Mineral Hill Drilling Campaign Could Extend Mine Life Amid Exploration Uncertainties
Kingston Resources has launched a new drilling campaign at its Mineral Hill Mine, deploying two rigs to target high-grade extensions and near-mine discoveries. Early assays from Long Panel rock chips show promising copper grades, underpinning the company’s growth ambitions.
- Two drill rigs operational at Mineral Hill for underground and surface drilling
- Focus on Southern Ore Zone extensions and near-mine prospects Bogong and Long Panel
- High-grade copper assays up to 15.25% from Long Panel rock chip samples
- Induced polarisation survey enhances targeting at Long Panel and Yellow Mountain North
- Program aims to extend mine life and increase resource inventory
Kingston Resources Accelerates Exploration at Mineral Hill
Kingston Resources Limited (ASX – KSN) has initiated a significant new phase of exploration at its wholly owned Mineral Hill Mine in New South Wales. The company has mobilised two drill rigs, one underground diamond drill rig and one surface reverse circulation rig, to pursue resource growth and discovery. This marks a strategic investment aimed at expanding the mine’s resource base and extending its operational life.
The underground drilling program is concentrated on the Southern Ore Zone (SOZ), a historically productive area with substantial potential for high-grade extensions. The focus is to delineate the near-mine discovery made in late 2023, where surface drilling returned impressive intercepts including 12.5 meters grading 2.1% copper, alongside lead, zinc, gold, and silver. This mineralisation lies outside the current resource estimate, highlighting the opportunity for resource upgrades. Complementary geophysical surveys, including downhole electromagnetic methods, will assist in identifying additional lode structures beyond existing drill holes.
Surface Drilling Targets Near-Mine Prospects
On the surface, the reverse circulation rig is testing two key prospects – Bogong and Long Panel. Bogong lies just north of the Mineral Hill Mining Lease, close to the Pearse North pit, with 15 planned drill holes targeting coincident geochemical and induced polarisation anomalies. Following this, six holes totaling approximately 1,620 meters will test the Long Panel Prospect, where recent rock chip sampling from historical mullock dumps has revealed remarkably high copper grades, including a standout 15.25% copper assay. These results reinforce the prospectivity of the area and justify the ongoing exploration efforts.
Kingston has also conducted an induced polarisation (IP) survey over Long Panel and plans to extend this geophysical technique to Yellow Mountain North. IP surveys are particularly effective in detecting near-surface sulphide mineralisation, and when combined with gravity and magnetic data, they provide a robust framework for prioritising drill targets.
Strategic Implications and Future Outlook
Managing Director Andrew Corbett emphasised the importance of this drilling campaign as a cornerstone of Kingston’s growth strategy. The company aims not only to increase the scale of Mineral Hill’s operations but also to extend the mine’s life and enhance long-term shareholder value. With measured and indicated resources comprising 60% of the nearly 10 million tonnes resource base, there is considerable scope for converting resources into reserves and expanding production.
Alongside exploration, Kingston continues open pit gold and silver production, maintaining steady cash flow while advancing underground development activities scheduled for the December quarter. The integrated approach of resource definition and regional exploration positions Kingston well to unlock further value from Mineral Hill and potentially develop additional deposits within its extensive tenement package.
While the current drilling results are promising, the company has yet to release updated resource estimates or production guidance. Investors will be watching closely for assay results and subsequent resource updates that could materially impact Mineral Hill’s valuation and operational plans.
Bottom Line?
Kingston’s dual-rig drilling campaign at Mineral Hill sets the stage for potential resource upgrades and mine life extension, with early signs pointing to promising discoveries.
Questions in the middle?
- Will the new drilling results lead to a significant upgrade in Mineral Hill’s resource and reserve estimates?
- How soon can Kingston translate exploration success into increased production or mine life extension?
- What are the implications of the high-grade copper assays at Long Panel for regional exploration potential?