Stunning exploration results for Kingston Resources to feed into resource update
Kingston Resources Limited (ASX:KSN) has released further outstanding high-grade channel sampling results from the Ewatinona deposit, located within the Quartz Mountain area at the company’s 2.8 million ounce Misima Gold Project in PNG.
Such was the tenor of the results, Kingston traded as high as 20.5 cents on Monday morning representing an increase of approximately 25% relative to Friday’s closing price of 16.5 cents.
These outstanding results come from one 200 metre long continuous channel situated in the north-west corner of the existing Ewatinona Pit which followed the contour of the bench wall.
They included 70 metres at 5 g/t gold including 28 metres at 8.1 g/t gold.
Another promising intersection was 4 metres grading 11 g/t gold.
These channel samples were designed to confirm the location of the mineralised structures that trend NNW-NW through the pit as indicated below.
Resource to be updated in June quarter
The high-grade results are extremely encouraging and confirm the geometry of the interpreted mineralised trends, as well as the tenor of gold mineralisation in the western section of the resource.
Commenting on the significance of these results in terms of establishing a relatively early stage starter pit, Kingston Resources managing director Andrew Corbett said, “70 metres at 4.99 g/t gold is a spectacular result from the channel sampling in the Ewatinona Pit.
‘’These results help confirm the geological interpretation and grade distribution of the Western Ewatinona area.
“Importantly, these results also increase our confidence in Ewatinona as our preferred starter-pit area as they demonstrate the presence of high-grade gold mineralisation in the pit floor that is waiting to be mined.
“Assays are pending for drill holes that test the westerly extent of the resource within the same mineralised trend that hosts these exceptional high-grade channel samples.
“The updated Misima Resource will include an update at Ewatinona which will factor in results from the recent drilling that the company was able to conclude before suspending exploration activities in late March.
‘’We anticipate being able to announce the updated resource this quarter.”
Given the high calibre of the exploration results that have been released recently, the updated resource could have a substantial impact on the company’s valuation, potentially resulting in significant share price upside.
The following shows the recent channel samples along with historical drilling. These new results are located along strike from mineralisation in the historical drill holes in the central area of the Ewatinona pit.
It is evident that the vertical holes adjacent to the surface samples have not adequately tested the mineralised structures in that area, opening up the opportunity to fully define the mineralised structures and include that information in an updated resource at a future point.
Kingston will be undertaking further resource definition drilling with the aim of upgrading the classification of an additional portion of the mineral resource in the next model.
This is likely to be completed in conjunction with the pre-feasibility study, another key milestone for the group.