Kingston Resources entrusts Lycopodium with the design of a processing plant for the Misima gold project

Kingston’s definitive feasibility study for Misima is “well advanced” and mine planning will begin this quarter.

Kingston Resources (ASX: KSN) has contracted Lycopodium Minerals, a subsidiary of Lycopodium (ASX: LYL), to carry out the design work of the processing plant for a final feasibility study for the historic Misima gold project in Papua New Guinea. -Guinea.

Lycopodium has global experience in the design of gold mining processing plants and has established experience in delivering projects to the region.

The company has already carried out studies on greenfield and brownfield projects in Papua New Guinea for clients such as PanAust, Newcrest Mining (ASX: NCM), Harmony Gold, Ok Tedi, K92 Mining, St Barbara (ASX : SBM) and Barrick Gold Corporation.

Unique skills

Kingston General Manager Andrew Corbett said Lycopodium will bring unique skills to the design of the processing plant, which is a key part of the redevelopment of the Misima Project.

“Our primary focus will be to leverage Lycopodium’s global experience to streamline our project schedule, optimize project capital and maximize gold production,” he said.

“In addition to the expertise that Lycopodium will bring, this project continues to benefit from access to comprehensive historical production data that will simplify our work programs and reduce future uncertainties during the mining studies phase. “

Pre-feasibility conclusions

A pre-feasibility study completed in November found Misima to be a robust, large-scale, long-life, low-cost operation capable of delivering an average annual production of 130,000 ounces over a mine life. extremely attractive ”. in sustaining cost of less than $ 1,200 per ounce.

The study confirmed Misima’s credentials as one of the “best undeveloped projects in the Asia-Pacific region” and highlighted the opportunity for Kingston to unlock more value through a mineral resource update, a final feasibility study and project approval program.

The project hosts a current JORC resource of 3.6 million ounces of gold and an ore reserve of 1.35 Moz.

Definitive advancement of feasibility

Mr Corbett said the final Misima feasibility study was “well advanced” with metallurgical test work completed, geotechnical programs underway and additional engineering study packages awarded.

Mine planning is expected to begin following an update to Misima’s mineral resources, expected before the end of the year.

Kingston also continues to work on an environmental and social impact assessment of the project as well as work programs associated with the mining lease application.

All activities remain on track to be completed in early 2022.

Profitable mine

The Misima Project was operated as a profitable surface mine by Placer Pacific between 1989 and 2001, producing over 3.7 Moz before it closed when the price of gold fell below $ 400 / oz.

Kingston assumed full ownership of the large-scale redevelopment in March after acquiring the remaining 19% stake held by former partner Pan Pacific Copper.

“This is a strategically important step for Kingston on our path to becoming a significant new gold producer in the Asia-Pacific region,” said Mr. Corbett at the time.

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Abdul J. Gaspar

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