Kingston Resources Ltd (ASX:KSN) has set its development and expansion strategy for the Mineral Hill Gold and Copper Mine in New South Wales in motion, funded by a recent $10 million debt facility extended to the company by PURE Asset Management’s Resources Fund.
The Mineral Hill strategy is based primarily on expanding the resource base to fill an initial five-year mine plan to deliver gold and copper production consistently over that period.
The company expects to provide resource updates for the Pearse North, Pearse South and Southern Ore Zone (SOZ) deposits throughout the third quarter of this year, with mine planning already underway at the Pearse open pits and SOZ underground.
“Turning towards future production growth”
“With the conclusion of our highly successful initial drilling program at Mineral Hill, the team is now very excited to be turning towards future production growth with work now underway on resource and reserve updates, mine design and plant refurbishment,” Kingston Resources managing director Andrew Corbett said.
“We are fortunate to be able to leverage the brownfield nature of our operations at Mineral Hill. The partially mined open pit at Pearse South, a developed underground at SOZ, an existing plant and current approvals all contribute to what we anticipate will be a relatively low-cost, high return, re-start of hard rock mining at Mineral Hill.
“We are delighted to be working with PURE Asset Management (Resources Fund), who has recognised the opportunity at Mineral Hill.
“Through enabling the acceleration of the work programs required to restart mining, this funding package is set to deliver benefits to all shareholders.
“We look forward to working closely with the PURE team over the coming months and years.”
All approvals are in place for mining to begin, supported by the $10 million in funding secured from PURE Asset Management.
The extra funding will go towards plant refurbishment and mining restart, with $5 million available now and a further $5 million available upon achieving progress milestones.