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Kingston Resources Ltd (ASX:KSN) has begun commissioning of its crushing and grinding circuits as part of a wider refurbishment of its Mineral Hill processing plant close to its mine of the same name in New South Wales.
Hard rock ore is now being processed through the plant, and full commissioning is set to facilitate a ramp up in gold and silver production from the mine’s open pits, following an earlier stage of tailings being mined and processed in May.
Kingston’s use of existing company expertise for this refurbishment – which also involved the whole tailings mining team being trained and transitioned to open pit mining – has boosted efficiency of resources and low capital intensity.
The Pearse North pit has played an important role in the transition process, with open pit drilling and blasting beginning with a first blast on June 11, with more than 25,000 tonnes hauled and stockpiled to be put through the processing circuit, for production of gold and silver doré.
Average grades for this deposit are 3.2 grams per tonne (g/t) gold and 33.9g/t silver, with an update in May boosting contained gold by 30% and silver 67%, and Kingston has underlined the importance of the Pearse pits in Mineral Hill’s development into a long life, hard rock gold and copper miner.
Managing Director and CEO Andrew Corbett said the transition to open pit mining was an exciting development for the company.
“This move promises a significant boost in gold grade compared to our previous tailings retreatment operations, along with the added benefit of increased silver production,” he said.
“Our commitment to in-house expertise has been instrumental in delivering exceptional value throughout this process.
“By completing all major capital projects and mine operations internally, we’ve cultivated a deep well of knowledge that will not only drive future success but also foster strong community partnerships.”
The market has responded well to Kingston’s news, and at 11:54 AEDT, its shares were trading at 7.8 cents, a rise of 4% since the market opened.
