Kingston Resources Ltd. · ASX:KSN
Kingston Resources — Investor Presentation (September 2018)
28 slides from Kingston Resources's investor presentation, Sep 14, 2018
Slide 1: Advancing the 2.8Moz Misima Gold Project
Advancing the 2.8Moz Misima Gold Project ACN 009 148 529 September 2018 T: +61 2 8021 7492 www.kingstonresources.com.au Misima Mine, mid 1990’s
Slide 2: Overview
Overview Focused gold company with two advanced exploration projects • Misima Gold Project (70%) 2.8Moz1 JORC Resource, historical, highly profitable large scale open pit in the Louisiade Archipelago, PNG • Livingstone Gold Project (75%) highly prospective location within the Bryah Basin with multip
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Board and Management Shares on issue 1,223,198,383 shares Chairman Anthony Wehby FCA, MAICD Market capitalisation (@ A$0.024) A$29.2m Managing Director Andrew Corbett BE (Hons) MBA Cash on hand (as at June 30, 2018) A$4.4m Executive Director Andrew Paterson BEng
Slide 4: Project Overview: Misima Gold Project (70%)
Project Overview: Misima Gold Project (70%) • Existing 2.8Moz resource, – 82.3Mt @ 1.1 g/t Au & 5.3 g/t Ag * • Current resource remains open along strike and down dip • Significant untapped exploration potential outside of the resource • Long mining history from 1888 – multi million ounce endowment
Slide 5: Misima: Production Advantage
Misima : Production Advantage Papua New Guinea: Misima: Approvals: ➢ Proven geological domain ➢ Island location, Melanesian culture ➢ Transparent, stable mining regulations and approvals process ➢ Large scale Au + Cu projects ➢ Supportive local landowners ➢ Proven approved as a special mining ➢ PNG
Slide 6: Misima: Past success
Misima: Past success • Placer produced 3.7Moz Au and 22Moz Ag • Decision to close in 1999 due to low gold price • LOM cash cost U$218/oz • Open pit mined from 1989 to 2001 • Stockpiled ore treated to 2004 • Mill nameplate 5.5Mtpa, achieved 6.9Mtpa • LOM recoveries, gold 91.7% and silver 48% • Low co
Slide 7: Misima: Multiple exploration targets
Misima: Multiple exploration targets Umuna Extensions: 2.8Moz Au resource open along strike and down dip – potential for shear-hosted and skarn mineralisation Misima North: >4km untested strike open to the north, supported by historic u/g mining, geochemistry, and KSN structural review. Under-explor
Slide 8: Misima: Regional exploration targets
Misima: Regional exploration targets Umuna East - Double Chance Kingston has already identified multiple surface targets outside of the current resource • Strong artisanal mining presence on splays east of historic pit recovering wire gold from oxidised veins • Mapping and fieldwork to commence Gina
Slide 9: Misima: Current drilling
Misima: Current drilling An extensive exploration drilling campaign is underway, the first undertaken at the project in almost 20 years. Initial targets for current drill program: • Umuna Shear: testing down-dip beneath historic drilling at North Kulumalia and Central Umuna zone • Umuna East: testin
Slide 10: Misima: Resource upside potential at Umuna
Misima: Resource upside potential at Umuna • Phase I drilling targets resource extension at depth where resource is currently drill constrained • Resource limited by shallow depth of drilling over much of Umuna’s strike length • Average historic hole depth ~119m with only 9% of holes exceeding 200m
Slide 11: Misima: Active work program advancing
Misima: Active work program advancing Phase I Established extensional drilling exploration team Underway Complete Commence field Commence feasibility work Umuna North work Underway Commence geochemical Phase II extensional Environmental field work and infill drilling studies begin Complete Q4 2017 H
Slide 12: Project Overview: Livingstone Gold Project (75%)
Project Overview: Livingstone Gold Project (75%) • Located 140km NW of Meekatharra in Western Australia over 220km2 • Historic WMC soil anomaly at Livingstone’s Find hosts numerous old workings • Livingstone North historical underground mined ~1,260oz at avg 21.65 g/t Au (1939) • Livingstone’s Find
Slide 13: Livingstone Gold Project
Livingstone Gold Project Homestead Prospect holds a 49,000 JORC 2004 Inferred Resources with high grade results: – 18m @ 7.85 g/t from 68m – 5m @ 20.5 g/t from 3m – 14m @ 3.49 g/t from 2m – 7m @ 12.59 g/t from 35m – 18m @ 3.03 g/t from 45m Auger program around tenements confirmed strong gold anomali
Slide 14: Livingstone Gold Project
