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Gold production the goal of Kingston’s Mineral Hill acquisition

Special Report: Kingston is skipping past all the steps in between and leaping straight into the ranks of gold producers … Read More
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Kingston is skipping past all the steps in between and leaping straight into the ranks of gold producers with the move to acquire the producing Mineral Hill mine in NSW.

Less than a month from completing the sale of its Livingstone gold project, the company has reached a binding agreement to acquire the mine from US-based Quintana MH Holding Co for up to $22.7m in cash and shares.

Mineral Hill has extensive gold and copper resources and had previously produced 396,000oz of gold and 33,000t of copper before it was shut in mid-2016.

Current operations entail the reprocessing of gold tailings on site through a recently upgraded carbon-in-leach circuit with a capacity of 400,000 tonnes per annum with output currently ramping up following first gold pour in September.

This delivers immediate gold production for Kingston Resources (ASX:KSN) with the current tailings reprocessing operation forecast to deliver about 40,000oz of the precious metal over 29 months at an all-in sustaining cost of between $1,550 to $1,650 per oz.

It is expected to be cash-flow positive in early 2022.

The project also hosts a current reserve of 71,163oz of gold and broader resources of 469,217oz of gold that underpins the company’s plan to establish initial mined production once tailings reprocessing is completed.

There is also potential for further growth through exploration with multiple targets located within the Mining Licence that host high-grade historical drill results that require follow-up.

Kingston will fund the acquisition through an institutional placement raising $14m and a $4m share purchase plan.

“The acquisition of Mineral Hill is a unique opportunity for Kingston shareholders,” managing director Andrew Corbett said.

“We are very excited to be able to acquire a fully-developed gold and copper project in a Tier-1 location that has recently restarted operations with immediate gold production.

“The attractive deal metrics, near-term cash-flow and significant gold and copper exposure make for a fantastic strategic fit with our cornerstone asset, the 3.8Moz Misima Gold Project in PNG.

“Misima is a large-scale, long-life and low-cost development project which, combined with the near-term production profile and extensive exploration opportunities at Mineral Hill, provides Kingston with an ideal platform for growth.”

kingston resource
Site infrastructure at Mineral Hill includes a 350,000tpa flotation and 400,000tpa CIL circuit. Pic: Supplied

Mineral Hill gold mine

Mineral Hill is located 65km north of Condobolin and was originally mined by Triako Resources from 1989 to 2004, which treated 2.1 million tonnes of ore at an average grade of 6.4 grams per tonne (g/t) gold and 1.1% copper for 360,000oz of gold and 20,000t of copper.

It was subsequently acquired by KBL in 2009, which produced 12,498t of copper, 3,566t of lead, 1,472t of zinc, 34,507oz of gold and 615,160oz of silver between September 2011 and mid-2016.

Mining was halted due to a high debt burden and the mining operation being impacted by a pit wall failure and weather event at the Pearse open pit mine that led to KBL being placed into administration.

Quintana subsequently acquired the project in 2018 and has since brought the project back into production with the CIL plant now fully refurbished and in commissioning to re-process onsite tailings that feature high gold content.

Production ramp-up is expected to take four months with nameplate production expected in early 2022.

Kingston plans to carry out exploration drilling within two months of completing the acquisition.

This drilling will focus on the Pearse open pit targets and the Southern Ore Zone underground targets to define an updated resource base that will underpin mine feasibility work and approvals to ensure an immediate transition to open pit and/or underground feed at the completion of the tailings reprocessing.

Exploration potential

While Mineral Hill has been explored from surface and underground since the early 1960s, it remains highly under-explored.

The recent discoveries of Pearse and Red Terror have highlighted that significant shallow potential still exists within the Mining Licence with the average drill hole depth being just 90m.

Previous drilling at the Southern Ore Zone had returned results such as 37.7m grading 2.2g/t gold, 0.9% copper, 69.8g/t silver, 1.7% lead and 0.4% zinc from 12m.

