The initial diamond hole punched into the Pearse North deposit has delivered an impressive 39m at 4.2 grams per tonne gold and 37gpt silver from 37m, including 3m at 26.7gpt gold and 27gpt silver.
The company said the drilling had confirmed the high-grade tenor of the Pearse North deposit and indicated potential for significant mineralisation outside the current reserve pit shell, which was defined by prior owners at a US$1300/oz gold price.
Attention has now shifted to extensional and infill RC drilling at Pearse North, while the diamond drillbit is focused at the SOZ underground copper-gold deposit, targeting the upper A-Lode.
More assays are expected in May.
The drilling is aimed at allowing remodelling of the orebody and deliver of an update to the project's current resources of 71,000oz gold at 1.41gpt and 346,000oz at 71gpt silver.
Toward the second half of the program, holes will be drilled in the Jacks Hut and Missing Link prospects.
There has been no significant exploration of the area since the 1990s.
Kingston has been developing its flagship 3.8Moz Misima gold project in Papua New Guinea since 2017, but while it advanced a definitive feasibility study it last year, it took the opportunity to secure Mineral Hill for up to A$23 million from Quintana, the largest creditor of the mine's former owner, KBL Mining, which collapsed in 2015 due to high debt levels.
Mineral Hill is currently producing from tailings via the existing plant, and positive variances on both tonnes and grade compared to the resource model have been reported over the past few months.
It hopes to produce an average 50,000 ounces of gold equivalent per annum over five years at all-in sustaining costs of $1550-1650/oz.
The company raised $18 million at 20c to complete the immediate cash component of the purchase last November.
The open pit mine, 400,000tpa CIL plant, and 350,000tpa flotation circuit historically recovered 396,000oz of gold and 33,000t of copper.
Kingston shares, which have traded between 14c and 25c over the past year, were up 9% this morning at 18.5c, valuing it at $70 million.
