Golden Potential Unveiled: Kingston Resources Reports Outstanding Gold-Copper Results at Mineral Hill
Kingston Resources (ASX: KSN) has announced exceptional high-grade gold and copper intercepts from its underground drilling program at the Southern Ore Zone (SOZ) of the Mineral Hill Mine, highlighting the robust potential of this promising asset.
Multiple High-Grade Intercepts Strengthen Near-Term Mining Potential
The latest Kingston Resources Mineral Hill results from the ongoing campaign have delivered remarkable high-grade gold and copper assays, significantly enhancing confidence in the company's near-term underground mining plans. The standout results include:
- 4.0m @ 12.89g/t Au, 5.05g/t Ag and 0.73% Cu from 86m in hole KSNDDH034, including an exceptional 1.0m @ 48.8g/t Au, 12.6g/t Ag and 2.05% Cu from 89m
- 14m @ 19.35g/t Au, 3.07g/t Ag and 0.79% Cu from 113m in hole KSNDDH041
- 11.16m @ 2.29g/t Au, 4.49g/t Ag and 1.74% Cu from 67m in hole KSNDDH039
These results are particularly significant as they reinforce the high-grade nature of the gold-copper mineralisation at Mineral Hill, with a clear focus on the G and H Lodes on the western side of the SOZ, which are anticipated to be high-margin production areas.
The drill campaign commenced in February 2025, with 29 holes completed to date. Assay results have been received for 19 holes, with 8 still pending. The program was designed to infill planned stopes for the first 12 months of underground production, confirming both the location and tenor of the gold-copper mineralisation.
Understanding Copper Equivalents: A Key Metric for Polymetallic Deposits
For investors unfamiliar with polymetallic deposits like Mineral Hill, understanding "copper equivalent" (CuEq) measurements is essential for evaluating the economic potential.
Copper equivalent is a standardised way to express the combined value of multiple metals (in this case, copper, gold, silver, lead, and zinc) as a single copper percentage. This allows for easier comparison between different intercepts and deposits.
Kingston calculates two types of copper equivalents:
- In-situ CuEq – represents the raw metal values in the ground
- Recovered CuEq – accounts for metallurgical recovery and economic factors
For example, when Kingston reports 14m @ 19.35g/t Au with 0.79% Cu having a CuEq of 13.59%, it means this intercept has the same value as 13.59% copper alone would have, making it exceptionally high-grade.
Strategic Position for Future Growth
Kingston Resources is strategically positioned to capitalise on these outstanding Mineral Hill results, with Managing Director & CEO Andrew Corbett noting:
"These results further solidify our mine planning and highlight the upside potential at Mineral Hill. It is important to reiterate the strength of the gold mineralisation at Mineral Hill, particularly for the G and H Lodes on the western side of the SOZ, which are anticipated to be high margin production areas."
With underground development already in place, Kingston is well-positioned to convert these high-grade results into early cash flow. The company is currently dewatering historical mine workings below the 1080 level to enable access to deeper drilling positions aimed at resource extension.
Mineral Hill: A Multi-Metal Production Hub
Kingston's Mineral Hill operation is emerging as a significant gold and copper mine in the Cobar Basin of NSW. Similar to Carnaby Resources' Trekelano copper-gold expansion, the company recently announced the completion of the Misima Gold Project transaction, receiving the initial $50 million cash component of a $95 million total consideration, strengthening its financial position.
The current Mineral Hill resource stands at 7.75 million tonnes, containing:
- 354,000 ounces of gold
- 6.36 million ounces of silver
- 75,000 tonnes of copper
- 104,000 tonnes of lead
- 67,000 tonnes of zinc
The recently announced six-year life-of-mine plan includes a maiden underground Ore Reserve and a revised open pit Ore Reserve, though it utilises only 27% of the current resource, highlighting significant upside potential.
Why Investors Should Watch Kingston Resources
Kingston Resources represents a compelling investment opportunity for several key reasons:
- Production with growth potential: Already producing from its Mineral Hill operation with significant resource upside
- Strong balance sheet: Recent $50 million cash injection from the Misima transaction provides financial flexibility
- High-grade intercepts: Consistently delivering impressive gold and copper grades that can drive strong margins, similar to the recent high-grade gold strike at Music Well project
- Strategic focus: Clear pathway to establishing itself as a mid-tier gold and base metals producer
- Multiple catalysts: Ongoing drilling results, resource updates, and mining plan optimisations provide near-term potential share price catalysts
As Kingston intensifies exploration and development drilling across the Mineral Hill mining lease and two exploration leases, investors should expect a steady flow of news regarding potential extensions to mineral resources. Furthermore, the company's work bears similarities to Great Western Exploration's major copper-gold discovery in terms of its potential significance to shareholders.
With drilling ongoing and additional results pending, Kingston Resources is well-positioned to unlock further value at Mineral Hill throughout 2025. In addition, the company's drilling program methodology resembles successful approaches seen in Medallion Metals' GEM deposit gold extension and validated gold systems along the Lancefield trend, suggesting a well-considered technical approach to resource development.
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