Numerous share price catalysts on the horizon for Kingston Resources

By Trevor Hoey. Published at Jun 30, 2020, in Mining

There is plenty of positive news emerging from Kingston Resources Limited on multiple fronts (ASX:KSN) as it prepares for exploration and progresses a prefeasibility at two of its projects, and the highly prospective nature of upcoming news has attracted the attention of brokers.

Reg Spencer from Canaccord Genuity is particularly upbeat on the company, recently reaffirming his speculative buy recommendation and price target of 85 cents per share.

This implies share price upside of more than 400% from the company’s current price of 16.5 cents.

On one hand, the quantum of such a rerating may seem a stretch, but on the other, one only has to view the extensive newsflow that is imminent, particularly the PFS and reserve estimation work to understand that these could be the foundation for a significant rerating.

Macroeconomic conditions couldn’t be better for the company with the gold price at near-record highs, and the volatile economic environment suggesting there will be further support for the traditional safe haven precious metal.

Crunching the numbers, Spencer said, ‘’Kingston’s enterprise value to resource multiple of A$9 per ounce is well below the peer group weighted average of $58 per ounce which we consider unwarranted given Misima’s (PNG project) scale and near-term development potential.

‘’A positive outlook for the gold price and relative dearth of advanced gold projects of scale on the ASX further supports our favourable view.’’

5000 metres resource definition drilling program imminent

Management has just advised that a 5000 metre resource definition reverse circulation (RC) drilling program is set to commence next month at the Kingsley prospect in Western Australia.

The prospect is situated within the company’s 75%-owned Livingstone Gold Project, 140 kilometres north-west of Meekatharra within the Bryah Basin.

The upcoming drilling program has been designed from knowledge gained from the structural review conducted over the wider Livingstone Project, including Kingsley, in late 2019.

The Livingstone Project, including the Kingsley prospect can be seen on the map below.

The aim of the program is to define shallow oxide mineralisation that will contribute towards an initial Maiden JORC Compliant Resource Estimation.

Several holes have also been designed to further test potential depth extensions to the known mineralisation.

The program is fully permitted with mobilisation and drilling anticipated to commence by mid-July and concluding in August.

Final assays are expected from Livingstone by September.

Assays from Livingstone and drilling at Misima in September quarter

Kingston has also been successful in securing co-funding for a further 1000 metres of deep RC drilling at the Stanley Deeps prospect (see above) through R21 of the WA Government Exploration Incentive Scheme.

This drilling will be undertaken following completion of the resource definition program at Kingsley.

As we mentioned, Kingston should benefit from numerous share price catalysts over the next three months with one of the main ones being progress on the PFS for the group’s Misima Gold Project in PNG.

This work has already commenced and is now in full swing, with the appointment of a dedicated Study Manager in early June, together with the appointment of mining, geotechnical, metallurgical and environmental consultants.

Engineering consultants have been short-listed with an appointment anticipated in early July.

Commenting on these developments, Kingston Resources managing director, Andrew Corbett said,

“With this next round of drilling at Kingsley we are aiming to define a shallow oxide resource, as a base from which we can grow the project.


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

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.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X