Kingston Resources Ltd (ASX:KSN) is ramping up its gold tailings operation at the Mineral Hill Mine in western New South Wales.
Mining and processing rates at the asset have increased to 700,000 tonnes per annum.
Gold recoveries are at 87% of the March target to date — and they’re expected to continue improving over the next quarter as production progresses deeper into the tailings storage facility (TSF).
The TSF project is on track to deliver positive cash flow for March and initial results from the ongoing Mineral Hill exploration program are expected to be reported shortly.
"Great result through to March"
Commenting on the Mineral Hill production rates, Kingston managing director Andrew Corbett said: “I would like to thank the entire Mineral Hill team for a successful transition to Kingston ownership.
“The focus on-site to deliver safe and efficient production has been outstanding.
“While there have been several weather events and a number of COVID-related staff disruptions, the team has delivered a great result through to March.
“I would like to acknowledge our site general manager Geoff Merrell for his focus on ensuring the Kingston values are being embraced as we ramp up production.
“During February we saw the results of several steps taken to ensure that throughput increased to targeted rates and in March we are seeing an increase in recoveries associated with processing ore from deeper in the tailings facility.
“During the June quarter, we expect to maintain current throughput rates, while recoveries are expected to continue to climb as we move away from the oxide layer on the surface of the TSF.
“We look forward to providing a full Mineral Hill update in our March quarterly report.
“Ahead of that, we anticipate being able to update the market shortly with initial results from the ongoing Mineral Hill exploration program.
“The current exploration program is aimed at resource development to support the restart of both open pit and underground mining at Mineral Hill.
“To date, we have completed five diamond holes at Pearse North and four diamond holes into the SOZ A Lode.
About Kingston Resources
Kingston Resources is a gold producer focused on building a mid-tier gold and base metals company.
It is producing from the Mineral Hill operation in NSW and advancing its flagship development asset, the 3.8-million ounce Misima Gold Project in Papua New Guinea.
Mineral Hill is a gold and copper mine in the Cobar Basin. 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 is 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 at the completion of the tailings reprocessing.
Misima hosts a JORC resource of 3.8 million ounces and an ore reserve of 1.35 million ounces and Kingston is completing a definitive feasibility study in the first half of 2022.
Misima was operated as a profitable open-pit mine by Placer Pacific between 1989 and 2001, producing more than 3.7 million ounces before it was closed when the gold price was below US$300 an ounce.
The Misima Project also offers potential for additional resource growth through exploration success targeting extensions and additions to the current resource base.
Kingston’s interest in Misima is held through its PNG subsidiary Gallipoli Exploration (PNG) Limited.