Kingston Resources - Quarterly Activities Report - 30 July 2024
KINGSTON RESOURCES LIMITED (KSN) Share Update July 2024 Monday 29th
Kingston Resources Reports Transformative Quarter with Major Milestones
Kingston Resources Limited (ASX: KSN) has released its quarterly activities report for the period ending 30 June 2024, highlighting significant advancements in mining operations and corporate activities.
Instant Summary:
- Successful completion of Tailings Retreatment Project, generating $26 million in operating cashflow.
- Commencement of open pit mining at Pearse North with first blast in June 2024.
- Processing plant refurbishment nearing completion with first gold pour expected in August 2024.
- Updated Mineral Resource Estimate for Pearse North shows 30% increase in gold and 67% increase in silver.
- Renewed interest in Misima Gold Project due to rising gold prices, with discussions on potential partnerships.
- Successful capital raising of $13.49 million through Placement and Entitlement Offer.
Operational Achievements
Kingston Resources has successfully completed the Tailings Retreatment Project at the Mineral Hill mine, producing 34,540 oz of gold and generating $26 million in operating cashflow. This project underscores Kingston's capability to maximize asset value.
Open pit mining commenced at Pearse North in June 2024, marking a significant transition to hard rock mining. The first blast was conducted in June, and substantial volumes of open pit oxide ore have been trucked to the ROM pad, with commissioning starting in July.
Processing Plant Refurbishment
The refurbishment of the processing plant is nearing completion, with the first gold pour from the new open pit ore expected in August 2024. The crushing and grinding circuits were commissioned in July, and the flotation circuit is set to be commissioned in August, enabling full processing capability for multiple metal concentrates and precious metal doré.
Resource Development
Exploration efforts have been fruitful, with surface drilling delineating high-grade mineralization over a 400m strike length at the Southern Ore Zone. The updated Mineral Resource Estimate for Pearse North has delivered a 30% increase in gold and a 67% increase in silver resources.
Misima Gold Project
The rising gold price has renewed interest in the Misima Gold Project, with ongoing discussions about potential partnerships and development pathways. The project's potential for a pre-tax NPV of $2.2 billion at a US$2,000/oz gold price highlights its immense value and strategic importance.
Corporate Activities
Kingston Resources successfully raised $13.49 million through a Placement and Entitlement Offer. These funds will be used for transitioning Pearse to open pit mining, underground resource drilling, and processing plant commissioning. The company's robust financial position ensures it is well-equipped to execute its strategic initiatives.
The successful completion of the Tailings Retreatment Project and the commencement of open pit mining at Pearse North are significant milestones that demonstrate Kingston's operational capabilities. The refurbishment of the processing plant and the increase in Mineral Resource Estimates are likely to positively impact the company's stock price. The renewed interest in the Misima Gold Project due to rising gold prices could further enhance investor confidence.
Investor Reaction:
Analysts are likely to react positively to the significant operational and corporate achievements reported by Kingston Resources. The successful capital raising and the strategic advancements in mining operations are expected to bolster investor confidence. However, the market will be closely watching the first gold pour from the new open pit ore in August 2024.
Conclusion:
Investors should keep an eye on Kingston Resources' upcoming milestones, including the first gold pour from the new open pit ore and the ongoing discussions regarding the Misima Gold Project. The company's strong financial position and strategic initiatives make it a compelling investment opportunity in the gold and base metals sector.