Recommencing underground mining from this area is expected to contribute medium-term ore feed.

Other high-priority exploration targets include the Pearse Corridor, where previous drilling has returned hits such as 18m at 3.15g/t gold and 265.7g/t silver as well as 6m at 9.08g/t gold and 46.3g/t silver, Jacks Hut, Missing Link, Parkers Hill, and GD140.

Acquisition terms

Under the agreement, Kingston has agreed to pay Quintana an upfront payment of US$1m in cash and US$8m in share.

The company will also pay a further US$1.5m on production of 15,000oz of gold, US$2m on 22,500oz of gold, US$3.5m once 30,000oz of gold is produced and a final US$1m on the earlier of reaching 37,500oz of gold production or 31 December 2023.

Quintana will receive a 2% net smelter royalty over future mine production from the Mineral Hill area.

 


 

 

This article was developed in collaboration with Kingston Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Gold production the goal of Kingston’s Mineral Hill acquisition appeared first on Stockhead.





Author: Special Report

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Resources Top 5: Big hits, Chalice’s new ‘Julimar like’ target, and Greenland — one of exploration’s final frontiers

Manhattan hits 8m at 40.5g/t gold, including 3m at 105.34g/t Chalice completes first stage of Venture Minerals nickel-copper-PGE project earn … Read…

  • Manhattan hits 8m at 40.5g/t gold, including 3m at 105.34g/t
  • Chalice completes first stage of Venture Minerals nickel-copper-PGE project earn in deal
  • Coda Minerals’ ‘Emmie Bluff Deeps’ IOCG discovery keeps getting bigger

Here are the biggest small cap resources winners in early trade, Monday December 6.

 

MANHATTAN CORP (ASX:MHC)

The stock excited punters late last year when a maiden drilling program discovered a new shallow and high-grade gold lode ’ at the ‘Tibooburra’ project in NSW, 240m west of the historic ‘Main Zone’ at the project’s New Bendigo prospect.

The company failed to maintain this momentum into 2021.

Now the excitement could be back, with MHC pulling up nice hits like 8m at 40.5 g/t gold from about 70m, including 3m at 105.34 g/t at Main Zone.

This wasn’t the only big hit from the completed 20 hole, ~2,100m program either, which is also a good sign.

It also only covered a small, 650m chunk of a much larger 5km long gold-in-soil anomaly.

Future drilling will focus on testing the size of Main Zone which has the potential to be a significant shallow, high-grade gold resource, MHC says.

A planned 5,000m drilling program will now be significantly increased and extended to include diamond drilling at depth (>100m). Drilling is scheduled to kick off after the Christmas Break.

“These are the best gold drill intersections reported from the Koonenberry Region to date,” exec director Kell Nielsen says.

“We are extremely pleased with their significance and feel that they prove the potential of the Tibooburra Project to host multi-million-ounce gold discoveries.”

“The next steps and drill planning will be important in understanding the potential of the mineralised system at New Bendigo where numerous individual lenses (or shoots) may exist.”

“From the recently completed RC drilling, MHC is better placed to target future drilling, specifically the high-grade lenses that traditionally can be up to 15-20m thick and 50-150m wide and plunge or extend over several hundred metres in length.”

The $20m market cap stock is up 30% over the past month, and down 57% year-to-date. It had $3.8m in the bank at the end of September.

 

VENTURE MINERALS (ASX:VMS)

Chalice Mining (ASX:CHN) reckons Venture Minerals has some of the best-looking ground in the Julimar region (besides their own, of course), which is why they inked a earn in JV agreement over VMS’ ‘South West’ nickel-copper-PGE project.

$3.2bn market cap CHN has now completed the first stage of the deal by spending at least $300,000 on exploration by November 30.

The focus right now is Thor’, a 20km long Julimar lookalike magnetic anomaly.

Results of an early-stage electromagnetic program will be announced “once Chalice’s exploration team have received the final data and completed their interpretation of any resultant bedrock conductors”, VMS says.

This is expected in early 2022.

