Kingston Resources has announced a substantial 29% increase in its Mineral Hill Project resources, including a maiden resource for the high-grade Red Terror deposit, enhancing confidence in future mine planning and production.
- 29% increase in total Mineral Resources to 10 million tonnes
- 40% rise in Measured resources at Southern Ore Zone
- 63% growth in Indicated resources at Parker’s Hill
- Maiden resource declared for Red Terror deposit
- Mining studies underway to convert resources to Ore Reserves and expand mine life
Significant Resource Growth at Mineral Hill
Kingston Resources Limited (ASX, KSN) has reported a major update to its Mineral Resource Estimate (MRE) for the Mineral Hill Project in New South Wales, marking a 29% increase in total resources from 7.8 million tonnes to 10 million tonnes. This uplift is driven by upgrades to key zones including the Southern Ore Zone (SOZ) and Parker’s Hill, alongside the declaration of a maiden resource for the high-grade Red Terror deposit.
Enhanced Confidence in Mine Planning
Measured and Indicated resources now comprise 60% of the total resource base, amounting to 6 million tonnes, which significantly strengthens the confidence in mine planning and operational execution. The SOZ saw a 40% increase in Measured resources, now totaling 327,000 tonnes at 1.9 grams per tonne gold and 1.2% copper. Parker’s Hill’s Indicated resources surged by 63% to 2.9 million tonnes, positioning it as a critical contributor to the mine’s future production profile.
Maiden Resource at Red Terror Underlines Growth Potential
The maiden resource declaration for Red Terror, a high-grade copper and gold deposit, adds 214,000 tonnes at 1.5% copper and 1.07 grams per tonne gold to the Mineral Hill inventory. This deposit, located adjacent to Parker’s Hill, is expected to be mined underground and offers promising opportunities for further expansion through infill and step-out drilling.
Strategic Initiatives to Extend Mine Life and Boost Cash Flow
Kingston is advancing mining studies aimed at converting these enhanced resources into Ore Reserves, which would underpin a longer mine life and increased production rates. Concurrently, work is underway to incrementally increase processing plant throughput and evaluate potential expansions. These initiatives are designed to maximize cash flow and support Kingston’s ambition to become a mid-tier Australian gold and copper producer with multiple assets.
Robust Reporting and Operational Context
The updated MREs comply with the 2012 JORC Code and incorporate revised commodity price assumptions and metallurgical recoveries, reflecting a realistic economic extraction scenario. The Mineral Hill Project benefits from established infrastructure, including an operating processing plant capable of producing multiple concentrates and precious metal dore on site. The project is situated on approved mining leases with no native title impediments and includes a 2% Net Smelter Return royalty to Quintana.
Bottom Line?
With a strengthened resource base and active studies underway, Kingston Resources is poised to accelerate Mineral Hill’s transition to a sustainable, long-life operation.
Questions in the middle?
- How soon can Kingston convert the increased Mineral Resources into Ore Reserves?
- What are the timelines and expected outcomes of the ongoing mining studies?
- How will the maiden Red Terror resource impact the overall mine plan and production profile?