Kingston Resources begins exploration at historic Mineral Hill copper-gold mine
New gold producer Kingston Resources (ASX: KSN) has begun exploration at the historic Mineral Hill copper-gold project in New South Wales, targeting near-mine targets or brownfields within the existing mining lease .
The company hired Resolution Drilling, a local contractor based in Condobolin, to carry out the work.
The reverse circulation step-out drilling will begin at the Pearse North deposit and move to the southern ore zone for resource and reserve fill work at the Upper A vein.
Drilling will involve the historic Jacks Hut, GD140 and Missing Link prospects with the aim of defining geological models and identifying potential open pit resources.
Kingston is currently ramping up production from processing existing tailings, with full rates expected to be achieved this quarter.
The tailings processing operation is expected to unlock Mineral Hill’s broader potential, with minimal capital required to access multiple production-ready open pit and underground deposits.
Managing Director Andrew Corbett said drilling at Mineral Hill would be an important step for Kingston on the road to establishing production beyond the tailings project.
“The Pearse deposits are an attractive starting point when planning mine life extension activities…with a relatively low investment, we believe additional drilling has the potential to support the first year of mining. ore supply following the completion of our tailings reprocessing project,” he said.
“Furthermore, the significant potential evident in the Southern Mineralized Zone, Jacks Hut, Parkers Hill and the broader exploration program provides us with an exceptional base to extend the mine life at Mineral Hill.”
Acquire the project
Kingston acquired the Mineral Hill project from US-based Quintana MH Holdings Co last month, transforming it into a producer with a diversified asset base in the Asia-Pacific region that also includes the $3.8 million Misima gold project. ounces in Papua New Guinea.
Mineral Hill provided immediate gold production, cash flow and gold-copper exploration opportunities in a premier mining district.
The project is considered significantly under-explored and its potential has been highlighted with the recent discovery of the Pearse and Red Terror deposits.
The Pearse North deposit contains a resource of 300,000 tonnes at 2.7 grams of gold per tonne for 26,000 oz, including a reserve of 180,000 t at 2.5 g/t gold for 15,000 oz.
In the existing Pearse open pit, historical mining has not reached planned depths and there remains approximately 140,000 t of ore at 4.82 g/t gold for 22,000 oz in the mineral resource.
The southern mineralized zone represents a potential underground mine that will take advantage of the existing ramp development and infrastructure.
The area was previously mined underground using long-hole open pit stopings.
It currently has a mineral resource base of 1.78 Mt grading 1.79 g/t gold, 18 g/t silver, 1.2% copper, 1.2% lead and 1% zinc.