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Corporate Spotlight

Kingston Resources Ltd is an ASX listed exploration and development company advancing the 2.8Moz Misima Gold Project in PNG and the Livingstone Gold Project in Australia.
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STOCKPILE CONFIRMED

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Historic mine stockpile confirmed at Misima 

ASX Announcement 20 March 2019


  • LiDAR survey confirms location of large low-grade gold stockpile 
  • Material was mined by previous operator Placer but never processed 
  • Historic records suggest potential for further gold stockpiles to be found


Kingston Resources Limited (Kingston or the Company) is pleased to report that a recent LiDAR (Light Detection and Ranging) survey has confirmed the location of a large stockpile of gold mineralised material at our Misima Gold Project in PNG. This near-surface stockpile is not accounted for in the current 2.8Moz gold resource at Misima.


The survey has provided a highly accurate and detailed model of the surface terrain which has assisted in identifying historical mining topography, current and historic artisanal mining, as well as identifying potential geological features and determining water drainage patterns. This information will assist and enhance the broader drilling and exploration program.


A stockpile of mineralised material left in place by Placer has been confirmed at the Cooktown Dump (Figures 1), a large area adjacent to the Tonowak Pit reported to contain 3.6Mt of low-grade material averaging 0.5 to 0.7g/t Au1 . This dump, which was capped with topsoil and rehabilitated during the closure process, remains intact, with its current position matched against mine survey files created during mine closure.


When the mine was active, Placer’s economic cut-off was 0.7g/t Au for mill feed. Lowergrade material in the range 0.5 to 0.7g/t Au, was stockpiled. While the grade of the Cooktown Dump is modest, it is important to note that it represents loose rock, at surface and close to the likely location of a future processing plant. All of these factors reduce mining and processing costs. By calculating the volume of the Cooktown Dump LiDAR model and crossreferencing this against Placer’s Mine Closure Plan and survey files from 2000 to 2004, the Company has set an exploration target for the dump of 3.6Mt @ 0.5g/t to 0.7g/t Au for 58,000 to 81,000oz. Investors should be aware that the potential quantity and grade of the exploration target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.


The Company’s exploration strategy is now firmly focused on discovering and defining nearsurface satellite mineralisation at prospects including Ginamwamwa, Quartz Mountain, and Ara Creek. Adding near-surface resources is likely to enhance the economic potential of any possible future mining operation. The close proximity and minimal mining costs of this stockpile make it an excellent early feed source to any future development plan.


Exploration Target Methodology 

Tonnage 

The tonnage figure of 3.6Mt is taken from information and tables within the Misima Mine Closure Plan published in 2000. To check this, a digital model of the Cooktown Dump was created from the LiDAR data using Surpac software, assuming the dump was constructed on a flat surface as described in the closure report. The volume within this model is 2.44 million cubic metres. Using a bulk density range of 1.8 to 2.0t/m3 this equates to approximately 4.4 to 4.9Mt. After taking into account the fact that the dump is covered with a layer of topsoil capping the current dimensions agree closely with the reported tonnage.


The dump dimensions have also been checked against mine survey records from 2002 and 2004, both taken during the mine closure process, and the survey records match the 2018 LiDAR topography. As a result of these validation checks against the original report, the Company has chosen to express the exploration target tonnage as 3.6Mt rather than an indicative range.


Grade Range 

The assumed grade range of 0.5 to 0.7g/t Au is also taken from Placer’s report, as this was the standard material classification for sub-economic material stockpiled on the Cooktown Dump. The actual grade of the material is yet to be tested by drilling.


Validation 

Kingston has not directly tested this material, hence the categorisation as an exploration target. The Company will test the distribution and tenor of grade within the Cooktown Dump as soon as a suitable rig is available.


Cautionary Statement 

The potential quantity and grade of the exploration target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.


Kingston Resources Limited Managing Director, Andrew Corbett said: “The recently completed LiDAR survey has provided accurate and reliable topographic data and will continue to provide excellent information as the team progresses our current exploration strategy. The access to a potential low cost feed source provides a real boost to the Company’s ambitions to advance the Misima Gold project. The potential at Misima has certainly evolved over the last year, with the exploration upside becoming clearer as work advances. The Company continues to increase its equity ownership in the project since completing the 70% earn-in in August 2018, and we look forward to provide further exploration updates in the near term.”


Click here to view the full announcement

NOW DRILLING

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Kingston now drilling exciting new targets at 2.8Moz Misima Gold Project

Kingston Resources Ltd (ASX:KSN) is an ASX listed exploration and development company advancing the 2.8Moz Misima Gold Project in Papua New Guinea and the Livingstone Gold Project in Australia.

