Mineral Hill Mine

In January 2022 Kingston completed the acquisition of the Mineral Hill Mine near Condobolin, NSW.

The Mineral Hill Mine includes two processing circuits, current gold production, a number of developed polymetallic deposits and extensive exploration upside.

Initially production will be sourced from the tailings processing operation where first gold was poured in September 2021. This operation provides a solid foundation for Kingston to unlock the broader potential of the Mineral Hill asset, with minimal capital required to access several production-ready open pit and underground deposits. These near-term production opportunities include the Pearse and Pearse North deposits, the Southern Ore Zone and the Parkers Hill deposit. In addition, there are a large number of advanced exploration targets across the broader tenement package which the Company intends to pursue aggressively.

The Project hosts existing infrastructure, including an existing processing plant (Figure 2), access to grid power and public roads, which will help accelerate a restart to mining operations.

History

The Mineral Hill Mine is an historic operating mine site which was placed on care and maintenance in 2016. The site consists of a number of exploration and development opportunities including several historic small open pit and underground operations and a number of exploration targets.

Figure 1. Site location, including surrounding operating mines.

Figure 2. Site infrastructure includes a 350ktpa flotation and 400ktpa CIL circuit.

The area was first explored in 1894. Most recently Kimberley Metals Limited (KBL), commenced operations in 2008, undertaking high-grade gold mining at the Pearse open pit, as well as the Parkers Hill and the Southern Ore Zone underground operations. The Project was subsequently acquired by Quintana in 2016 and placed on care and maintenance until the decision to advance the tailings re-processing operation was made in 2020.

Exploration

Gold exploration and development, through the existing reserves at Pearse and Pearse North, the tailings re-processing project, and the extensive exploration portfolio, remain the core of the operations at the Project. In addition to gold, the Project offers exposure to other precious and base metals, including copper, zinc, lead and silver within several of the exploration and development targets.

In terms of modern exploration, Mineral Hill is considered highly under-explored and, while subject to extensive historical drilling, the recent discoveries of Pearse and Red Terror have highlighted the significant potential with just 2% of drill-holes testing beyond 350m below surface. The average drill-hole depth is just 90m.

Reserves and Resource

Mineral Resources for the Mineral Hill Mine have been compiled for five separate ore bodies within the Mine Lease area. Ore Reserves have been estimated for three deposits at TSF, Pearce and Pearce North (see ASX announcement 18 November 2021).

Mineral Hill Resources have been estimated as 5.9Mt @ 1.20g/t Au, 23.5g/t Ag, 0.7% Cu, 1.0% Pb, and 0.6% Zn for 229Koz Au, 4,461Koz Ag, 43Kt Cu, 60Kt Pb, and 35Kt Zn

Mineral Hill Mine Ore Reserves for TSF, Pearce and Pearce North have been estimated as 2.1Mt @ 1.40g/t Au, 5g/t Ag for 71Koz Au and 346Koz Ag

Existing Mineral Resources and Ore Reserves provide a solid foundation for Kingston to unlock the potential of the Mineral Hill asset, with minimal capital required to access several production-ready open pit and underground deposits.

The Southern Ore Zone (SOZ) and Tailings Storage Facility (TSF; Tails Reprocessing Project) have been prepared in accordance with JORC Code 2012 and are current. Parkers Hill and Pearse Mineral Resource Estimates that have been prepared by a Competent Person in accordance with the JORC Code 2004 and have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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