misima gold project past, present and future...mmpl operational process plant & port maika...

Misima Gold Project

Past, Present and FutureBuilding a substantial long-life, low-cost gold

operation at the 3.2Moz Misima Gold Project, PNG

AIG Technical Talk| 8 September, 2020

Stuart Hayward, Chief GeologistLarge-scale development

Pre-Feasibility Study underway

Ore Reserve targeted for late 2020 ASX: KSN

www.kingstonresources.com.au

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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 other things, statements regarding incomplete and uncertain proposals or targets, production and prices, operating costs and results, capital expenditures, and are or may be based on assumptions and

estimates related to future technical, economic, market, political, social and other conditions;

• are necessarily based upon a number of estimates and assumptions that, while considered reasonable by KSN, are inherently subject to significant technical, business, economic, competitive, political and social

uncertainties and contingencies; and

• involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking

statements.

KSN disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”,

“contemplate”, “target”, “scope”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements. All forward looking statements made in this presentation

are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on

forward looking statements due to the inherent uncertainty therein.

Disclaimer

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent

permitted by law, none of KSN, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the

information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any

forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and

contingencies.

The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this

presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment

objectives, financial situation or particular needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is

appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

Competent Persons Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Stuart Hayward (BAppSc (Geology)) MAIG, a Competent Person who is a member of the

Australian Institute of Geoscientists. Mr Hayward is an employee of the Company and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being

undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hayward consents to the inclusion in this

report of the matters based upon the information in the form and context in which it appears.

Kingston confirms that it is not aware of any new information or data that materially affects the information included in all ASX announcements referenced in this release, and that all material assumptions and technical

parameters underpinning the estimates in these announcements continue to apply and have not materially changed.

Exploration by Other Explorers

This presentation contains information sourced from the reports of Other Explorers. References to the original reports are provided as footnotes where the information is cited in this presentation. KSN does not vouch for the

accuracy of these reports. KSN has taken the decision to include this information as it is in the public domain and as we assess it to be of relevance to shareholders and investors.

Disclaimer


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Presentation Outline

• Brief History and Geo tourism

• Corporate Overview

• Geology and Exploration 2018-2020


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5

Misima Gold Project

Misima Island

• Over 130 years of gold production

• Over 7Moz of endowment to date

• 600km east of Port Moresby,

• Louisiade Archipelago, Milne Bay Province

• 30+ years of ‘recent’ geological and production data

• Significant number of PNG national and expatriate

workers engaged over the years

• Like PNG, it’s a project that gets into your blood

• To this day Kingston continue to engage with and are

leveraging this knowledge and experience in PNG and

Australia

PAPUA NEW GUINEA


6

Gold Discoveries and Mining in PNG 1888-1942

After Trevor Neal: Historical Overview of Mining Development (PNG). Presentation to Mining Club-Nov. 2003

• PNG has a long history of gold exploration and mining

• First phase of Mining development 1888-1914

• All mining activities confined to Papua. • Minor exploration in German New Guinea• Mostly alluvial gold but underground developments commenced

mostly in 1900’s

• Second phase of Mining development 1922-1942

• Most activities focused in New Guinea. (Wau / Bulolo) Lesser

activities in Papua.

• All activities ceased due to Pacific War (1942- 1947)

• Misima featuring prominently in the early development of the mining

industry in PNG


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After Trevor Neal: Historical Overview of Mining Development (PNG). Presentation to Mining Club-Nov. 2003

Mining on Misima Island in the 1930’s

• Misima exploited for alluvials in the 1880’s followed by hard

rock mining in the 1930’s

• Public companies floated and shares offered

• Significant infrastructure and open pit and underground

development established

• Quartz Mountain; Gordons; Misima Reefs; Mt. Sisa;

Cuthberts; Grants…………..

Gold Mines of Papua- Process Plant


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Mining on Misima Island – The Placer Days

• Placer (Misima Mines Pty Ltd) operated Misima from 1986 - 2004

• 3.7Moz Au & 22Moz Ag produced

• 15-year, low-cost Placer mining operation (1986-2004)1

• Mining from 4 open pits

• Umuna (Stage 6; Umuna; Tonowak; Kulumalia)

• Ewatinona

• Kobel & Maika

• Operation closed in 2004 due to low gold price (c.

