Kingston Resources Ltd (ASX:KSN) has awarded a process plant design study services contract for the definitive feasibility study (DFS) at Misima Gold Project in PNG to Lycopodium (ASX:LYL) Minerals Pty Ltd a wholly-owned subsidiary of Lycopodium Limited.
The DFS work program is well advanced with metallurgical test-work complete, geotechnical programs underway and additional engineering study packages awarded.
Mine planning is expected to begin following the pending mineral resource update, which is anticipated this quarter.
Alongside the DFS, Kingston continues to advance Environmental and Social Impact Assessment (ESIA) and work programs associated with the mining lease application with all works remain on track for completion in the first quarter of 2022.
“Established track record”
Lycopodium brings global experience in gold process plant design and has significant experience working on major projects globally including in Papua New Guinea.
Kingston Resources managing director Andrew Corbett said: “We are delighted to be working alongside Lycopodium to complete our DFS for Misima.
“Lycopodium is a world leader in gold process plant engineering, with an established track record of project delivery in Papua New Guinea.
“Lycopodium has completed studies for clients in PNG including PanAust, Newcrest, Harmony Gold (NYSE:HMY), Ok Tedi, K92 Mining, St Barbara and Barrick across both greenfields and brownfields projects.”
Potential for resource growth
Kingston Resources is a metals exploration company focused on exploring and developing the Misima Gold Project in Papua New Guinea.
Notably, Misima hosts a JORC resource of 3.6 million ounces of gold and an ore reserve of 1.35 million ounces.
Kingston has concluded a pre-feasibility study (PFS) for Misima and is continuing to advance development activities.
Promisingly, the Misima Project also offers potential for additional resource growth through exploration success targeting extensions and additions to the current resource base.
Strong Misima credentials
Corbett adds: “A key focus for Kingston during the DFS will be to leverage Lycopodium’s global experience to streamline the project schedule, optimise project capital and maximise gold production.
“Alongside the expertise that Lycopodium will bring, the Misima Gold Project also continues to benefit from having access to extensive historical production data, which simplifies work programs and reduces future uncertainties during the mining studies phase.
“The Misima PFS1 completed in November last year confirmed a robust, large-scale, long-life, low-cost operation delivering average annual production of 130,000 ounces at an extremely attractive life-of-mine all in sustaining cost of below A$1,200/ounce.
“These outstanding results confirm Misima’s credentials as one of the best-undeveloped projects in the Asia-Pacific region, with the opportunity for Kingston to continue to unlock further value through the imminent Mineral Resource update, DFS and project approvals program.”
- Ephrems Joseph