Kingston managing director Andrew Corbett has been extremely excited with the results of the pre-feasibility study (PFS) which shows that Kingston Resources can revive the Misima gold mine back to life.
Misima can come out with 130,000 ounces per year over a 17-year mine life.
“This is a significant milestone for all stakeholders in the Misima gold project and represents a meaningful step towards our goal of becoming a substantial new mid-tier Asia Pacific gold producer,” he said.
The company described the PSF as a project with “compelling” economics, “outstanding” growth potential and low capital intensity. The study also predicts gold can be produced at a cost of A$1,159 per ounce over the life of a mine as compared with its present Australian gold cost of around $2,560/oz.
Misima now has a reserve of ore at 1.35 million ounces for a 10-year life on reserve ounces alone. In addition, there has also been a 12.5% increase in the global mineral resource from 3.2Moz to 3.6Moz.
Capital costs are at $283 million - which involves the $37 million provision for contingencies, reflecting the advantages of operating on a brownfields site with important structures in place.
With the lifting of the COVID restrictions, Kingston resumed drilling at Misima with two diamond rigs. The 8,000m project includes extensional and infill drilling at the southeast end of the proposed Umuna pit, and the company’s 2019 Abi discovery.
Kingston also plans to leverage off a “strong production history” with modern infrastructure on the footprint of the historic mine and carbon in-leach treatment plant.
Meanwhile, Mick Wilkes is poised to take over the role of the chairman at Kingston Resources. He has more than 35 years of experience in this industry and he has been successful in developing copper mines and major gold in the country globally.