Chalice will follow-up any conductors from the EM program with soil sampling to define potential drill targets. Should Chalice elect to drill the targets it will need to spend a cumulative $1.2 million by 29th July 2022 to earn 51%, and then a further $2.5 million to earn 70%.

“With Venture’s JV partner Chalice Mining completing the first stage of the JV earn-in through the completion of a detailed EM survey, the company now eagerly awaits the survey results,” VMS managing director Andrew Radonjic says.

“The knowledge gained from Chalice’s Julimar discoveries will be a huge advantage in determining which conductors should be drilled first and this no doubt increases the probability of bringing a discovery forward.”

$68m market cap VMS – which also has advanced iron ore and tin-tungsten projects in the portfolio — is up 20% over the past month and down 4% year-to-date. It had about $9m in the bank at the end of September.

 

CODA MINERALS (ASX:COD)

On 9 June Coda announced that its first diamond drillhole at ‘Emmie Bluff Deeps’ IOCG target in South Australia had intersected 200m of “intense IOCG alteration”, including~ 50m of copper sulphides.

The market loved it. IOCG (iron oxide copper gold) discoveries — while often super deep — are big, lucrative, and rare as hens’ teeth.

Subsequent assay results confirmed the potentially company making find which, since then, has only gotten bigger.

The mineralised envelope at Emmie Bluff Deeps has now been “materially extended by drilling to the north, east and south”. It remains open in all directions, COD says.

Critically, hole ‘EBD3W3B’ encountered additional zones dominated by bornite — a high-grade copper sulphide — extending the core of the mineralised zone a further 70m to the south where it remains open.

Assay results from five drill holes, for which visual observations of mineralisation have been released to ASX, remain outstanding due to delays at assay labs, COD says.

The company expects to receive and release most of these results prior to Christmas. A maiden resource for the shallow Emmie Bluff Zambian-style copper cobalt deposit is also on track for release before the end of the year.

“We have now had an outstanding run of nine holes from this and the previous drilling program,” Coda CEO Chris Stevens says.

“All have returned materially important intersections and we are beginning to demonstrate a clear trend of increasing thickness and tenor of mineralisation as we systematically follow the bornite-dominant zone to the south-east.”

“In particular, the results from EBD3W3B are exceptional. Once confirmed by assays, this hole will not only materially extend the known bornite-dominated zone but should also give us one of our thickest sulphide intersections to date.”

“It also appears to have identified at least one major mineralising structure, providing a significantly improved structural understanding of the deposit – and possible vectors towards a basement-tapping source or ‘pipe’ structure.”

COD has now approved an “ambitious” ongoing exploration program which is underpinned by a strong cash balance of $17.8m at the end of the September quarter.

The $90m market cap stock is up 11% over the past month, and 211% year to date.

 

PRAIRIE MINING (ASX:PDZ)

(Up on no news)

Former coal minnow PDZ has done a full 180-degree swivel, dumping its fossil fuel focus in favour sexier, ‘new age’ metals like copper, nickel and PGMs. It is also changing its name to GreenX Metals.

The main game is some newly acquired ground in Greenland called ‘Arctic Rift’, where historical exploration results are indicative of an extensive mineral system “with potential to host world-class copper deposits”.

Greenland is increasingly recognised as one exploration’s final frontiers, as melting ice caps reveal more ground. All the big boys want a slice, PDZ says.

” A boat’s a boat, but the mystery box could be anything!” — Peter Griffin.

“Greenland is increasingly recognised as one of the last great mineral resource frontiers having recently attracted interest from Rio Tinto, Anglo American, DeBeers, Glencore, Trafigura, and IGO, as well as KoBold Metals who have joint ventured with Bluejay Mining to explore in Greenland for critical materials used in EVs,” it said October 6.

“KoBold is backed by Microsoft co-founder Bill Gates, Bloomberg founder Michael Bloomberg, Amazon founder Jeff Bezos, and Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates.”

