AUSTRALIAN explorer Kingston Resources (KSN) has strengthened its on-the-ground presence in Papua New Guinea in preparation for permitting and development of its flagship Misima gold project.
The company has appointed Geoff Callister to expand its in-country management team as the project progresses through mining studies and regulatory approvals.
Callister will lead the preparation of an environmental impact statement and mining lease application and help develop and implement Kingston’s social and community programmes at Misima.
These programmes included engagement with local communities, landowners and government authorities and had been considered “critically important” to the project’s success.
Kingston managing director Andrew Corbett said Callister’s role would help accelerate Misima through to the next stage of development.
“Callister brings a set of vital skills to the Kingston team backed by extensive professional experience working at Misima Island and more broadly within Papua New Guinea,” he said.
“He has worked on landmark projects in Papua New Guinea and we are very much looking forward to welcoming him as we move to the next exciting stage at Misima.”
Last November, Kingston delivered the Misima pre-feasibility study which forecast gold production of approximately 130,000oz per year at an all-in cost of AU$1,159 (K3,119.21) per ounce over an initial 17-year mine life.
The study contained a projected life-of-mine revenue of almost AU$5 billion (K13.45bil), free cashflow of AU$1.5 billion (K4bil), a pre-tax net present value (NPV) of AU$822 million (K2.2bil) and an internal rate of return (IRR) of 33 per cent based on a conservative gold price of US$1,600 (K4,306.07) per ounce.
At a gold price of US$1,900/oz (K5,113.46/oz), the project could expect to deliver a NPV of AU$1.28 billion (K3.4bil) and an IRR of 48 per cent.
Kingston currently has two diamond drill rigs conducting extensional and in-fill drilling within the existing Misima resource area which comprises 3.6Moz gold.
The company is also advancing environmental and approvals programme in preparation for commencement of definitive feasibility study work later this year.
The National / Pacific Mining Watch
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