Kingston Resources has brought forward copper concentrate production at Mineral Hill by a quarter, successfully trialing underground ore processing and advancing its multi-commodity strategy.
- First underground copper concentrate produced ahead of schedule
- High-quality concentrate with 88% copper recovery
- Underground mining restart de-risked through trial processing
- Mineral Hill evolving into gold, silver, and copper producer
- Enhanced exposure to favourable copper market fundamentals
Early Copper Concentrate Production Beats Schedule
Kingston Resources (ASX:KSN) has accelerated copper production at its Mineral Hill operation in New South Wales, delivering first underground copper concentrate a full quarter ahead of plan. This milestone follows the successful processing of 6,000 tonnes of low-grade copper and gold ore from underground development, marking a critical step in diversifying Mineral Hill’s output beyond gold and silver.
The trial run not only produced a saleable concentrate with over 20% copper grade but also achieved robust recoveries of 88% for copper and 74% for gold, underscoring the processing plant’s capability to handle base metal concentrates efficiently. Managing Director Andrew Corbett highlighted the trial’s role in optimising the plant’s flow sheet and reagent scheme, which are vital for scaling up underground ore processing.
De-Risking Underground Restart Through Operational Trial
Restarting underground operations at Mineral Hill, which had been dormant since 2015, is a complex endeavour. The recent trial has materially reduced execution risk by allowing the team to identify and resolve potential operational challenges ahead of full-scale production. This cautious approach positions Kingston well as it transitions from open pit mining to ramping up underground long hole stoping expected later this quarter.
The plant will revert to processing open pit ore through August or September, giving the underground team time to continue development and build momentum. This phased approach reflects a strategic balance between maintaining steady gold and silver output while integrating copper production, enhancing overall revenue diversification.
Mineral Hill’s Multi-Commodity Future
Mineral Hill is evolving into a multi-commodity producer, with copper joining gold and silver in the company’s portfolio. This diversification is timely given the strong long-term demand outlook for copper, driven by global electrification and decarbonisation trends. By increasing its exposure to copper, Kingston aims to capture upside from favourable market fundamentals while leveraging its existing infrastructure and resource base.
The company’s underground development is supported by recent high-grade polymetallic assays from the Southern Ore Zone, which validate its geological model and underpin near-term mining plans. These results have been pivotal in accelerating underground stoping activities and resource conversion efforts, as detailed in the company’s recent high-grade SOZ assays and polymetallic growth reports.
Operational Readiness and Market Positioning
Kingston’s trial has also served as a training platform for plant operators to familiarise themselves with base metal concentrate processing, a critical competency as Mineral Hill shifts towards multi-commodity production. The company is now better positioned to engage in offtake discussions with concentrate buyers, having produced representative samples during the trial.
With a mine plan extending to 2031 and significant measured and indicated resources, Mineral Hill’s infrastructure supports ongoing exploration and production flexibility. Kingston’s ability to produce multiple concentrates and precious metal doré on site adds further operational resilience and market adaptability.
Bottom Line?
Kingston’s ahead-of-schedule copper concentrate production at Mineral Hill reduces underground restart risks and broadens commodity exposure, setting a foundation for multi-commodity growth.
Questions in the middle?
- How quickly can Kingston scale underground long hole stoping to full production?
- What are the expected volumes and grades for copper concentrate sales in upcoming quarters?
- How will evolving copper market conditions influence Kingston’s strategic focus and offtake negotiations?