The $61m market cap stock is up 4% over the past month, and 41% year-to-date. The company is looking to raise $4.6m to fund the Greenland acquisition and exploration into the new year.

 

BLACK ROCK MINING (ASX:BKT)

POSCO-backed BKT wants to bring its advanced ‘Mahenge’ graphite project in Tanzania into production.

Mahenge’s 212 million tonne graphite resource makes it the fourth largest in the world. BKT says it has lowest peak capital expenditure per annual tonne of production of any development stage global graphite project and would enjoy a high AISC margin of 63.1% once in production.

The company has just completed a massive 500t pilot plant run – the largest ever, it says — to send to off for qualification (testing) to POSCO and potential customers in North America, Asia and Europe. This will ultimately support project financing, BKT says.

“Black Rock has delivered the largest customer qualification program in the graphite sector globally, that continues to demonstrate to the market that we have a high-quality commercial grade product,” BKT managing director John de Vries says.

“The positive outcomes from this large-scale qualification plant campaign effectively provide a robust platform for our strong customer base to now base their decisions to confidently partner with Black Rock for the long-term.”

“This in turn provides confidence to financiers that the robust economics of the Project are supported through a clear path to market.”

BKT now needs to finalise off-take terms with POSCO and secure finance to underpin $US116m Phase 1 development capex.

The $170m market cap stock is down 17% over the past month, and up 100% year-to-date. It had $9.3m in the bank at the end of September.



The post Resources Top 5: Big hits, Chalice’s new ‘Julimar like’ target, and Greenland — one of exploration’s final frontiers appeared first on Stockhead.







Author: Reuben Adams

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Bitcoin: Welcome To The Big Leagues

Bitcoin: Welcome To The Big Leagues

Submitted by bithedge

If there was still anyone left shouting that Bitcoin is an uncorrelated asset they…

Bitcoin: Welcome To The Big Leagues

Submitted by bithedge

If there was still anyone left shouting that Bitcoin is an uncorrelated asset they were put to rest in recent days. And what was once confined to obscure corners of the internet has obviously left them a long time ago, but it truly feels like this was the week that cranked things to 100…

In moments of major stress Bitcoin has followed risk assets for years – hardly much of a ‘digital gold’ but crisis is crisis, and recall during the March 2020 puke that even the precious metal was dumped indiscriminately alongside bonds and everything else as confused traders and algos were either forced or scared into dumping it all for cash. There is a saying that in real volatility “all correlations go to 1.”

What is more concerning is the strengthening connection between Bitcoin (and thus Ethereum, and thus altcoins) and greater financial assets when equities are 3% off all time highs. This speaks to either 1) a greater integration of Bitcoin into the wider risk-on/risk-off framework that both traders and computers are programmed to buy or sell out of depending on mostly whether or not rate hike expectations are up that day, 2) a market that is under increasing stress despite being just off all time highs and up 23% YTD, or 3) both…

Of course nothing is really as simple as just risk-on or risk-off, and Bitcoin, on top of being long beta / long momentum, is a great beneficiary of inflation both realized and expected. 

That’s certainly one of the reasons why it’s up 160% over the past year (at this point anyone with an internet connection knows that no doubt about it – this is the highest inflation the U.S. has seen in 50 years). Even Powell ditched ‘transitory’…

AND a third factor in Bitcoin’s favor may be establishment distrust, which is obviously higher following two years of Americans being told their lives are now vastly different because the bat coronavirus that first emerged blocks away from an NIH-funded lab that studied bat coronaviruses actually was just an unfortunate development in a cave somewhere. BofA has dubbed it an “anarchy hedge” – record wealth inequality and soaring inflation seem to set the stage for taking out some insurance.

So since the three things that drive bond yields higher are conveniently risk-on, higher inflation expectations, and higher credit risk, it’s no surprise that Bitcoin trades even tighter alongside the 10 year: 

Which begs the question of why not just go short the 10 year in size and avoid the regulatory and custody risks that come with holding crypto? If this trend holds for another year, that’ll be a question many are hoping you don’t ask. But for the average person buying Bitcoin is easier than short selling bonds – and in a market where passive > active flows and retail is a prominent force that may be all it takes for the coin to remain in fashion. 

