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Kingston Resources intersects further gold and high-grade silver mineralisation at Kulumalia

Published: 11:12 10 May 2021 AEST

Kingston Resources Ltd - Kingston Resources intersects further gold and high grade silver mineralisation at Kulumalia
The company is on track for a mineral resource and ore reserve update in the September quarter.

Kingston Resources Ltd (ASX:KSN) (FRA:RZZ) has received encouraging new gold and silver results from an ongoing 8,000-metre resource drilling program at Kulumalia, at the southern end of the main Umuna orebody of its flagship 3.6 million ounce Misima Gold Project in PNG.

Recent drilling returned multiple wide mineralised intercepts outside of the reserve pit shell, increasing geological confidence in the existing resource and reserve models and also delineating new mineralisation beneath the current life-of-mine plan. 

 Best results include: 

  • 20.7 metres at 2.52 g/t gold and 86.1 g/t silver from 99.3 metres;
  • 17.5 metres at 2.28 g/t gold and 2.5 g/t silver from 221.9 metres; and
  • 8 metres at 1.39 g/t gold and 3.6 g/t silver from 210.2 metres.

Silver results

Notably, drilling also returned high-grade silver assays within and immediately adjacent to the gold mineralisation, which has the potential to improve the economics of mining at Kulumalia due to the silver credits gained offsetting the gold production costs.

Results include:

  • 2 metres at 192 g/t silver and 0.68 g/t gold from 87 metres; and 
  • 37.4 metres at 90.9 g/t silver and 1.5 g/t gold from 91.6 metres.

“De-risking project”

Drilling has confirmed and extended mineralised intervals within and below the current life-of-mine plan, increasing confidence in the existing resource and potentially highlighting additional mineable material in this area of the Umuna Pit.

Kingston managing director Andrew Corbett said: “This latest round of assay results at Kulumalia builds on the encouraging results released in March.

“This area is shaping up to be an important component of Kingston’s development strategy for Misima. 

“It is particularly pleasing to see some of the deeper holes drilled at Kulumalia to date returning high-grade mineralised intervals. 

“This shows that gold mineralisation continues at depth in fresh rock and confirms that Kulumalia is more than just a source of shallow oxide ore – it is an extremely well-mineralised component of the main Umuna trend.

“Kingston’s geology team is doing a great job de-risking the project and adding value to the proposed mine production plan, which will ultimately help to strengthen Misima’s credentials as a long-life, low-cost gold operation.” 

Kulumalia plan map showing drill hole collars in resource, production target and reserve pit shells. 

Next steps 

Drilling of the Cooktown stockpile has been completed and both drill rigs are moving back to Kulumalia to continue the resource definition program that builds on the updated geological interpretation to include drill testing of near-surface gold mineralisation in structures in the hanging wall of the main gold-rich zone, strike extensions to the east and west, and in-fill of existing and intermediate sections. 

The resource definition program will be followed by a program of geotechnical drilling in the second half of 2021, which will contribute to the ongoing definitive feasibility study (DFS).

Following completion of the drill program, assay results will feed into an updated ore reserve estimate for the Misima Gold Project, which is expected to be delivered during Q3 this year.

Kingston Resources makes significant near mine discovery at Mineral Hill

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on 2/11/23