US$300/Oz)

• Demobilisation of infrastructure and rehabilitation of mine,

waste dumps & stockpiles up to 2012

1. Historical Misima production documents, Placer Annual Reports and Placer mine production documents 1989-2004

MMPL Process Plant & Port Maika

Port Maika & Process Plant Site Towards Maika Pit & Umuna


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Mining on Misima Island – The Placer Days

MMPL Process Plant & Port Maika c. 2005

Historical Aerial Photography of the Misima Mine, c. 1990-1994MMPL Operational Process Plant & Port Maika


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Misima Island Today

Port Maika & Process Plant Site

Red point towards Stage-6 Pit

Red point towards Tonowak-Kulumalia-Bwagaoia

Port Maika &

Process Plant Site

Bwagaoia

Ewatinona

Stage 6

Tonowak

Umuna East

Kulumalia

Mt Sisa

Kobel

Maika

Misima Nth

Ginamwamwa


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Misima Island Today

Port Maika & Process Plant Site Towards Maika Pit & Umuna

Port Maika &

Process Plant Site

Bwagaoia

Ewatinona

Stage 6

Tonowak

Umuna East

Kulumalia

Mt Sisa

Kobel

Maika

Misima Nth

Ginamwamwa

Today: Port Maika & Process Plant Site Towards Maika Pit & Umuna


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Mining on Misima Island – Today

• Artisanal Mining- alluvial and hard rock

• Open workings in most drainages, historical pits and benches

• Wherever benches are reopened and drilling locations

• Primary income on Misima & +100 FIFO mine workers for other operations in

PNG

Supergene gold – Ginamwamwa Prospect Artisanal Miners– Ginamwamwa Prospect

Sluicing colluvial and hard rock material- Abi-Kila Prospect

Happy Director– Ginamwamwa Prospect


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Gold Explorer & Developer – ASX Listed : KSN

Fully-funded to deliver key

investment catalysts with PFS and

Ore Reserve targeted by year-end

1. See KSN ASX announcement 24 June 2020, "Kingston Resources secures 100% of Misima Gold Project” 2. See KSN ASX announcement on 21 May 2020 for further detail

• High-grade gold discovery in

WA’s Bryah Basin

• Current drilling program commenced

in July 2020

• Targeting a maiden JORC Resource

on Kingsley

• Multiple exploration targets yet to

be tested

LIVINGSTONE GOLD PROJECT

(KSN: 75%) Western Australia

Livingstone

TWO HIGH-QUALITY PROJECTS

• 3.2Moz Au & 18.2Moz Ag Resource

with significant exploration upside2

• Extensive mining history

significantly de-risks development

pathway

• Pre-Feasibility Study underway, on

track for completion by Q4 2020

• Aiming to be the next low-cost,

large-scale gold producer in the

Asia-Pacific

MISIMA GOLD PROJECT

(KSN: 100%1) PNG

Misima


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Misima Gold Project: Overview and Key Statistics

Misima Island

• Over 130 years of gold production

• Over 7Moz of endowment to date

• 600km east of Port Moresby, Milne Bay Province

Misima Resource update released 21 May 2020

• 106Mt @ 0.93g/t Au for 3.21Moz1

Misima production advantage

• Brownfields site with infrastructure

• Highly skilled and supportive local community

• Excellent access with commercial flights and sea freight

Misima - aiming to repeat the past

• Placer operated a large-scale, long life open pit mine

• Placer ran a successful +5Mtpa standard CIL plant

PAPUA NEW GUINEA

1. See KSN ASX announcement on 21 May 2020 for further detail


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Misima Project Development Strategy

• Development underpinned by existing

3.2Moz Resource1

• PFS completion targeted by Q4 2020

• Leveraging 15 years of previous production history

• Over 15 years of production Placer processed:

90Mt, averaging 230,000ozpa @ US$218/oz2,3

• New plant to replicate successful Placer design

• Haul roads, port, airstrip in place

• Pit, plant, camp, haul road, port locations all

unchanged

• Geotechnical and metallurgical information well

understood

• Ore Reserve targeted by end of 2020

• EIS baseline work now underway

FOLLOWING PLACER’S PATHWAY TO PRODUCTION

Placer decision

to close

Historical photograph of Misima mill


2. Placer Annual Reports 1989 to 2004, Placer Archive

3. Kennedy, 1994, AUSIMM, “Misima Mines milling operation: one of the World’s lowest cost conventional gold extraction plants”

Historic Gold price (USD)


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2020Regional fieldwork

Exploration drilling Resource drilling

Misima: Active Work Program Advancing

Q1 Q2 Q3 Q4

JORC Resource update

Environmental baseline work

Mining studies

Project approvals

Moving from exploration to development focus

• Environmental baseline work ongoing, EIS expenditure to step up post PFS

• Mining studies underway and advancing well

• Targeting PFS and reserve by end of 2020

• Once drilling can restart, focus will be on resource definition.