Recent developments are undoubtedly a thorn in the side of the once-isolated crypto trading community, filled with many who after spending years mastering their specific market are now essentially in competition with firms backed by billions in capex and decades of experience. Because unless it’s also a coincidence that Tesla and Bitcoin have hit their high or low for the month on the same day 8 out of the last 15 months, it really appears that Bitcoin trades only as a composite of long ‘the next big thing’ FOMO and short U.S debt. There’s nothing wrong with that – the trade has done well. But it’s a slap in the face to the uncorrelated/digital gold/reserve asset narrative. And it’s a major blow to those who were looking for an ‘alternative’ investment. Increasing correlation with bonds and equities is the biggest threat to Bitcoin right now. 

It’s possible and maybe even likely that this is temporary – but whatever needs to happen for Bitcoin to again decouple from greater markets hasn’t happened yet. In light of the past two weeks, can anybody seriously say right now that they think Bitcoin will end the year higher than where it is currently if the S&P 500 doesn’t?

But to be fair, long term hodlers really don’t have anything to worry about since if the world post-GFC is any guide, the current pullback in equities will bottom out soon and if it doesn’t – the Fed will just announce a pause in their tapering plans and at that point everyone should go even more all in because rest assured it will give way to new all time highs for the Nasdaq, home prices, inequality, and the newest member of the liquidity-firehose winners club, Bitcoin. 

Tyler Durden
Sun, 12/05/2021 – 21:30






Author: Tyler Durden

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Metalicity hits bonanza 77.4g/t gold in new zone east of Leipold

Special Report: Metalicity’s Kookynie project is looking increasingly appetising after drilling uncovered bonanza gold grades in a new zone 200m ……

Metalicity’s Kookynie project is looking increasingly appetising after drilling uncovered bonanza gold grades in a new zone 200m east of the main Leipold Lode.

Notable reverse circulation drilling results in the new zone are 1m grading 77.4 grams per tonne (g/t) gold from 74m within a broader 10m zone at 8.34g/t gold from 64m (LPRD0002) and 1m at 5.3g/t gold from 74m within a 3m intersection grading 3.05g/t gold from 73m (LPRD0005).

Importantly for Metalicity (ASX:MCT), the results indicate a possible new parallel lode to the main Leipold Lode and demonstrates that the area is very prospective for further high-grade mineralisation.

“These are spectacular results, and the identification of an outlying bonanza intercept further adds to the excitement of this prospect,” chief executive officer Justin Barton said.

“This adds up to a very exciting picture of significant potential to grow laterally, as well as along strike and down dip at Leipold, with significant mineralisation at depth encountered from the core of the diamond drilling for which we eagerly await assays.”

He added that the potential to deliver a step change in the initial resource estimate bodes well for the project and highlights the commercial sense behind its proposed acquisition of Nex Metals Exploration (ASX:NME).

Assays are pending for the company’s diamond drilling.

Leipold Prospect plane of vein section with recent drilling. Pic: Supplied

Drill results

The results from the RC pre-collars of both LPRD0002 and LPRD0005 are considered to be exceptional with the 10m intersection in the LPRD0002 demonstrating a very consistent and wide mineralised intercept.

Results from the diamond drilling portion of both holes are expected to be intriguing to say the least, with the company already planning to test the dimensions of these intercepts and how they may potentially contribute towards the resource estimate on a possible separate lode.

Follow up drilling is planned for the new year within this area.

Density measurements from the core are being completed and will form the basis for the tonnage aspect of the resource estimate.

Metalicity expects these to be completed by early December with the metallurgical test work also expected to be finalised by mid-December 2021 as well.

 


 

 

This article was developed in collaboration with Metalicity, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Metalicity hits bonanza 77.4g/t gold in new zone east of Leipold appeared first on Stockhead.



Author: Special Report

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