Livingstone Gold Project Latest drilling highlights strike length and grade at Kingsley prospect. A follow-up drilling program commenced on 8 September 2018. 14
Slide 15: Peer comparison: EV / oz gold in Resources
60 80 200 0 20 100 160 120 180 40 140 Azumah Resources Nusantara Kingston Resources Anova Metals Sihayo Gold OreCorp Geopacific Resources Capricorn Metals Excelsior Gold Limited Cardinal Resources Kin Mining Prodigy Gold De Grey Mining Peer comparison Echo Resources Eastern Goldfields Emerald Resour
Slide 16: In summary
In summary • A 2.8Moz Au resource that is growing in scale and grade through exploration • Highly credible global JV partners in Nippon Metals and Mitsui • Aiming to re-establish Misima as a large scale and low cost open pit gold mine • Livingstone Gold Project in WA also has considerable upside pot
Slide 17: Contact
Contact Andrew Corbett – Managing Director Chris Drew – Chief Financial Officer P: +61 2 8021 7492 E: info@kingstonresources.com.au Kingston Resources Limited 205/283 Alfred St, North Sydney NSW 2060, Australia www.kingstonresources.com.au Research Coverage Bridge Street Capital Partners Dr Chris Ba
Slide 18: Appendices
Appendices • Misima Resource • Placer Operating Data • Exploration: – Umuna Extensions – Misima North – Umuna East Side – Quartz Mountain • Merger with WCB Resources • Board and Management 18
Slide 19: Misima Resource
Misima Resource ▪ November 2017, JORC2012 Resource of 82.3Mt at 1.1 g/t for 2.8Moz 1 Deposit Material Resource Cutoff Tonnes Gold Silver Au Moz Ag Moz Category (g/t Au) (Mt) (g/t Au) (g/t Ag) Umuna Sub-total Indicated 0.5 37.2 1.1 4.9 1.3 5.8 Inferred 0.5 38.4 1.0 6.1 1.3 7.5 Total Combined 75.7 1.1
Slide 20: Misima: Placer key operating parameters
Misima: Placer key operating parameters Misima statistics from Placer Pacific Annual Reports 1989 – 2004 1 Reserve grade at end of 1990 1.26 g/t Au Grade milled between 1991 and 2004 inclusive 1.53 g/t Au Grade reconciliation between Reserves and Milled 121% Reserves at end of 1990 1.9Moz Gold produ
Slide 21: Exploration: Umuna Extensions
Exploration: Umuna Extensions ▪ Placer’s focus on mining the Umuna reserve has left multiple extensional prospects untested ▪ With the prevailing low gold price, Placer had little incentive to pursue exploration opportunities outside the reserve ▪ Historic drilling outside the Umana pit includes: ▪
Slide 22: Exploration: Misima North
Exploration: Misima North ▪ Recent structural work has elevated exploration potential at Misima North, suggesting previous drilling has not properly tested the shear position ▪ Known anomalism and mineralisation at Misima North East is indicative of supergene leakage from the shear ▪ Historic channe
Slide 23: Exploration: Umuna East Side
Exploration: Umuna East Side ▪ Mineralised structures splaying southeast off the Umuna Shear, highlighted by structural mapping, geochemistry and artisanal mining ▪ Strike lengths >1km with potential for significant extensions ▪ Channel sampling by Placer & WCB includes: Kulumalia - 20m @ 4.07g/t Au
Slide 24: Exploration: Umuna East Side continued
Exploration: Umuna East Side continued Artisanal mining Ginesia splay, August 2017 Artisanal mining Grants splay, 2015 estimated 50-60 m vertical height 24
Slide 25: Exploration: Quartz Mountain
Exploration: Quartz Mountain ▪ Quartz Mountain hosts a small resource, but drilling has been limited ▪ Historic drilling at Quartz Mountain include: ▪ 10m @ 3.06g/t Au from 108m to end of hole in ERC693 ▪ 12m @ 4.13g/t Au from 116m in EMD701 ▪ 14m @ 2.28g/t Au from 76m in ERC2263 ▪ 60m @ 2.29g/t Au
Slide 26: Merger with WCB Resources
Merger with WCB Resources ▪ Kingston Resources merged with WCB Resources under a successful Canadian Plan of Arrangement on 17 November 2017 ▪ WCB was subsequently delisted from the TSX ▪ KSN then assumed management of the Misima Gold Project located in Papua New Guinea ▪ Upon merger completion KSN
Slide 27: Board and Management
Board and Management Anthony Wehby – Chairman Anthony was a founding director and former Chairman of Aurelia Metals Ltd, an ASX listing mining company, in his role oversaw the progression of the company from exploration through to production. Prior roles include Chairman of Tellus Resources and a di
Slide 28: Disclaimer
Disclaimer Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Kingston Resources Limited (“KSN”) and its projects, are forward looking statements. Such forward looking statements: • include, among
Kingston Resources — Investor Presentation (September 2018) on 6ix