Kingston delivers promising news at Quartz Mountain
Kingston Resources Limited (ASX:KSN) has provided an update on the current exploration activity at its flagship 2.8 million ounce Misima Gold Project in Papua and New Guinea (PNG).
The world-class Misima project is management’s key focus as it contains a robust resource and a production history of over 3.7 million ounces, as well as outstanding potential for additional resource growth through exploration success.
Kingston currently owns 70% of the Misima project, as well as 75% of the Livingstone Gold Project in Western Australia.
Central to today’s update is promising news regarding assays from drilling at Ewatinona that has confirmed the potential of the resource, as well as indicating it is open in all directions.
Drilling highlights included 20 metres at 1.8 g/t gold from 78 metres and 6.6 metres at 1.9 g/t gold from 7.5 metres.
Ewatinona currently contains a resource of 200,000 ounces and as indicated below it sits within the Quartz Mountain area of the Misima Gold Project.
Placer historically mined gold and silver from the Ewatinona, Kobel and Maika pits producing a combined 147,000 ounces at 1.8 g/t gold.
The current Ewatinona resource is less than two kilometres from the historical mill location.
Kingston’s initial 12-hole diamond drill program at Ewatinona was designed to confirm the historical Placer drilling, provide structural data and update the geological model.
The highly encouraging assay results confirm the potential of the resource which remains open in all directions.
The increased understanding of the geology has resulted in an additional hole being recently completed, and assays are pending.
Data evaluation and further drilling at Waipuna
During the September quarter a review of all current and historical data will be completed, including Leap Frog modelling of the resource before the next round of drilling at Ewatinona.
Drilling continues on a second target in the Quartz Mountain area, the Waipuna prospect.
This was recently identified by a modern reinterpretation of historic geochemical data combined with geophysics and LiDAR information.
Looking at the broader picture, the existing 2.8 million ounce Misima resource may already be of sufficient scale to support a potential long-life mining operation.
Current exploration targets are prioritised with a view towards delivering new near-surface mineralisation.
Such targets are likely to have the largest impact on project economics as access to near surface ounces can boost early years’ cash flow while access to the main Misima resource is developed.
While this appears to be a logical approach, it should be noted that feasibility or pre-feasibility studies have yet to be completed to confirm this hypothesis, and investors should be aware that there is currently no certainty of future mine development.
As indicated below, the Quartz Mountain area is one of a number of such targets Kingston plans to drill over the balance of 2019.
Existing resource close to infrastructure
The Quartz Mountain existing resource, extensive surface mineralisation and proximity to the mill site make it an ideal target.
Summing up recent developments, Kingston Resources Limited managing director, Andrew Corbett said, “The Quartz Mountain area is certainly shaping up to be a high priority target.
‘’Our recent Ewatinona drill results have confirmed the historic resource potential and provided current geological knowledge to help our team design the next phase of step out drilling on the Ewatinona resource.
‘’In addition to Ewatinona there are number of near mine prospects that have been identified within the Quartz Mountain area.
‘’These targets are all exciting opportunities for Kingston, with outstanding potential to deliver additional near surface ounces.
‘’Our current exploration strategy is firmly focused on establishing sufficient ounces from these targets to commence mining studies.”
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.