Kingston Resources Ltd (ASX:KSN) has reported high grade polymetallic assay results from surface diamond drilling into the underground mineral resource at the Southern Ore Zone (SOZ) of its Mineral Hill mine in NSW.
The geotechnical analysis is yet to be finalised, but numerous significant intersections were returned. The wide, highgrade portions of SOZ are highly significant as they indicate a strong potential for favourable margins for the business once underground production begins.
Kingston Resources managing director Andrew Corbett said: “These results are very encouraging, not only due to the strength of the copper equivalent grades, but also because they validate the existing geological model.
“Our underground production target, released at the end of June 2023, was based on the SOZ Mineral Resource, so these intersections provide added confidence to our life of mine forecasts.
“We are focusing on the right technical areas to minimise risk and maximise opportunities that will come our way when we are in production. The geotechnical data from these holes will allow us to optimise our underground stope parameters so we can ramp up productivity and get the best value out of the asset.”
Drilling intersected high-grade mineralisation including:
- 5 metres at 0.08 grams per tonne (g/t) gold, 54 g/t silver, 0.78% copper, 5.68% lead, and 3.14% zinc, for 2.59% copper equivalent from a depth of 194 metre;
- 1 metre at 0.01 g/t gold, 25 g/t silver, 0.71% copper, 6.38% lead, and 3.85% zinc, for 2.63% copper equivalent from 220 metres;
- 5 metres at 10.39 g/t gold, 19 g/t silver, 0.03% copper, 0.35% lead, and 0,79% zinc, for 5.37% copper equivalent from 172 metres; and
- 5.5 metres at 2.5 g/t gold, 49 g/t silver,1.11% copper, 3.01% lead, and 4.60% zinc, for 3.83% copper equivalent from 154 metres.
The primary purpose of the drilling was to collect additional geotechnical data in order to assess the quality of the rock mass around the top shear contact.
The mineralisation was observed in the precise location of the existing mineral resource, increasing the company’s confidence in the geological model in this area.
A diamond hole was also drilled at the southern extent of the mineral resources to test for extensions, yet assays for the geotechnical sample test intervals and that drill hole are still pending.
The company’s chief geologist Stuart Hayward said: “We’ve gleaned a lot of useful information from these holes. The material beneath the top-shear comprises an area of wide, high-grade mineralisation. We are expecting that it will be a major component of our mine schedules in terms of tonnage mined and metal feed into the processing plant.
“It’s highly encouraging that the significant intersections mirror the existing nearby drilling and that our geological interpretation remains accurate with the addition of this data.”
Next steps
Kingston has recently focused on testing the geological interpretations, increasing the knowledge base on ground conditions, and developing geotechnical parameters to enhance the confidence on underground mine designs. It is incorporating the new data along with information from historical mining operations into a concise Southern Ore Zone geology model.
The company says that re-entry to the existing underground development is well under way, with rehabilitation to allow safe re-entry for drilling and pre-production activities.
It expects to conduct drilling in the second and third quarters of FY24 from both the underground development and the surface via diamond drilling to infill the ‘inferred’ areas of the deposit. Significant attention will also be given to testing the interpreted mineralised structures that currently remain open along strike and at depth.
Updates to the mineral resource and ore reserve estimates are planned for the fourth quarter of the 2024 financial year, taking into account the acquisition of additional drilling, geotechnical and metallurgical data.