Kingston Resources Ltd (ASX:KSN) is gearing up for a new phase of growth as it unveils an updated Life of Mine (LOM) plan for its Mineral Hill Project in central New South Wales as well as a A$6.5 million capital raising program to solidify the company’s position in the Cobar Basin.
The gold producer’s LOM plan for Mineral Hill forecasts production to the middle of 2027, with a total output of 123,000 ounces of gold equivalent payable.
As well, the company will transition from gold and silver ore production to add gold, copper, lead and zinc concentrates by the end of 2024.
“The Kingston team has been working hard to deliver the updated LOM plan, which includes metallurgical studies, geological modelling, engineering optimisation and design, as well as thorough cost estimation and minimisation,” Kingston managing director Andrew Corbett said.
“This comprehensive technical work will ensure a successful transition back to conventional mining and establish the foundation for long-term growth.”
New phase
Kingston's Mineral Hill story has been marked by the success of the Tailings Project, which was already being commissioned when the company acquired the mine as an operating asset in January last year.
With the release of the LOM plan, the company now enters the second phase of its long-term plan for Mineral Hill.
“Our team has finalised the initial mineral resource and ore reserve inventory, and we know there is huge extension potential within the mining lease alone,” Corbett said.
“Additionally, we have identified priority exploration targets across our two adjoining exploration leases and we have a pipeline of resource development targets that could feed our processing plant well beyond the LOM inventory.”
Next phase
Kingston plans to expand its mining inventory through organic growth or strategic acquisitions in the region under the third phase of their long-term plans.
This phase will focus on increasing the processing plant's capacity and sourcing additional high-grade gold and copper-dominant ore.
Kingston's acquisition of Mineral Hill in 2022 was motivated by the mine's abundant infrastructure and strategic advantages, Corbett said, adding that the presence of substantial plant and equipment within the processing plant allowed the company to rapidly increase cash flow from operations and maximise asset utilisation.
Additionally, with comprehensive permits and approvals in place, the company can seamlessly transition from the Tailings Project to hard rock mining.
Beefing up finances
Kingston has completed a bookbuild for a two-tranche A$5.5 million institutional placement and intends to offer existing shareholders the opportunity to participate in a A$1.0 million share purchase plan (SPP).
“We are hugely excited to be taking this next step in scaling our operations.
“With the launch of the placement and SPP, alongside existing cash and debt facilities, we will now have the funds to progress Kingston’s growth plans in earnest.
“The company is very pleased with the level of support from our existing shareholders and we are also pleased to welcome several new quality institutional investors to the Kingston register through their participation in the placement transaction.
“We remain committed to working closely with Lachlan Shire, the Wiradjuri People and our local community in Condobolin to identify opportunities for mutual growth and to increase prosperity and well-being across the region.”
To read the complete announcement, click here.