Kingston well-funded to accelerate Misima gold drilling

By Jonathan Jackson. Published at Aug 19, 2019, in Mining

Having raised $3.1 million, Kingston Resources (ASX:KSN) is ready to accelerate its gold drilling programs at its Misima Gold Project in PNG.

Kingston raised the cash through a placement of the entire shortfall from its pro-rata non-renounceable rights issue on 3 May 2019.The shortfall was placed to eligible existing and new institutional and sophisticated investors at the Entitlement Offer price of 1.6c per share.

The new shares will be dispatched to shareholders on 23 August 2019.

These funds will be used to fast track ongoing activities at the 2.8Moz Misima Gold Project, with a second diamond drill rig to be put into operation next quarter.

Note, the existing 2.8 million ounce Misima resource may already be of sufficient scale to support a potential long-life mining operation.

The second rig will focus on resource extension and in-fill drilling, meaning KSN will have one rig focused mainly on resource development and a second rig targeting more greenfields areas with the potential for new discoveries.

Kingston has also commenced work on the data collection for the project environmental baseline.

“This is a great result which means we are now well-funded to accelerate our ongoing exploration program at the world-class Misima Gold Project and progress exploration at the Livingstone Gold Project in WA,” Kingston Resources Limited Managing Director, Andrew Corbett said.

“At Misima, we remain focused on delivering near-surface ounces outside the main Umuna Resource. As part of this step-up in activity, we expect to activate the second diamond drill rig, which is currently on the island being prepared for commissioning. Meanwhile, the drilling program currently underway at Livingstone is progressing to schedule.”

Kingston will report drilling results from both Misima and Livingstone over the balance of the current quarter.

Misima has a production history of over 3.7 million ounces, as well as outstanding potential for additional resource growth through exploration success.

Assays from drilling at Ewatinona released in July 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 grams per tonne (g/t) gold from 7.5 metres.

“This is big, it’s got scale. It’s got multiple potential targets in addition to the current known Resource. It’s in elephant country, the right real estate for monster projects,” Corbett said.

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.

Publishers Notice

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.

Thanks for subscribing!