Managing director Andrew Corbett said the strong response from investors during the bookbuild reflected the quality of the company’s gold assets and the potential for a value uplift.
Following a ‘significant’ increase in the JORC resource estimate at the Misima Gold Project in PNG to 105 million tonnes at 0.93 g/t for 3.21 million ounces, the company is now focused on completing a pre-feasibility study and ore reserve estimate by year-end.
The updated Misima resource announced on May 21 delivered a 15% increase in total gold ounces and 30% increase in total silver ounces, confirming the project’s status as one of the most significant mid-tier gold development opportunities in the Asia-Pacific region.
Key growth opportunities
Kingston’s primary focus in terms of ongoing drilling at Misima for the remainder of 2020 will be on upgrading and potentially extending both the Umuna and Ewatinona resources with near-surface opportunities.
Key growth opportunities at Umuna include:
- Follow-up drilling and resource model update at Umuna and Umuna East, building on all drilling completed to date;
- Extensional and infill drilling of the southern extensions of Umuna at Kulumalia; and
- Additional Umuna extensions including Tonowak and Padocol.
At Ewatinona Kingston will target:
- Resource drilling to both upgrade and extend the Ewatinona resource;
- Follow-up extensional targets outside the current resource identified from recent fieldwork;
- Follow-up drilling on the Abi discovery 600 metres southeast of Ewatinona; and
- Resource model update to include additional nine holes for which assays were received post Resource cut-off date.
Kingston’s 75%-owned Livingstone Gold Project, northwest of Meekatharra in WA, is an exploration project with an inferred resource of 49,000 ounces.
There are also several high-grade historical intersections, strong soil anomalies and historical workings which indicate excellent potential for additional discoveries.
The Kingsley prospect was discovered in 2018 and comprises intersections including 10 metres at 11.95 g/t gold from 20 metres, 5 metres at 3.68 g/t from 12 metres and 2 metres at 13.88 g/t from 71 metres.
Best results at the Homestead prospect include 18 metres at 7.85 g/t from 68 metres, 5 metres at 20.5 g/t from 3 metres and 7 metres at 12.59 g/t from 35 metres.
RC drilling program underway
A new tenement on the project (E52/3667) was granted in May and covers 170 square kilometres, adding 13 kilometres of strike over the prospective faulted contact between the Archean Yilgarn Craton to the south and the mafic and ultramafic of the Trillbar Complex to the north.
A second round of reverse circulation (RC) drilling is being planned for Kingsley, which will contribute towards reporting a maiden JORC-compliant resource estimation.
Geological mapping will also be extended to the east to incorporate the Homestead deposit and Winja prospect.
Securing remaining interest
Documentation has largely been finalised for Kingston’s acquisition of the remaining interest in the Misima Gold Project held by its JV partner, Pan Pacific Copper Co Ltd, however, both parties have agreed to extend the timeline for executing the agreement.
Kingston continues to increase its equity interest in Misima as it funds exploration and development activities.