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.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified. 

We are a boutique environment – the home of uncompromisingly high-quality brands spanning news, opinion, and interaction, priding ourselves on promoting discussion and understanding that facilitates growth. We work closely with our clients to really understand what they are trying to achieve and use best practice available to do that!

Contact info

Suite 3, 47 Havelock Street
West Perth WA 6005
info@marketopen.com.au

Stewart Walters
Managing Director
stewart@marketopen.com.au
+61 414 644 166

Amanda Ellis
Chief Content Producer
amanda@marketopen.com.au
+61 438 003 868

Important links

Follow us