Kingston Resources has plans to establish itself as a leading mid-tier gold and copper producer.
Sharing the outlook for its Misima gold project in the Solomon Sea, PNG, at its annual general meeting – the miner might not be far off its goal.
A definitive feasibility study at the site revealed large scale, long-life, low-cost open pit gold and silver mine 625km east of Port Moresby.
Though the company is still on the lookout for optimal funding and development options, the $6.1 billion life of mine revenue potential makes it an attractive target for investment.
The mine boasts a resource estimate of 3.8 million ounces (Moz) of gold and 22.1 Moz of silver, which the company described as a “high leverage opportunity” due to the price of gold.
Kingston also emphasised Misima’s extensive mining history, which began in 1888 with the first discovery of gold at the site.
Misima was operated by Place Dome as an open pit gold mine from 1989 to 2004, producing 3.8Moz across its operational life. Kingston is confident the mine has more to give.
Employing over 90 per cent of its workforce from PNG, Kingston intends to continue bringing economic benefits to the island nation through community support and engagement.
The company credited its experienced management team with maximising its returns on its existing assets at Misima, with the team aiming to leverage the site’s cashflow for its Mineral Hill gold operations in New South Wales.
Production was up 256 per cent at Mineral Hill in the 2022-23 financial year (FY23), with a gold production of 16,068 ounces.
Sales were up 263 per cent to $44.7 million, and the operating cash flow jumped 2514 per cent to 16.9 million.
Kingston acquired Mineral Hill from Quintana MH Holdings in early 2022, and has since initiated work to recommence open pit and underground mining, with a life of mine set to continue through to 2027.
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