Kingston Resources : 39% increase in Indicated Resource at Misima to 2.5Moz Au to underpin Definitive Feasibility Study

Published: 2021-09-16 10:39:10 ET KSN.AX

Kingston Resources Ltd (ASX: KSN) is pleased to report a significant upgrade to the JORC 2012 Mineral Resource Estimate for its flagship Misima Gold Project, PNG, incorporating the results of recent successful drilling programs and updated gold price assumptions.

The updated global Misima Mineral Resource has delivered a 39% increase in Indicated gold ounces and 6% increase in total gold ounces. The total Misima Resource now stands at 169Mt @ 0.71g/t Au and 4.1g/t Ag for 3.8Moz Au and 22.1Moz Ag, including an Indicated Resource of 97.7Mt at 0.79g/t Au and 4.3g/t Ag for 2.5Moz Au and 13.4Moz Ag. The updated Resource provides an enhanced platform from which to advance mining studies, with the significant increase in Indicated ounces highlighting the potential to deliver a step-up in Ore Reserves following completion of the DFS in Q1 2022.

Kingston Resources Managing Director, Andrew Corbett, said: 'This is a great result for Kingston shareholders, with the substantial upgrade in resource classification firmly establishing Misima as one of the most exciting new mid-tier gold development opportunities in the Asia-Pacific region. The increase in overall ounces, and particularly the 39% increase in Indicated ounces to 2.5Moz, establishes a fantastic platform for the ongoing DFS work to build upon.

Our refined geological model for the Umuna deposit represents a key step forward for the project and further reinforces the potential for Misima to be a large-scale, long-life, lowcost gold mine. 'A special thanks goes to the Kingston geological team, headed up by our Chief Geologist Stuart Hayward and Exploration Manager Andrew Harwood. Delivering this Resource update on schedule for the DFS has been challenging given the complex COVID-19 operating environment. The team has significantly advanced its understanding of the mineralisation at both Umuna and Ewatinona, and we are all looking forward to building on this knowledge and delivering on the continued growth potential as we advance Misima towards development.

'Looking ahead, there are considerable operational and economic benefits to be unlocked by focusing on Ewatinona and Umuna. Both areas leverage off previous mining access which remains in place, they have both been mined historically, and had a combined total of over 90 million tonnes of ore processed through a standard CIL plant. In November last year we completed our PFS on Misima which demonstrated robust project economics and provides the foundation for the current DFS due for completion by March next year.

'On the ground, drilling is currently focused on completing the geotechnical program required for the DFS, which will then transition to focusing on high-grade shallow exploration targets at Umuna East, Kobel/Maika and Abi. Our Permitting, Environment and Community team lead by Geoff Callister is on track to complete the ESIA (Environmental and Social Impact Assessment) and submit applications for the Misima Project approvals alongside the DFS results in March 2022. Community support and engagement remains a priority for Kingston and the Misima people, and we acknowledge and are grateful for the ongoing support we are receiving.' The Misima Resource update has focused on updating the geological model at Umuna and incorporating infill and extensional drilling undertaken by Kingston, while maintaining the Pre-Feasibility Study (PFS) assumptions around cut-off grade. Given the stronger gold price environment, the Resource is now reported within a US$1,800 pit shell, compared with the November 2020 Resource which was reported within a US$1,700 pit shell.

The Umuna deposit remains a priority target for further expansion, and remains open in several directions and at depth. Recent drilling and the updated geological model have identified a number of drill targets to be followed up following the completion of the current geotechnical drill program. Recent work has also confirmed two additional exploration targets at historic Placer starter pits, Kobel and Maika. These are located between Umuna and Ewatinona and each have mineralisation in the pit floors. A number of historic drill intersections lie beneath the pits, and both pits have essentially had no follow up exploration since Placer ceased mining them. Given the success in identifying and advancing Ewatinona as a starter pit, Kingston intends to replicate this process at Kobel and Maika.

About Kingston Resources

Kingston Resources is a metals exploration company which is focused on exploring and developing the worldclass Misima Gold Project in PNG. Misima hosts a JORC Resource of 3.8Moz Au and an Ore Reserve of 1.35Moz. Misima was operated as a profitable open pit mine by Placer Pacific between 1989 and 2001, producing over 3.7Moz before it was closed when the gold price was below US$300/oz. Kingston has concluded a Pre-Feasibility Study for Misima and is continuing to advance development activities. The Misima Project also offers outstanding 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. In addition, Kingston owns 75% of the high-grade Livingstone Gold Project in Western Australia where active exploration programs are also in progress.

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