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Kingston Resources (ASX:KSN) - Managing Director, Andrew Corbett - The Market Herald
Managing Director, Andrew Corbett
Source: Resource Stocks
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  • Kingston Resources (KSN) has completed a pre-feasibility study (PFS) for its Misima Gold Project in Papua New Guinea
  • The PFS has confirmed the project's potential to be a robust operation that'll produce 130,000 ounces of gold per year at an all-in sustaining cost (AISC) of $1159 per ounce
  • The gold mine boasts a strong production history of 230,000 ounces per year over 15 years
  • Kingston plans to leverage this to construct a new 5.5 million tonne per annum carbon-in-leach treatment facility and modern infrastructure
  • Additionally, Misima has announced a probable ore reserve of 48.3 million tonnes at 0.9g/t for 1.35 million ounces
  • It also reported a 12.5 per cent increase in the global mineral resource, which now sits at 144 million tonnes at 0.78g/t for 3.6 million ounces
  • Drilling is currently underway and geotechnical and metallurgical work is about to commence which will be included in next year's definitive feasibility study
  • Kingston is up 8 per cent and shares are trading at 27 cents

Kingston Resources (KSN) has completed a pre-feasibility study (PFS) for its wholly-owned Misima Gold Project in Papua New Guinea.

The PFS has confirmed Misima's potential to be a robust, large-scale, low-cost operation that will produce 130,000 ounces of gold per year at all-in sustaining costs (AISC) of $1159 per ounce over a 17-year mine life.

The project also boasts compelling economics, including a life-of-mine (LOM) revenue of $4.9 billion and $283 million in capital expenditure, including a $37 million contingency.

Misima also has a pre-tax net present value (NPV) of $822 million and a 33 per cent internal rate of return (IRR) at a gold price of US$1600 (roughly A$2189) per ounce.

However, these numbers jump to an NPV of $1.28 billion and an IRR of 48 per cent at the current spot gold price of US$1900 (roughly A$2599) per ounce.

The former Misima gold mine has a strong production history of 230,000 ounces per year over 15 years. The company plans to leverage this to construct a new 5.5 million tonne-per-annum carbon-in-leach treatment facility and modern infrastructure.

"This is a significant milestone for all stakeholders in the Misima Gold Project, and represents a meaningful step towards our goal of becoming a substantial new mid-tier Asia-Pacific gold producer," Managing Director Andrew Corbett said.

In addition to the PFS, Kingston has reported a maiden JORC probable ore reserve of 48.3 million tonnes at 0.9g/t for 1.35 million ounces. This is alongside a 12.5 per cent increase in the global mineral resource, which now sits at 144 million tonnes at 0.78g/t for 3.6 million ounces.

Last month, Kingston restarted drilling at Misima following lifted restrictions. Drilling is aimed at identifying near-surface ounces to deliver ore feed for the first few years of the operation.

The company has now identified more target areas, including the Kulumalia, Umuna East, Kobel and Maika, and the Abi targets.

Drilling will continue at the project and first results are expected in the first quarter of next year. Additionally, environmental baseline, and metallurgical and geotechnical work are now underway and will be incorporated into the definitive feasibility study (DFS). The DFS is expected to begin by mid-2021.

Kingston is up 8 per cent and shares are trading at 27 cents in midday trade.

KSN by the numbers
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