Kingston Resources Ltd (ASX:KSN) has notched up two successive months of record gold production from the Tailings Storage Facility (TSF) processing operation at Mineral Hill Mine in the Cobar Basin of western New South Wales.
The tailings operation delivered 1,138 ounces of gold in July and then 1,203 ounces in August as the company continues its ramp-up of production at Mineral Hill.
During August Kingston Resources also passed a significant milestone, producing its 100th gold bar from the TSF project.
Grade and recovery increase
Grade and recovery have increased as mining moves deeper into the TSF, while throughput rates continue to benefit from reduced rainfall relative to the June quarter months.
The average tonnage processed for July and August equates to an annual mining rate of 670,000 tonnes.
For the TSF project to date, both tonnes and grade processed are reconciling slightly positive to the JORC resource.
Monthly gold production from the TSF project at Mineral Hill.
Solid production growth
Kingston Resources managing director Andrew Corbett said: “Solid gold production growth continues to be delivered at the company’s gold tailings operation at Mineral Hill.
"Most notably, production from the TSF Project has delivered sequential monthly gold production records in July and August, and we are pleased to see grade and recoveries improve as expected as mining moves deeper in the tailings facility.
“I would like to thank the entire Mineral Hill team for their tremendous efforts, including achieving the significant milestone of delivering the 100th gold bar from our TSF Project in August.
"The team has delivered great results, and we look forward to providing a full Mineral Hill update in our September quarterly report.”
The average All in Sustaining Cost (AISC) for July and August was A$2,058/ounce.
Five-year plan
Alongside current production, KSN is developing a five-year mine plan at Mineral Hill with work underway to expedite mine production, including resource and reserve updates at the Pearse and SOZ deposits, mine design work and plant refurbishment studies.
Kingston’s exploration is focusing on near mine production opportunities from both open pit and underground targets located on the existing MLs.
The aim is to expand and update the existing resource base to underpin mine feasibility work and approvals to ensure an immediate transition to open pit and/or underground feed at the completion of the tailings reprocessing.