of greenfields exploration targets on both EL1999 and EL8334.
Corbett adds: “The Pearse deposits are an attractive place to start when planning mine life extension activities.
“With a relatively small investment, we believe additional drilling at these deposits has the potential to underpin the first year of ore feed following completion of the tailings reprocessing project.
“Additionally, the significant potential evident at the Southern Ore Zone, Jacks Hut, Parkers Hill and the broader exploration package as a whole provides an outstanding base for us to extend the mine life at Mineral Hill.”
About Mineral Hill
Mineral Hill is a gold and copper mine located in the Cobar Basin of New South Wales.
Alongside current production, exploration is focusing on near-mine production opportunities from both open pit and underground targets located on the existing mining licences
The aim will be to expand and update the existing resource base to underpin mine feasibility work and approvals to ensure an immediate transition to open pit and/or underground feed after the tailings reprocessing.
Corbett adds: “We’re looking forward to reporting results from this upcoming drilling and extending the mine life at Mineral Hill so that it can positively contribute to the local region and create value for Kingston’s shareholders.
“The timing of the Mineral Hill acquisition could not be better, with our flagship Misima Gold Project in PNG now entering the final stages of the definitive feasibility study – which remains on track to be completed in Q1 2022.
“Mineral Hill will provide important cash flow and an enhanced development platform for Kingston as we transition from mining studies to a permitting and approvals phase at Misima.”