Drilling & Geology


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Misima: Community Support the Key to Success

• 130-year history of artisanal mining

• Skilled resident workforce, with over 100 FIFO Misima residents

• Kingston Project Manager, Charles Yobone, working closely with local

landowners

• Strong local support of Kingston’s program, residents keen to see mine re-open

• Community development roadmap in place that underpins strong engagement:

‒ Identify landowner priorities

‒ Community meetings

‒ Local employment

‒ Community support projects

‒ Identify sustainable business opportunities

Misima Councillors’ meeting

Misima School’s year-7 excursion to core yard

Misima locals PNG nationals Expatriates

Placer 1989-03 79% 5% 17%

Kingston current 78% 20% 2%


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Misima Regional Geology

Region with complex evolution

Miocene - continued oblique convergence between the Australian and

Pacific plates causes the Solomon microplate to split from the Australian

plate forming an extensional basin (Woodlark Basin)

Pliocene - Woodlark Rift propagates westwards + mantle derived alkalic

intrusive activity

• Early extension of Woodlark Basin – Boiou micro-granodiorite is

emplaced at both Mt Sisa and the Quartz Mountain / Ewatinona areas

• Metamorphism and silicification of the carbonate units (St Patrick’s

Limestone-Halibu or coarse sparry calcite) produced localised skarns

• Fault controlled hypogene gold-silver and base metal mineralisation @ 4

- 3.2 Ma (Sericite- Ar-Ar and K-Ar) (Fanning, 1995, 1996)

• Gold-silver and base metal mineralisation adjacent to Boiou micro-

granodiorite intrusive centres

• Extensive supergene enrichment (Manganese wad)

Quaternary - rapid uplift with extension accommodated on Weipoou Creek

Fault. Western end of Misima raised over 400m and tilted to the north

GSPNG, Placer Expl. (pre-1989), MMPL (1989-2000), PPC (2011-12), WCB (2010- 2015) and various technical reports and constructive summary memos by Standing (1993) Logan and Appleby (1994), Esser (1996), Appleby & Adshead (1995), Adshead (1995-2000), Woodbury, Kari & Palaulo (1997-2000), Meldrum 2015 and others

Topography, bathymetry and regional tectonic setting of New Guinea and Solomon Islands. Arrows

indicate rate and direction of plate motion of the Australian and Pacific plates (MORVEL, DeMets et

al., 2010); Mamberamo thrust belt, Indonesia (MTB); North Fiji Basin (NFB). (Holm Et. Al. 2016)


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Misima Geology

• Eastern extension of the central mountain chain of the island of New

Guinea geological terrains to SE

• West Half: High grade metamorphic (core complex) Awaibie Association;

metamorphosed ophiolite sequence

• Separated by the Weipoou Creek detachment

• East Half: Upper-grade metamorphic greenschist facies rocks Cretaceous

rocks of the Sisa association

• Meta-sediment, metabasalts, and meta-volcanics,

• Define the upper Umuna schists-on-Halibu Calc-silicate-on-Ara

greenstone-on lower Bulpat schist stratigraphy

• Miocene Boiou microgranodiorite intruded as sills and dykes at

two main centres a Mt Sisa and Quartz Mountain

• Gulewa Formation volcanics and associated sedimentary rocks

that unconformably overlie the Sisa association

• Fringing Quaternary coralline limestone

• Complex structural evolution

• Periods of extension and compression

• Isoclinal folding of Sisa Assoc. during D1 (So//S1)

• Granitic Intrusions post D1 to Syn D2

• D2 compression

• D3 extension

• Gold-silver mineralisation late Post D2

• Significant rotation of б1 = Structure reactivation over time

Adshead 1997

Cameron 2019


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Mineral System Model

• Major deposits and prospects in PNG associated with arc parallel and transfer structures

• Major structures localise intrusions and ores with mineralisation often within second order structures

• Hydrothermal fluids evolve during migration within major structures

• Most epithermal mineralisation occurs as ore shoots in

• More dilational settings

• Structural intersections as sites of fluid mixing

• Reactivation of dilational settings provides multiple mineralisation events and higher Au grade

• Structures allow evolved and near-surface waters to re enter the hydrothermal system for mixing reactions

