Kingston eyes off starter pit at Misima
Less than a fortnight after moving to full ownership of the 2.8 million ounce Misima Gold Project in Papua and New Guinea, Kingston Resources Limited (ASX:KSN) has released an updated geological model for the highly prospective Quartz Mountain region taking into account recent drilling and exploration data.
An extensive internal review of existing Quartz Mountain geological data complemented by recent drilling, geochemical data and structural mapping undertaken by Kingston has concluded that mineralisation in the area is primarily structurally controlled.
The new geological interpretations open up new targets for Kingston to explore, and Stage II drilling is already underway.
Central to the company’s revised strategy is increasing the Ewatinona Resource as this would represent a key element of Kingston’s redevelopment strategy for Misima with the potential to underpin a starter pit for the project.
It is worth noting that geochemistry work at Ewatinona revealed outstanding surface grades of 1.5 metres at 29.5 g/t gold and 1.2 metres at 21.5 g/t gold.
Numerous share price catalysts in 2020
Management certainly has plenty to work with in terms of prioritising its plans for 2020, having identified further gold mineralisation in established areas, while also having significant drilling success in other zones that tend to support assumptions regarding extensions to known trends.
The following map highlights the sizeable amount of ground Kingston has to work with in 2020, and particularly given the group has multiple targets in its sights the company is shaping up as a news flow driven story over the next 12 months.
Reflecting on the successful year of exploration, managing director Andrew Corbett said, “It is fantastic to see our recent work on advancing our understanding of the Misima geology paying off at Quartz Mountain.
‘’This work is expected to help upgrade the existing 220,000 ounce Inferred Resource at Ewatinona to Indicated status, which is an important step in delivering a starter pit for the project.’’
Historical drilling ill-directed
Many of the historic holes at Quartz Mountain are interpreted to have missed or poorly tested the mineralisation, as they were drilled at a near vertical angle reducing the likelihood of intersecting the vertical structures.
Kingston’s updated interpretation presents new opportunities and will inform exploration activities in the region going forward, including the current Stage II drill program which is focused on the Ewatinona and Abi areas.
Drilling at Abi will follow-up on the high-grade intersection from Hole GDD044, which returned 23.6 metres at 2.9 g/t gold from 7.4 metres, including 13.5 metres at 4.6 g/t gold from 17.5 metres, as well as testing structural targets identified from the initial drilling program and recent fieldwork.
Specifically referring to Ewatinona and Abi, Corbett said, “We are also pleased to be back drilling in the Quartz Mountain area, with the aim of upgrading and expanding the Ewatinona Resource and following-up our exciting first hit at Abi.
‘’The potential to delineate high-grade, near-surface ounces within this region is outstanding, with the Quartz Mountain area representing a high priority target to build on our existing 2.8 million ounce resource base.
‘’The close proximity of this area to existing roads and the short haulage distance to the historical mill location could provide material benefits to our future development strategy.’’
Corbett said that the company should also be relaying further drilling results from both Misima North and Umuna East in the near term.
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