Kingston Resources Initiates Open Pit Ore Commissioning at Mineral Hill
KINGSTON RESOURCES LIMITED (KSN) Share Update July 2024 Tuesday 30th
Kingston Resources Commences Open Pit Ore Commissioning at Mineral Hill
Kingston Resources Limited (ASX: KSN) has successfully commenced the processing of hard rock ore at the Mineral Hill processing plant, marking a significant milestone in their operations.
Instant Summary:
- Successful commissioning of the crushing and grinding circuits at Mineral Hill.
- Rapid transition from tailings retreatment to open pit mining within eight weeks.
- Stockpiling of over 25,000 tonnes of oxide open pit ore on the ROM pad.
- In-house expertise used for the processing plant refurbishment.
- Expected increase in gold and silver production from open pit mining.
Commissioning Details
Kingston Resources Limited has successfully commissioned the crushing and grinding circuits at the Mineral Hill processing plant. This marks a significant milestone as the company transitions from tailings retreatment to open pit mining at Pearse North.
Over an eight-week period, the site team managed to complete the mining and processing of tailings, followed by the safe demobilization of the tailings retreatment equipment. The entire tailings mining team has been trained and transitioned to open pit mining, with additional experienced and trainee miners hired to form a crew of approximately 40 employees.
Operational Efficiency
The processing plant refurbishment was executed using in-house expertise, optimizing resource utilization and minimizing capital intensity. This approach has allowed Kingston to stockpile over 25,000 tonnes of oxide open pit ore on the ROM pad, ready for processing. The material will be fed directly into the CIL circuit to produce gold and silver doré for sale.
Resource Estimates
The Mineral Resource Estimate for Pearse North was updated in May 2024, showing a 30% increase in contained gold and a 67% increase in silver. The average resource grades are 3.2g/t for gold and 33.9g/t for silver. This positions Mineral Hill for a longer-life as a hard rock gold and copper miner and producer.
Community and Economic Impact
Kingston's focus on owner mining and local recruitment aims to build a skilled workforce at Mineral Hill, enhancing economic development within the local Condobolin community and Lachlan Shire. This strategic approach is expected to foster strong community partnerships and drive long-term sustainable growth.
The successful commissioning of the processing plant and transition to open pit mining is expected to significantly boost Kingston Resources' gold and silver production. This could have a positive impact on the company's stock price as investors respond to the increased production capacity and resource estimates.
Investor Reaction:
Analysts are likely to react positively to the news, given the successful transition to open pit mining and the efficient use of in-house expertise. The increased resource estimates for Pearse North also add to the company's growth potential, which could attract more investor interest.
Conclusion:
Investors should keep an eye on Kingston Resources as the company ramps up its gold and silver production at Mineral Hill. The successful commissioning and transition to open pit mining, along with the increased resource estimates, position Kingston for significant growth. Stay informed on further developments and consider the potential long-term benefits for your investment portfolio.