The sale of its lithium tenements concluded in August 2018 and in the same month, the earn-in at Misima Gold Project was completed, increasing the company’s ownership from 49% to 70%.
Kingston is now primarily focused on advancing the opportunity at Misima, with Livingstone being a low-cost exploration project that it believes also adds value for shareholders.
Previously operated by Placer Dome Inc, the Misima Gold Project has produced 3.7 million ounces of gold at an average grade of 1.46 g/t gold and 22.2 million ounces of silver at an average grade of 15.6 g/t.
The company sees upside in several under-explored areas with exploration focused at Ginamwamwa, the first target outside the current 2.8-million-ounce resource where a geochemical program was finalised in December 2018 ahead of drilling at the site in early 2019.
Trenching at East Ginamwamwa extended a large area of high-grade shallow gold and results included:
14 metres at 17 g/t with fine visible gold;
2 metres at 140 g/t; and
12 metres at 9.68 g/t.
At the time Kingston Resources managing director Andrew Corbett said: “Ginamwamwa is continuing to deliver some amazing gold grades near surface.
“We are seeing bonanza gold grade immediately west of some artisanal workings where we identified gold veins in September and 100 metres further east of that we are seeing more high grades in an intersection of 8 metres at 14.2 g/t with individual samples up to 39 g/t.”
Ginamwamwa is about 2 kilometres southwest of the historical Umuna pit and, as a Kingston discovery, was not drilled by Placer during their 15-year operational period.
First drilling at the site began in January 2019 and assays of five diamond holes drilled into the main Umuna lode confirmed thick gold zones beneath the old Misima pit in February 2019.
Having tested a range of locations along the Umuna Shea, the company’s exploration strategy is now on discovering and defining near-surface satellite mineralisation at prospects including Ginamwamwa, Quartz Mountain and Ara Creek.
At Livingstone, Kingston decided to follow-up the success of its October 2018 drilling with a reverse circulation program planned to take place in the first half of 2019.
The program will test the depth extent of mineralised lodes below the oxide zone as well as infill aircore drill spacing, building towards estimation of a maiden inferred mineral resource.
Highlights returned from the drilling include:
20 metres at 2.94 g/t from 4 metres;
8 metres at 3.03 g/t from 12 metres;
4 metres at 76.25 g/t from 88 metres; and
4 metres at 3.49 g/t from 4 metres, including 24 metres at 1.06 g/t from 24 metres.
The company also increased its land holding at its 75%-owned gold project in 2018 to 377 square kilometres, adding an additional 170 square kilometres to its tenement area.
Kingston’s Livingstone tenements host the historic Livingstone’s Find gold workings, which is the largest historical gold producing area in the Robinson Range Sheet, having produced 1,260 ounces at an average grade of 21.85 g/t.
Kingston share price and volume
At December 31, the company had $3.3 million cash on hand and the current market capitalisation is around $23.2 million.
Market metrics suggest a valuation uplift as work programs at Misima progress.
Comparison of Kingston with its peers