• Structures may offset ore post-mineralisation

• Misima Mineral Systems Model

• Early porphyry style (skarns, Po style veins, K-alt)

• Overprinting Carbonate base metal Au mineralisation

• Uplift and erosion inferred

• All lithological units are potentially mineralised

• Rheology change by alteration in some cases

Text and Figure After Corbett Epithermal & Porphyry Ore Deposits Short Course 2013-2020


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• 30+ years of data

• Well established geology foundation based on extensive mapping and analysis

• Surface geology generally reliable with local variation between authors depending on scale

• Geology by Benko used as regional scale underlay

• The structure grain of Misima Island has been described and interpreted in detail over time with framework reported by Esser 1996 being ratified by subsequent authors and KSN work

• Logan (WCB) completed comprehensive compilations of most primary target areas

• Geophysics data sets reinforces the structure framework with a complex interplay of WNW, NW, E-W and N-S trending structures

• Mineralised systems

• developed in close proximity to intersections of major regional scale structures

• On reactivated structures within the pre-existing architecture

• All lithologies are prospective with some requiring preparation for brittle failure through alteration and veining

Regional Geology and Structure


24

Regional Geology and Structure

• 30+ years of data

• Well established geology foundation based on extensive mapping and analysis

• Surface geology generally reliable with local variation between authors depending on scale

• Geology by Benko used as regional scale underlay

• The structure grain of Misima Island has been described and interpreted in detail over time with framework reported by Esser 1996 being ratified by subsequent authors and KSN work

• Logan (WCB) completed comprehensive compilations of most primary target areas

• Geophysics data sets reinforces the structure framework with a complex interplay of WNW, NW, E-W and N-S trending structures

• Mineralised systems

• developed in close proximity to intersections of major regional scale structures

• On reactivated structures within the pre-existing architecture

• All lithologies are prospective with some requiring preparation for brittle failure through alteration and veining


25

Regional Magnetics

RTP- Analytical Signal 2012

• Geophysics data sets reinforces the framework with a complex interplay of WNW, NW, E-W and N-S trending structures

• Complex geology = complex magnetic signature

• Major structural architecture clearly evident

• Detailed interpretation of multiple data sets adds to the structural picture

• Often, single to multiple point soil anomalies coincident with interpreted structures adding to prospectivity


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• Geophysics data sets reinforces the framework with a complex interplay of WNW, NW, E-W and N-S trending structures

• Complex geology = complex magnetic signature

• Major structural architecture clearly evident

• Detailed interpretation of multiple data sets adds to the structural picture

• Often, single to multiple point soil anomalies coincident with interpreted structures adding to prospectivity

Regional Magnetics

LiDAR Topography 2018

RTP- Analytical Signal 2012

Structure grain in LiDAR topography at all scales


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• Major deposits in PNG @ intersection of arc parallel and transfer structures

• N-S trending structures not uncommon in the region as inferred transfer structures

• Opening of the Woodlark Basin inducing N-S compression and subsequent dextral movement on pre-existing structures at the time of mineralisation

• Geochemical trends and mineralised centres at the intersections and along structures

Regional Geology - Local Structure and Mineralisation


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• Compound structural corridor

• Interpreted west side down (pre mineralisation)

• Zone of brecciation, fracturing, & shearing

• Retains components of all the dominant structure trends mapped across Misima

• High-grade mineralisation at Umuna occurs within a ‘sea of low grade’ in reactivated structures within the Umuna Fault Corridor

• Later faulting has dismembered mineralisation

• Soil geochemistry anomalism distribution is controlled by the prevailing structure architecture

• Misima Nth an Ewatinona can be interpreted as sitting on a N-S trending lineament

• Elements of Umuna East can also be interpreted as being controlled by a parallel N-S trending lineament

Umuna Fault Corridor

Leapfrog grade shells from Grade Control data


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• Early porphyry signature (Leach 1995-1996)

• Skarns and Po-style veining adjacent Mt Sisa

• Overprinted by base metal sulphides + Gold-Silver mineralisation

• Reactivated structures

• Crackle breccias

• Mosaic and milled breccias

• Late stage reactivation post mineralisation

Mineralisation (Umuna)

GDD014 shear-silicifed breccia- CBM Vein

GDD014 CBM Vein-Bx in meta basalt

GDD014 56m @ 1.01g/t Au from 110m

GDD014 Brecciated meta basalt post CBM veining

GDD001 Strong oxidised skarn (Mt Sisa)