Misima Island is located 625km East of Port Moresby in the Solomon Sea. Misima was previously mined by Placer Dome (1989 to 2004), producing 3.7Moz at an average cost of US$218/oz. over its 15 year mine life.
The historic Misima mine now rehabilitated
The Misima Gold Project
 
The Misima Gold Project is a transformational opportunity for Kingston Resources Ltd, who have been undertaking drilling at the operation since May 2018. Through 2018 KSN tested a range of locations along the Umuna Shear beneath the old pit delivering some impressive results including 40m @ 3.17g/t Au. In 2019 the key focus for KSN is drill-testing the newly discovered exploration targets at Ginamwamwa, Quartz Mountain and Misima North. The results from KSN’s extensive geochemistry program conducted over these areas through 2018 are highly promising. For example, channel sampling results from Ginamwamwa included results such as 14m at 12.24g/t Au and 36g/t Ag; and 34m at 3.19g/t Au.

The Company’s exploration strategy now is firmly focused on discovering and defining near surface satellite mineralisation at these new prospects. Adding near-surface resources is likely to be important in the early stages of any potential future mining operation.

Kingston Resources Limited Managing Director, Andrew Corbett commented on recent exploration results: “Drilling at Umuna has demonstrated likely extensions to the Central Umuna ore zone which is very encouraging. This section of the resource has attractive grade and width at only moderate depth. In addition, intersecting potential ore zones in the hanging wall above the Umuna fault zone is beneficial as this material would likely be mined to access the main zone. We’ve now moved the rig down to our Ginamwamwa prospect, where a range of holes are being drilled to test underneath the high-grade supergene gold, we identified at surface through the successful 2018 geochemistry program. After completion of the Ginamwamwa program the rig will move to Quartz Mountain.”
Current drilling activity at Ginamwamwa
The Livingstone Gold Project
 
The Livingstone Gold Project is KSN’s second venture which covers 204km2 of the Western Bryah Basin near Meekatharra in WA. The Project hosts an existing JORC2004, inferred mineral resource of 49,900 ounces, a number of high-grade historic drilling intersections, strong soil anomalies and historic workings all of which indicate excellent potential for additional discoveries. Kingston has already discovered a new prospect at Livingston; Kingsley, which has mineralisation defined over 1km of strike. Drilling at Kingsley in 2018 delivered highlights including 4m at 76.25g/t from 88m, and 28m at 2.26g/t from surface. Kingston intends to follow this up with further drilling in the current half.

The potential for high grade results in the region is underpinned by the historic production at Livingstone’s Find. This was the largest historic gold producer in the Robinson Range sheet area, with 1,260oz produced at an impressive average grade of 21.85g/t.
Notably, KSN remains Patersons Securities preferred entry into the junior gold space, with a current 2.8Moz resource at Misima and exceptional exploration upside. Kingston is now rapidly advancing its exploration strategy across the project with results anticipated in the coming months.
Visible gold at Ginamwamwa

STUART HAYWARD

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Stuart Hayward appointed as Misima Exploration Manager

ASX Announcement 13 March 2019 


  • Highly-credentialed exploration geologist with more than 30 years’ experience 
  • Expert in epithermal Au-Ag systems


Kingston Resources Limited (Kingston or the Company) wishes to advise of the following management changes at its flagship Misima Gold Project in PNG.


Mr Stuart Hayward has accepted the role of Exploration Manager, commencing in early April. Stuart is a highly credentialed geologist with more than 30 years’ experience in mineral systems exploration and evaluation including epithermal Au-Ag and porphyry Cu-Au deposits. Stuart’s extensive CV includes more than 15 years with Newcrest Mining Ltd as a Mineral Resource Manager and Principal Geologist covering their Asia Pacific and PNG projects, including time spent working on Newcrest’s Lihir and Wafi Golpu projects.


Mr Michael Woodbury has resigned from the role of Exploration Manager to pursue other opportunities. The Company wishes to thank Michael for his efforts on Misima, particularly in establishing the drilling program alongside Project Manager Charles Yobone.


Kingston Resources Limited Managing Director, Andrew Corbett said: “We are excited to have someone of Stuart’s calibre joining the team at Misima. Stuart will be working alongside Charles Yobone and our recently expanded team of geologists. He will have a particular focus on the 2019 drilling program which seeks to advance the exciting targets identified during 2018 towards resource definition. In addition to Stuart’s appointment we have recently appointed two new local geologists to the team as we ramp up regional exploration activities on the island. During my recent site visit to Misima it was particularly pleasing to see the expanded geological team carrying out field work on both Quartz Mountain and Ara Creek while we are drilling in a third location at Ginamwamwa. I would also like to take this opportunity to thank Mike Woodbury for his efforts in helping to establish our current exploration program since late 2017.”


Figure 1: Misima Gold Project: simplified geology and exploration targets. 

Misima Mineral Resource 

The Misima mineral resource estimate shown in Table A1 below was released in an ASX announcement on 27 November 2017. The resource estimate was compiled by Mr Scott McManus, who is an independent consultant to the Company. Further information relating to the resource is included within the original announcement.


Table A1. Misima JORC2012 mineral resource estimate summary table. 


