Gold rush! Kingston Resources crushes production targets at Mineral Hill

Kingston Resources Limited (ASX: KSN) has announced a major milestone in its operations, achieving full production capacity at its Mineral Hill processing plant. The plant, located in New South Wales, Australia, now operates at a throughput rate of 400,000 tonnes per annum (ktpa), surpassing the company’s initial projections. The plant’s refurbishment, completed at a relatively low cost of A$13.2 million, has delivered impressive results, driving Kingston’s production to exceed nameplate capacity.

Kingston Resources confirmed that the ramp-up of the crushing and grinding processes had been completed over the past four weeks, with the mill consistently operating at a rate of 50 tonnes per hour (tph), which is 20% higher than its original design capacity. The company stated that these improvements were achieved through optimising the inputs and operating conditions, with a record single-day throughput of 1,144 tonnes. This advancement comes at a critical time, reflecting Kingston’s operational agility and commitment to increasing production.

Increased Gold Recovery and Steady Cash Flow

One of the most notable outcomes of this ramp-up is the enhancement in gold recovery rates. The recovery rates from oxide ore have consistently exceeded Kingston’s budgeted forecast of 85%. This success is crucial for Kingston, not only in terms of operational efficiency but also in securing a steady cash flow. Kingston Resources has established weekly gold and silver dore sales, ensuring a reliable income stream. This week’s sale of 56kg of dore, comprising an estimated 20% gold and 78% silver, highlights the financial benefits of Kingston’s efficient operation.

Kingston Resources Managing Director, Andrew Corbett, commented that the achievement marks a pivotal moment for the company as it transitions into the growth stage at Mineral Hill. Corbett emphasised the team’s success in delivering the refurbishment at a low cost while significantly ramping up production. This accomplishment places Kingston on track to achieve its goal of establishing itself as a mid-tier gold and base metals producer with multiple assets.

Expert Analysis: What’s Next for Kingston Resources?

This development positions Kingston Resources strongly within the Australian mining sector, especially with its continued focus on gold and copper production. The steady increase in throughput and improved gold recovery rates suggest a promising trajectory for the company. Further incremental improvements in mine and plant operations could lead to even greater efficiency and profitability.

While the market value of Kingston Resources currently stands at A$57 million, the company’s strategic growth at the Mineral Hill project, along with its 3.8-million-ounce Misima Gold Project in Papua New Guinea, provides a platform for expansion into a multi-asset, mid-tier mining company. Investors will be closely watching Kingston’s next steps, particularly regarding potential acquisitions or further developments at its flagship projects.

The successful ramp-up at the Mineral Hill processing plant is a strong indicator of Kingston Resources’ ability to deliver results. With continued improvements, increased production, and an efficient cost base, the company is well-positioned to capitalise on the current gold and copper markets. As Kingston moves forward, its focus on operational excellence will be key to further growth and shareholder value.