GDD001 CHl-Mt skarn + late stage Po-style vein (Mt Sisa)


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Umuna Deposit: High-Grade Structures

Umuna hosts a number of high grade structures

inside a broader mineralised corridor

Intersections include1:

• 84m @ 7.20g/t Au

• 20m @ 17.04g/t Au

• 36m @ 8.50g/t Au

• 64m @ 4.13g/t Au

• 40m @ 6.49g/t Au

• 78m @ 2.76g/t Au

• 57m @ 3.39g/t Au

• 90m @ 1.84g/t Au

• 66m @ 2.40g/t Au

• 68m @ 2.21g/t Au

• 71m @ 2.08g/t Au

• 40m @ 3.69g/t Au

• 76m @ 1.88g/t Au

• 52m @ 2.51g/t Au

• 31m @ 4.04g/t Au

1. For JORC Resource & Exploration tables see KSN.ASX announcement 21 May 2020


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Umuna Deposit: 3.0Moz Resource – 52% Indicated

Umuna Resource: 94.5Mt @ 0.93g/t Au, 5.6g/t Ag

Exceptional upside potential:

• Umuna open pit previously produced over 3.5Moz Au

• Resource is drill constrained with outstanding potential to

increase ounces at depth and to the north

• Shallow drilling with average hole depth ~119m and only

9% of holes exceeding 200m

• Potential for additional mineralisation in hanging wall and

splays

Drilling highlights1:

40m @ 3.17g/t Au and 10.88g/t Ag from 234m,

incl. 6m @ 14.06g/t Au and 13.33g/t Ag from 268m

27m @ 1.08g/t Au and 4.09g/t Ag from 129m




1. KSN.ASX announcements 18/2/19, 8/11/18, 23/8/18, 21/5/20

3.5 km


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Quartz Mountain

200koz Resource within a broader gold corridor

Ewatinona drilling program highlights include1

• 20.0m @ 1.81g/t Au from 78m, incl. 3m @ 7.48g/t Au

• 16.0m @ 2.16g/t Au incl. 7m @ 3.83g/t Au from 37m

• 15.7m @ 1.60g/t Au from 40m, incl. 7.0m @ 3.19g/t Au

• 10.2m @ 3.68g/t Au from 10m, incl. 4m @ 7.15g/t Au

• 15.6m @ 1.18g/t Au from 49.6m

• 14.0m @ 1.64g/t Au from 163m

• 13.5m @ 1.26g/t Au, incl. 10.5m @ 1.43g/t Au from 146m

• 12.0m @ 1.33g/t Au from 22m

Significantly enhanced geological understanding

A new and exciting discovery at Abi:

• 23.6m @ 2.91g/t Au from 7.4m incl. 13.5m @ 4.60g/t Au from

17.5m

Drilling planned to follow up initial success at Abi and continue

Resource infill and extensional work at Ewatinona

Quartz Mountain regional gold corridor with historic pits and recent drilling

1. KSN.ASX announcements 26/8/2019, 18/9/2019, 12/02/2020, 02/04/2020, 29/04/2020, 21/5/2020

Quartz Mountain produced

147,000oz @ 1.77g/t Au under Placer


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• Structures with base metal sulphides + Gold-Silver mineralisation

• Steep dipping veins and structures

• Diorite porphyry host rock

• Structures with fracture and crackle breccia halos

• Mosaic and milled breccias

• Late stage reactivation post mineralisation

Mineralisation (Ewatinona)

GDD068 Se-Cly-Py Alt. Dr. Po + CBM Veins (yellow sphalerite) (10.2m @ 3.65g/t Au from 10m)

GDD042 Se-Cly-Py Alt. Dr. Po & Schist + CBM Veins Trans. Ozid. (15.7m @ 1.6g/t Au from 40m)

GDD040 Vert. Hole. Se-Cly-Chl-Py Alt. Dr. Po CBM veining & Fx. fill

GDD066 Oxide. Dr.Po. Mn Oxide fractures (after Sph-Gal) (6m @ 2.46g/t Au from 4 - 10m)

GDD043 Abi-Kila Oxide Dr.Po. Remnant CBM and sulphide veins (23.6m @ 2.91g/t Au from 7.4m, including

13.5m @ 4.60g//t Au from 17.5m)


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• Fundamental model changes 2019-2020

• 27 additional drill holes into parallel structures

and under open pit

• Established firm geology foundation

• MMPL Mapping (Cyre & Dekba)

• Blast hole data modelling

• Mapping (MMPL-WCB-KSN)

