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Msima gold project, Papua New Guinea – update

Image of gold nuggets

Photo by Bloomberg

26th August 2022

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Msima gold project.

Location
Misima Island, 625 km east of Port Moresby in the Solomon Sea, Papua New Guinea.

Project Owner/s
Kingston Resources.

Project Description
A definitive feasibility study completed on the project in June 2022 has confirmed the potential to develop a large-scale, long-life, low-cost operation delivering gold production of 2.4-million ounces and silver production of 5.6-million ounces of silver over 20 years.

The DFS is based on the redevelopment of the brownfields site of the former Misima gold mine, which was previously operated as a successful 5.5-million-tonne-a-year carbon-in-leach (CIL) openpit operation.

The DFS envisages the construction of a new 6.1-million-tonne-a-year CIL treatment facility and modern infrastructure on the footprint of the historic mine, establishing a new standalone, long-life gold mining and processing operation. The operation will be underpinned by two major ore sources – a cutback of the existing Umuna openpit and an expansion of the existing small pit at Ewatinona, in the Quartz Mountain area.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$956-million and an internal rate of return of 22.2%, with a payback of 5.75 years.

Capital Expenditure
A$476-million.

Planned Start/End Date
Not stated.

Latest Developments
Kingston Resources has confirmed that the divestment of its Misima gold project is one of the avenues being investigated in the review of the asset to assess options to maximise shareholder value, which was announced earlier this year.

A range of potential financing and ownership options is being reviewed, which could include an asset sale.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Kingston Resources, tel +61 2 8021 7492 or email info@kingstonresources.com.au.

Edited by Creamer Media Reporter

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