Kingston Resources starts drilling at Mineral Hill as it looks to expand life of mine and resource
Proactive Investors
Published Nov 16, 2023 10:41
Updated Nov 16, 2023 11:30
Kingston Resources starts drilling at Mineral Hill as it looks to expand life of mine and resource
Kingston Resources Ltd (ASX:KSN) has started drilling at the Southern Ore Zone (SOZ) of its Mineral Hill gold and copper mine in NSW to infill the upper A-lode and follow up on the recent near-mine discovery.
Kingston is producing gold from Mineral Hill and announced a near-mine discovery from drill hole KSNDDH017 on October 24.
The company discovered two significant new mineralised structures situated east of the existing SOZ mineral resource, potentially expanding the company's life of mine inventory at Mineral Hill.
KSNDDH017 intersected new zones of mineralisation, including 12.5 metres at 3.41% copper equivalent from 405 metres.
The table below shows key highlights from hole KSNDDH017. The 12.5-metre-long intersection is less than 200 metres straight-line distance from existing underground development.
KSN highlighted standout results from drill hole KSNDDH017, which include a 22-metre interval containing 0.53 g/t gold, 20 g/t silver and 0.47% copper, among other elements, which the company says are truly “transformative”.
Drilling down to the details
Recent assays and logging from drill hole KSNDDH017 at the Southern Ore Zone (SOZ) have uncovered two new structures adjacent to the easternmost lode, known as the A-lode. This discovery includes multiple intercepts with over 1% copper equivalent (CuEq) within a material volume that runs parallel to the existing mineral resources.
Kingston is actively drilling a follow-up hole to explore extensions to this mineralisation and to conduct infill drilling in the upper A-lode zone. The upper A-lode and its extensions are currently classified under the inferred and indicated categories as per the JORC 2012 guidelines. T
he aim of this infill drilling program is to enhance the understanding and confidence in the geological continuity and subsequently, the classification of the mineral resource.
The Southern Ore Zone boasts a significant resource, comprising 3.8 million tonnes at 1.29 g/t gold, 19.2 g/t silver, 0.9% copper, 1.6% lead and 1.4% zinc. The findings from KSNDDH017 suggest a promising potential for expanding these mineral resources and, in turn, extending the mine's operational lifespan.
A cross-section showing the significant intersections from KSNDDH017 and the interpreted lodes.
About Mineral Hill
Mineral Hill, a mine specialising in gold and copper extraction, is in the Cobar Basin of New South Wales.
In June 2023, the company revised its life of mine plan to include both open-pit and underground mining operations through to 2027.
Presently, the processing plant is operating with a Carbon-in-Leach (CIL) system. Efforts are also being made to bring the existing crushing, grinding and flotation circuits back online, which will enable the production of copper, lead, and zinc concentrates.
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Beyond its current operations, the company is keenly focusing on achieving production targets in the near mine areas located within the existing mining leases (MLs).
The strategic goal is to prolong the lifespan of the Mineral Hill mine through organic growth initiatives. Additionally, the company is evaluating regional deposits with the potential to be processed using the Mineral Hill processing plant, further expanding the mine's capacity and operational longevity.
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