• Defined structural architecture based on close

spaced data and mapping

• Leapfrog model of 0.2g/t Au domain to constrain

estimation

• 7.5Mt @ 0.8 g/t Au for 200Koz gold

• Infill and extension drilling planned for 2020-

2021

Ewatinona Resource Geology Model Foundation

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2019-2020 Drilling Coverage

Consolidated structure modelAutomated 0.2g/t Au shell

Automated 0.2g/t Au shell with block model fill


35

Misima Exploration Strategy

• Current 3.0Moz Umuna Resource is open at depth and drill-

constrained

• Exploration focus remains on near-surface mineralisation

• 2020-2021 programs with resource definition focus

Key exploration targets include:

• Quartz Mountain: 200koz Resource at Ewatinona,

mineralisation open at depth and along strike

• Umuna

• Umuna East: ~1.8km strike, evidence of high grade,

shallow mineralisation

• Kulumalia: Oxide extension as cut back to Umuna Pit

• Misima North: >4km untested strike, structural targets

with potential for Umuna repeats MISIMA GOLD PROJECT TARGET AREAS

Recent drilling has successfully targeted shallow

mineralisation across several key prospects


36

Andrew Corbett

Managing Director

Chris Drew

Chief Financial Officer

Stuart Hayward

Chief Geologist

P: +61 2 8021 7492

E: [email protected]

Kingston Resources Limited

Suite 201/110 Pacific Highway,

North Sydney, NSW 2060


Research Coverage

Canaccord Reg Spencer

Acova Capital Michael Evans

Bridge Street CapitalPartners Dr Chris Baker

ASX: KSN

mailto:[email protected]

http://www.kingstonresources.com.au/


37

Appendix: Misima Resource



38

Appendix : Historical Profitable Production, Ultra-Low Costs

• 130-year mining history – gold first discovered in 1889

• Misima open pit operated by Placer Pacific from

1989 to 2001 – closed when the gold price was

below US$300/oz

• Historical production (1989-2004) averaged

230,000ozpa with peak production of

370,000oz in 1992

• Average LOM cash cost US$218/oz, with

91.7% recovery and very low-cost processing2

• Straightforward, well-understood geology and

metallurgy – significantly de-risks future mine

development

1. Placer Annual Reports 1989 to 2004, Placer Archive

2. Kennedy, 1994, AUSIMM, “Misima Mines milling operation: one of the World’s lowest cost conventional gold extraction plants”

3. Wood MacKenzie – Metals Cost League Reporting Tool

Misima statistics from Placer Pacific Annual Reports 1989 – 2004 1

Reserves at end of 1990 1.9Moz

Reserve grade at end of 1990 1.26g/t Au

Grade milled between 1991 and 2004 (inclusive) 1.53g/t Au

Gold produced between 1991 and 2004 (inclusive) 3.3Moz

Grade reconciliation between Reserves and Milled 121%

Production reconciliation compared to 1990 estimate 172%

Average cash cost over LOM US$218/oz

Average price received over LOM US$345/oz

Margin US$128/oz

Margin 37%

0

100

200

300

400

500

600

700

800

0%

5%

10%

15%

20%

25%

30%

34%

39%

44%

49%

54%

59%

64%

69%

73%

78%

83%

88%

93%

98%

1995 Global Cost Curve3

Total Cash Cost AU$/oz

Misima Total Cash Cost ($/oz Au)


39

PAPUA NEW GUINEA:

• Proven geological domain

• Large scale Au + Cu projects

• PNG is currently 15th largest gold

producer globally, 60 tonnes pa

MISIMA:

• Island location, Melanesian culture

• Supportive local landowners

• Today +100 Misima residents

doing FIFO within PNG

• Trained, experienced mine workers

APPROVALS:

• Transparent, stable mining

regulations and approvals process

• Approved as a special mining

lease (SML1)

• Fully rehabilitated and converted

to an EL in 2012

Appendix: Misima Production Advantage

HISTORICAL MINING PARAMETERS:

• < 400m above sea level

• Low strip

• Low cost drill & blast

• Large scale fleet

CURRENT INFRASTRUCTURE:

• Commercial airport, 3 flights per week

• Hospital, schools, housing

• Two ports, deep and shallow water

• Power: hydro-electric and diesel

PROVEN METALLURGY:

• High recovery

• Free mill + coarse grind

• Low bond work index

• Low cost processing

misima gold project past, present and future...mmpl operational process plant & port maika...

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