KINGSTON RESOURCES LIMITED
ASX Announcement 31 October 2016
ASX Code: KSN
Share Price: A$0.019
Shares Outstanding: 660,269,985 Market Capitalisation: A$12.5 m Cash (at Sept 30): A$5.4m
ACN 009 148 529
Quarterly Activities Report
For the quarter ending 30 September 2016
Highlights
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Completion of $6.85m capital raising, acquisition of lithium exploration assets, and new senior board and management appointments.
Board and Management Anthony Wehby
Chairman
Andrew Corbett
Managing Director
Andrew Paterson
Chief Geological Director
Stuart Rechner
Non-Executive Director
Yafeng Cai
Non-Executive Director
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Grant of eight Bynoe exploration tenements and one additional application.
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Advancing key lithium exploration projects at Mt Cattlin and Bynoe, with successful initial field work
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The Company is actively considering opportunities to participate in further exploration activities for both lithium and other minerals.
Contact Details
3 Spring Street, Sydney,
NSW 2000
+61 2 8249 4968
[email protected]uwww.kingstonresources.com.au
Following the completion of its capital raising and lithium acquisition on 4 July 2016, Kingston has rapidly commenced its exploration programme with fieldwork at both the Mt Cattlin and Bynoe projects. Successful initial fieldwork at Mt Cattlin has delivered a number of high grade rock chip results and identified two parallel soil anomalies. These will form the targets for the company's initial drill program for which the approvals process is underway. KSN's first two Bynoe tenements were granted late August, with an initial fieldwork program taking place in September.
In the current quarter, Kingston expects to conclude its approvals process for Mt Cattlin drilling and advance the Bynoe Lithium Project fieldwork. KSN expects to have its Bynoe project drill ready for the completion of the wet season.
The Company held $5.4m in cash at the end of the quarter allowing it to progress work simultaneously on all of its primary exploration targets and to continue to assess opportunities to grow shareholder value.
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Kingston MD Andrew Corbett says "The recent quarter was a very encouraging start for Kingston as it embarks on its revitalised strategy following the successful capital raising and acquisition of lithium assets. We are excited by the potential of our lithium exploration portfolio and look forward to continuing to rapidly advance these projects over the coming months."
Summary of September quarter activities
Capital raising, lithium acquisition and new senior management appointments (refer ASX Announcement 5 July 2016): Following the passing of all resolutions at the 4 July 2016 EGM Kingston completed the second tranche of its $6.85m capital raising, and completed its lithium project acquisition. This introduced an exciting portfolio of lithium exploration assets covering four key project areas: Mt Cattlin, Greenbushes, Bynoe/Wingate, and Arunta. Management and board changes were also approved, including the appointment of Anthony Wehby as Chairman, Andrew Corbett as Managing Director, and Andrew Paterson as Chief Geological Officer.
Mt Cattlin Project Kingston has successfully completed initial fieldwork at its Mt Cattlin Project. Key results included a number of high grade rock chips samples including (refer ASX announcement 13 July 2016)
o Sample #5043 3.23% Li2O o Sample #5044 0.73% Li2O o Sample #5045 2.76% Li2O o Sample #5047 2.67% Li2O
These results conform with prior sampling by Galaxy which yielded samples containing up to 4.48%* Li2O.
A follow up soil sampling program confirmed the scale of the Deep Purple South anomaly at over 600m long, with a second parallel anomaly 350m long (Figure 1). A previously unidentified 600m long soil anomaly was also identified 2km south of Deep Purple South. (refer ASX Announcement 23 August 2016).
Kingston expects to conduct infill soil sampling work in the near term to further refine targets following its initially successful programme. Approvals for drilling at Deep Purple South are anticipated in the coming months which will allow drilling to commence shortly thereafter.
Phase 1 drilling will be in the order of 1500- 2000 drill metres. Concurrent with this first stage of drilling, Kingston expects to seek approvals for a second stage drilling program which, dependent on the ongoing fieldwork, may extend beyond the initial Deep Purple South targets.
Figure 1: Deep Purple South Initial Exploration target area.
Bynoe Project: Bynoe represents a strategically important project for the Company due its significant infrastructure advantage combined with the geological potential within the Bynoe Pegmatite field. The Company notes there are currently two peers, Liontown Resources (ASX.LTR) and Core Exploration (ASX.CXO) both drilling on neighbouring tenements delivering significant success. (figure 2)
Figure 2 Kingston Bynoe project - location and major peer group*
* Note: Tenement outlines are sourced from the NT DME Strike web platform. Individual tenement ownership is attributed based upon ASX announcements by the respective listed entities.
Fieldwork commenced on EL31091 and EL31092 which were granted late August. During September, a further six tenements were granted and one new application made, ELA 31419. The priority of current work is to refine field targets for drilling approval applications during the current quarter. Drilling at the Bynoe Project is anticipated by Q2 2017 following the conclusion of the upcoming wet season.
With the granting of the Bynoe tenements Kingston commenced a geochemical field program with the early stage work providing encouraging results. Initial focus has been on EL31091, EL31092, EL31133 and EL31151 and at historical tin-tantalum prospects Jennys (EL31092), Liana, Ah Bung, Kellys East (EL31091) and Jans (EL31151). Kingston expects to continue identifying areas of interest with ongoing geochemical work and follow up with regional geophysical surveys. During the current quarter the Company will provide a detailed update on priority targets and drilling approvals.
About Kingston Resources
Kingston Resources is a metals exploration company. The Company holds an attractive portfolio of lithium exploration tenements covering four key project areas. In Western Australia, the Mt Cattlin and Greenbushes projects are adjacent or near existing lithium mines. In the Northern Territory, the Bynoe project area is home to some exciting new discoveries and the Arunta project lies within a significant pegmatite field. The Company is well funded to rapidly advance its exploration projects, with the initial focus being the Mt Cattlin, Bynoe, and Arunta lithium projects.
*Galaxy Resources Ltd E74/287 (Mt Cattlin Project) Relinquishment Report 2012
Competent Persons Statement
The information in this report that relates to Exploration Results, Minerals Resources or Reserves is based on information compiled by Mr. Andrew Paterson, who is a member of the Australian Institute of Geoscientists. Mr. Paterson is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking 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" (JORC Code). Mr. Paterson consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears.