Kingston Resources Ltd - Misima PFS confirms potential for long-life, low-cost gold mine with 1.35Moz Reserve
Kingston Resources Ltd (ASX:KSN)

Misima PFS confirms potential for long-life, low-cost gold mine with 1.35Moz Reserve


The PFS delivers forecast gold production of ~130kozpa at AISC A$1,159/oz with compelling project economics, long life, low capital intensity and outstanding growth potential.

A significant, long-life Asia-Pacific gold operation:

  • 130,000ozpa average annual gold production over a 17-year mine life.
  • 5.5Mtpa mining and processing operation on a brownfields site with extensive mining history.
  • Conventional CIL plant fed by the main Umuna Open Pit and Ewatinona Starter Pit.
  • Low capital intensity with A$283m CAPEX including A$37m contingency.

Compelling project economics:

  • Life-of-mine (LOM) average AISC of A$1,159/oz.
  • LOM revenue of A$4.9 billion.
  • LOM free cash-flow of A$1.5 billion.
  • Pre-tax Net Present Value (NPV8%) of A$822m and 33% IRR at US$1,600/oz gold price.
  • Pre-tax Net Present Value (NPV8%) of A$1.28b and 48% IRR at spot US$1,900/oz gold price.
  • Payback period of 4.7 years at US$1,600/oz gold price, reduced to 2.75 years at US$1,900/oz.

Large high-quality Mineral Resource and Ore Reserves:

  • 1.35Moz Ore Reserve for a 10-year mine life based on Reserve ounces only.
  • 12.5% increase in global Mineral Resource from 3.2Moz to 3.6Moz Au.
  • Robust economics based on Reserve ounces only – pre-tax NPV8% of A$481m, 30% IRR and 5.4-year payback.


Significant upside to be unlocked as development studies advance:

  • Significant project upside to be delivered through drilling campaigns currently underway to identify additional near-surface ounces for early years of ore production.
  • Work programs now being planned for next phase of studies. If you’ve been following Kingston Resources (ASX: KSN) over the last few months, you might have been awaiting the PFS results from Misima prior to investing. The wait is now over with today’s announcement reporting the completion of a positive Pre-Feasibility Study (PFS) for its flagship 100%-owned Misima Gold Project. The PFS confirms the potential to develop a technically robust, large-scale, long-life, low-cost operation delivering gold production of 130,000oz per annum at forecast life-of-mine (LOM) all-in sustaining costs (AISC) of A$1,159/oz over a forecast 17-year mine life. The PFS is based on the redevelopment of the former Misima gold mine, which was operated previously as a successful 5.5Mtpa Carbon-in-Leach (CIL) open pit operation by Placer Pacific, producing 230kozpa over a 15-year production history.

What’s next on the roadmap?

Kingston is planning a new 5.5Mtpa CIL treatment facility and modern infrastructure on the footprint of the historic mine, establishing a new standalone, long- life gold mining and processing operation underpinned by two major ore sources – a cut-back of the existing Umuna open pit and an expansion of the existing small pit at Ewatinona in the Quartz Mountain area.



Together with the PFS, Kingston reported a maiden JORC Probable Ore Reserve of 48.3Mt @ 0.9g/t for 1.35Moz, which underpins the large scale, long-life Misima Gold Project, together with a further 12.5% increase in the global Resource to 144Mt at 0.78g/t for 3.6Moz.

Full Announcement and Deck

There's substantially more information in the full announcement so make sure you check it out along with the latest presentation:


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(source: Annoucement)

Managing Director's Summary

Andrew Corbett

We are extremely excited to be able to report such strong results from the Pre-Feasibility Study, together with an impressive maiden 1.35Moz Ore Reserve and a further increase in our global Mineral Resource to 3.6Moz. This is a significant milestone for all stakeholders in the Misima Gold Project and represents a meaningful step towards our goal of becoming a substantial new mid-tier Asia-Pacific gold producer. The PFS confirms a robust, large-scale, long-life, low cost operation delivering annual average production of 130,000 ounces at an extremely attractive average all-in sustaining cost of below A$1,200/oz. The contained gold metal in the mine plan comprises 64 per cent Ore Reserves and Indicated Resources, with the balance of 36 per cent derived from Inferred Resources.

Andrew Corbett
Managing Director, Kingston Resources Ltd

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