Click here to view the full announcement

CORPORATE PRESENTATION

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MISIMA GOLD

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Misima Gold Project

Misima is a transformational opportunity for Kingston Resources.


The Misima Gold Project is an advanced exploration asset with significant scale underpinned by an existing 2.8Moz resource. It also hosts a number of exciting exploration targets. Kingston is the first to explore for gold at Misima since Placer ceased its operation in 2004, having successfully produced 3.7Moz over a 15 year mine-life.


Misima Island is located 625km east of Port Moresby in the Solomon Sea. Gold was discovered on the island in 1888 with small scale underground mining continuing until WWII. Placer Dome Inc (Placer) commenced exploration in 1977, with production beginning in 1989. Misima was operated as an open pit gold mine from 1989 to 2004, producing 3.7Moz at an average cost of US$218/oz.


Prior to Kingston acquiring the project, exploration at Misima has targeted copper-gold porphyry systems at depth. KSN intends to return the focus to gold where a number of exciting exploration opportunities have been largely ignored.

KSN completed its earn-in in August 2018 to own 70% of Misima. The JV Partner, PPC, is owned by JX Nippon Metals and Mining (66%), and Mitsui Mining and Smelting (34%).


Misima hosts an existing JORC2012 resource of 82.3Mt at 1.1g/t for 2.8Moz. KSN considers the exploration upside at Misima to be material, with a number of key targets identified. These include:

  • Umuna Extensions: 2.8Moz Au resource open along strike and down dip – potential for shear-hosted and skarn mineralisation.
  • Misima North: >4km untested strike open to the north, supported by historic u/g mining, geochemistry, and KSN structural review. Under-explored. Ara Creek prospect recently discovered.
  • Umuna East Side: Mineralised structures on southeast side of Umuna. ~1.8km in strike. Evidence of high grade, shallow mineralisation
  • Quartz Mountain: Average hole depth to date 90m. Mineralisation open at depth.
  • Ginamwamwa: 2018 discovery by KSN, high-grade results in surface geochemistry identified over >500m of strike

Figure 1: Papua New Guinea major gold projects


Figure 2: Misima Island


Figure 3: Central Umuna Zone shows strong thickness and continuity to depth


Figure 4: Misima Gold Project – Simplified geology and exploration targets


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LIVINGSTONE GOLD

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Livingstone Gold Project

The Livingstone Gold Project is an advanced exploration project Located 140km northwest of Meekatharra.


The Livingstone Gold Project is an exploration project with an existing JORC2004 Inferred mineral resource of 49,900 ounces, a number of high-grade historic drilling intersections, strong soil anomalies and historic workings all of which indicate excellent potential for additional discoveries. Kingston has already discovered a new prospect at Livingston, Kingsley, which has mineralisation defined over 1km of strike


Livingstone covers 204km2 of the western Bryah Basin, including;

  • A JORC2004 Inferred gold resource of 49,900oz
  • Numerous high-grade historic intersections including:
    • 18m @ 7.85g/t Au from 68m
    • 5m @ 20.5g/t Au from 3m
    • 14m @ 3.49g/t Au from 2m
  • Brownfields exploration potential over a 42km strike length


At Livingstone, quartz-sericite schist and cherts of the Millidie Creek Formation within the Padbury Group host the historic Livingstone’s Find gold workings. Livingstone’s Find was the largest historic gold producer in the Robinson Range sheet area, with 1,260oz at an average of 21.85g/t. Further north in the stratigraphic sequence, mafic/ultramafic schists of the Narracoota Formation host the Homestead resource and the Winja, Hilltop and VHF gold prospects.


Figure 1: Livingstone project and regional mines


Figure 2: Kingsley prospect defined over 1km of strike


In 2018, Kingston discovered the Kingsley deposit, which now has mineralisation defined over 1km of strike, with potential for at least a further 1km based on existing soil anomalies and historic workings in the region. Intersections from the 2018 drilling include:

  • 4m @ 76.25 g/t Au from 88m (KLAC206)
  • 28m @ 2.26 g/t Au from surface,
    • including 8m @ 5.57 g/t from surface (KLAC198)
  • 16m @ 1.95 g/t Au from 56m,
    • including 4m @ 5.72 g/t from 56m (KLAC186)
  • 16m @ 1.59 g/t Au from 16m,
    • including 4m @ 3.42 g/t Au from 16m (KLAC189)
  • 4m @ 3.49 g/t Au from 4m & 24m @ 1.06g/t Au from 24m


Kingston’s 2017 drilling program was focused on following up historic high grade intersections at Homestead, which hosts the JORC2004 inferred resource, and the nearby Winja prospect. RC drilling at Homestead and Winja prospects resulted in more high-grade results:

  • 7m @ 12.59g/t from 35 m (KLRC005, Homestead)
  • 18m @ 3.03g/t from 45 m (KLRC014, Winja)


WWW.KINGSTONRESOURCES.COM.AU

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