Kingston Resources Limited (ASX: KSN) ('Kingston', or 'The Company') is pleased to announce an updated JORC 2012 Ore Reserve Estimate for the Pearse North and Pearse South opens pits of 260kt @ 3.7 g/t Au and 57 g/t Ag for 31,000 oz of gold and 470,000 oz of silver.
This is supported by a revised Mineral Resource Estimate (MRE) for both deposits on the back of 2022 resource drilling. This release marks a significant milestone for Kingston, as the pits comprise the initial stage of Mineral Hill's return to hard rock mining. LOM production tonnes are comprised nearly entirely of Ore Reserves out to the end of CY24 (TSF Project plus open pit mining).
The underground component of the LOM plan is expected to contain a significant proportion of Measured and Indicated Resources from the Southern Ore Zone (SOZ) MRE. Work is also underway on finalising a revised MRE for Jack's Hut, which will provide added optionality for Mineral Hill. The full LOM schedule, due to be released this month, will be supported by extensive technical studies in terms of geotechnical engineering, metallurgy and mining evaluations.
Kingston Resources Managing Director, Andrew Corbett, comments: 'We are very proud to report the updated Ore Reserve for Pearse. The high-grade mineralisation within the Pearse open pits acts as a springboard to successfully get Mineral Hill back into conventional mining. The modelled revenue makes a significant positive impact on Kingston's cash flow projections. We see this as just the first step in our transition back to hard rock mining at Mineral Hill and in delivering value from this outstanding tenement package.
Mineral Resource Estimate
The Pearse North and South deposits at Mineral Hill are interpreted to be epithermal shear-hosted gold-silver (Au-Ag) lodes within the Late Silurian to Early Devonian Mineral Hill Volcanics. The sulphide mineralisation, comprising predominantly pyrite, arsenopyrite and stibnite, is typically disseminated within quartz-mica (sericite) schist. The mineralisation geometry was interpreted by creating 3D geological domain models using a 0.3g/t Au lower cut off for Pearse South and 0.2g/t Au for Pearse North. These cut-offs are based on the natural breaks observed in mineralisation populations. Grade estimation was subsequently undertaken using ordinary kriging estimate methodology into a 3-D block model. The classification of the MRE into confidence categories has been completed based on distance to samples and the average slope of regression. Indicated portions have a distance to the nearest sample of less than 25m and a slope of regression > 0.7, while Inferred portions have an average distance to samples > 30m and slope of regression < 0.6. The adopted reporting cut-off grade of 1.0g/t Au is based on the results of Whittle optimisation shells using cost and recovery data sourced from the operation at Mineral Hill.
The mineralisation model for each deposit has been revised using all available historical data and drill hole data acquired by Kingston in 2022. Drilling methods in the dataset comprise reverse circulation and diamond drilling methods. Reverse Circulation (RC) drilling samples were collected at 1m intervals directly from the rig cyclone (with a cone splitter attached). The diamond core was cut and sampled, with sample lengths ranging from 0.3m to 1.0m. Samples were analysed at SGS laboratory using Multi element 4-acid digest and gold by Fire Assay technique with an Atomic Absorption Spectrometry (AAS) instrument finish. KSN utilised QAQC in the form of standards, blanks and duplicates to ensure all data was of suitable quality for inclusion in the estimate. No specific metallurgical assumptions were made in the preparation of this MRE.
This updated Ore Reserve marks a significant milestone for Kingston, as the open pits are expected to generate significant cash flow for the company. The average Reserve grade of 3.7g/t gold is significantly higher than the current tailings resource grade of 1.1g/t Au, meaning a significant step up in metal output and revenue when open pit mining commences. There is also potential to discover additional high grade, nearsurface gold/silver mineralisation within the mining and exploration leases to complement the existing plant feed. Mineral Hill's operating process plant as well as the existing permitting and approvals are a major asset for Kingston; incremental mineralisation discovered or acquired has an accelerated path to value realisation.
About Kingston Resources
Kingston Resources is a gold producer, focused on building a mid-tier gold and base metals company, with current production from the Mineral Hill gold and copper mine in NSW, and advancing its development asset, the 3.8Moz Misima Gold Project in PNG. Mineral Hill is a gold and copper mine located in the Cobar Basin of NSW. Alongside current production, exploration is focusing on near mine production opportunities from both open pit and underground targets located on the existing MLs. The aim will be to expand and update the existing Resource base to underpin mine feasibility work and approvals to ensure an immediate transition to open pit and/or underground feed at the completion of the tailings reprocessing. Misima hosts a JORC Resource of 3.8Moz Au and an Ore Reserve of 1.73Moz. Misima was operated as a profitable open pit mine by Placer Pacific between 1989 and 2001, producing over 3.7Moz before it was closed when the gold price was below US$300/oz. The Misima Project also offers outstanding potential for additional resource growth through exploration success targeting extensions and additions to the current Resource base. Kingston's interest in Misima is held through its PNG subsidiary Gallipoli Exploration (PNG) Limited.
Contact:
Tel: +61 2 8021 7492
Email: info@kingstonresources.com.au
KINGSTON RESOURCES LIMITED 
