Kingston Resources Ltd (ASX:KSN) has reported a new batch of “outstanding” high-grade gold hits from its pioneer drilling campaign at the Mineral Hill Mine’s Pearse North deposit in Cobar, NSW.
The precious metals explorer and gold producer returned 4.2 g/t gold and 37 g/t silver over 39 metres within its first diamond drill hole at the gold deposit.
What’s more, drilling activity has confirmed substantial gold mineralisation lies outside the current ore reserve pit shell, which was determined using a US$1,300/ounce gold price.
Investors responded positively to today’s news, with shares up 8.82% to 18.5 cents in mid-morning trade.
Acquisition paying dividends
Kingston Resources managing director Andrew Corbett said of the program: “Kingston chief geologist Stuart Hayward and his team have done a fantastic job establishing the company’s maiden exploration program at Mineral Hill.
“We are very excited to be able to share such positive results from our initial drilling campaign so soon after completing the acquisition earlier this year.
“We anticipate receiving the balance of the results from the Pearse North drilling in May and we look forward to providing the market with further updates.
Kingston officially took on the producing Mineral Hill Mine asset in January after agreeing to purchase the project in November last year.
Alongside current production, exploration is focusing on near mine gold and copper production opportunities from both open-pit and underground targets located on the existing mining leases.
The plan is to expand and update the existing resource base, which underpins mine feasibility work and approvals.
From there, Kingston hopes to immediately transition to open pit and/or underground feed once tailings reprocessing is finished.
The results are in
The first diamond drill hole at Pearse North returned:
- 39 metres at 4.2 g/t gold and 37 g/t silver, including:
- 15 metres at 7.3 g/t gold and 44 g/t silver from 38 metres, including:
- 3 metres at 26.67 g/t gold and 27 g/t silver from 38 metres;
- 2.4 metres at 6.9 g/t gold and 21 g/t silver from 42.7 metres;
- 1.4 metres at 8.4 g/t gold and 194 g/t silver from 48 metres;
- 4.2 metres at 1.2 g/t gold and 33 g/t silver from 55.8 metres, including:
- 0.7 metres at 2.8 g/t gold and 102 g/t silver from 55.8 metres;
- 7.4 metres at 5.1 g/t gold and 35 g/t silver from 64.6 metres, including:
- 2.4 metres at 11.2 g/t gold and 22 g/t silver from 65.5 metres; and
- 1.6 metres at 5.1 g/t gold and 66 g/t silver from 74 metres.
What’s next?
There’s a lot more to explore at the Mineral Hill deposits.
An RC drill rig has been mobilised to site to kick off resource extension and infill drilling at Pearse North, which will preclude initial exploration campaigns at the Jacks Hut and Missing Link prospects.
In the meantime, diamond drilling at Mineral Hill's Southern Ore Zone (SOZ) copper-gold deposit is currently underway, with four holes completed and another five holes pending.
All holes at SOZ are targeting lode mineralisation to feed into the updated mineral resource estimate, and every hole to date has exhibited visual sulphide mineralisation.
Corbett continued: “Next steps in the development of the Pearse open pits involve a mineral resource update, anticipated in the September quarter this year.
“[This] will provide further support for potential future mining at the Pearse pits following completion of the current tailings processing operation.
“Diamond drilling has now transitioned to the copper-gold SOZ underground deposit, with extensional RC drilling now underway at Pearse North.
“We look forward to providing ongoing exploration updates from drilling at Mineral Hill.”