Gold: Kingston wants to return this +2.8moz company-maker to its former glory
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Gold explorer Kingston Resources (ASX:KSN) will move to full ownership of the 2.8moz and growing Misima gold project in PNG.
Minority JV partner, copper-focused Japanese firm PPC, concluded that the mothballed operation “is outside our company focus”.
Which is great news for Kingston, which acquired a majority interest in Misima through a successful merger/takeover of TSX-listed WCB Resources in 2017.
The Kingston share price – which is down about 35 per cent over the past year – received a 3 per cent bump to 1.7c on the news.
Misima is a big project with a big production history. For 15 years, Placer Pacific operated a massive low-cost open pit operation which produced about 3.7moz of gold and 22moz of silver between 1986 and 2001.
Peak production was 370,000oz in 1992.
And when Placer mothballed the mine, gold prices languished below $US300/oz ($438/oz). Today, gold sells for about $US1450/oz.
Kingston aims to return Misima to its former glory. The explorer is now focused on increasing its resource inventory to +3moz and launching mining studies in 2020.
Just check out this neighbourhood:
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West African explorer Tietto Minerals (ASX:TIE) increased its Abujar gold project resource from 1.7moz to 2.2moz — and there’s more to come, says managing director Caigen Wang.
“We will be very busy in 2020 as our fleet of four company drill rigs are on track to deliver 50,000m or more of drilling by Q3 2020, doubling all drilling at Abujar to date, as we target continuing rapid growth in our gold resource inventory.”
The stock – which is up about 340 per cent over the past year – fell 6.5 per cent in morning trade.
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