Successful in-fill and extensional drilling program lifts global Resource to 3.8Moz Au and delivers substantial increase in higher confidence Indicated ounces
-- Large, high-quality and robust Mineral Resource:
• 6% increase in global Mineral Resource from 3.6Moz to 3.8Moz Au
• 39% increase in Indicated ounces from 1.8Moz to 2.5Moz Au
• 43% increase in Indicated tonnes to 98Mt
• 17% increase in global tonnes to 169Mt
• New Resource includes near-surface material at Umuna East
-- Current Ore Reserve to be updated with Definitive Feasibility Study (DFS)
• 2.5Moz Indicated Resource now available for potential conversion to Reserve with DFS
• Indicated Resource to Ore Reserve conversion of 71% was achieved during PFS
• Existing 1.35Moz Reserve already underpins a 10-year mine life based on Reserve ounces only
-- DFS due in March 2022 to update the PFS project economics summarised below:
• 130,000ozpa average annual gold production over a 17-year mine life
• Life-of-mine (LOM) average AISC of A$1,159/oz
• LOM revenue of A$4.9 billion and free cash-flow of A$1.5 billion
• Pre-tax Net Present Value (NPV8%) of A$822m and 33% IRR at US$1,600/oz gold price
• Pre-tax Net Present Value (NPV8%) of A$1.28b and 48% IRR at US$1,900/oz gold price
• Payback period of 4.7 years at US$1,600/oz gold price, reduced to 2.75 years at US$1,900/oz
Kingston Resources Ltd (ASX: KSN) is pleased to report a significant upgrade to the JORC 2012 Mineral Resource Estimate for its flagship Misima Gold Project, PNG, incorporating the results of recent successful drilling programs and updated gold price assumptions.
The updated global Misima Mineral Resource has delivered a 39% increase in Indicated gold ounces and 6% increase in total gold ounces. The total Misima Resource now stands at 169Mt @ 0.71g/t Au and 4.1g/t Ag for 3.8Moz Au and 22.1Moz Ag, (see Table 1), including an Indicated Resource of 97.7Mt at 0.79g/t Au and 4.3g/t Ag for 2.5Moz Au and 13.4Moz Ag. The updated Resource provides an enhanced platform from which to advance mining studies, with the significant increase in Indicated ounces highlighting the potential to deliver a step-up in Ore Reserves following completion of the DFS in Q1 2022.
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