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Kingston well-funded to accelerate Misima gold drilling
2 minute read
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.