Kingston (ASX:KSN) accelerates Mineral Hill mining to open pit production

Kingston (ASX:KSN) accelerates Mineral Hill mining to open pit production

April 2, 2024 Off By Jack Baker

Kingston Resources has completed an $8.1 million placement and is offering an accelerated non-renounceable entitlements offer to shareholders for another $5.4m to accelerate hard rock Mineral Hill mining in the Cobar Basin of New South Wales.

Mining is already underway at the Tailings subproject, with Pearse open pit operations now set to begin this quarter, a move Kingston expects to reap a 133 per cent year-on-year increase in payable metal up to about 7 kilotonnes of copper equivalent and lay the foundation for long-term operations.

Underground mining is then scheduled for 2026, but for now, Kingston anticipates high-margin, and very profitable operations leveraged to an ascendent gold price to make a heavy positive impact on its financials.

Kingston Managing Director and Chief Executive Andrew Corbett said the company was immensely grateful to shareholders and their validating confidence as it moved forward with plans to significantly increase production.

“There is currently a lot of activity in the Cobar region and Kingston is in an excellent strategic position with an operating processing plant and outstanding exploration upside potential,” he said.

“The Tailings Project has been a highly successful operation for the company and the entire team should be very proud of what has been delivered.”

Corbett noted the site team had shortly made improvements to maximise production after acquiring the project in 2022 and operating cash flow from Mineral Hill had hit $24m by the end of last year.

He said the team’s focus will now shift to extracting the remaining high-grade tailings inventory and making the final open pit preparations as it looks toward 3000 ounces of production through the March quarter.

“We remain focused on our company strategy to self-manage and self-perform all aspects of the operation at Mineral Hill,” Corbett said.

He said works will include transitioning its team from Tailings over to the Pearse open pits and ensure a maximised operating margin.

“By managing this work program in-house and using our highly capable site team we have managed to refurbish the processing plant on budget and at a leading low-capital intensity,” Corbett said.

Mineral Hill boasts an extensive system, and Kingston is confident in its upside after a recent mirroring discovery paved the way for more finds within the mine as it eyes off a low-capital entry to several production-ready open pit and underground deposits.

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