KINGSTON RESOURCESLIMITED
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ASX Announcement 21 December 2016
ASX Code: KSN
Share Price: A$0.019
Shares Outstanding: 660,269,985 Market Capitalisation: A$12.5m Cash: A$5.4m (September 30)
ACN 009 148 529
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Board and Management Anthony Wehby
Chairman
Andrew Corbett
Managing Director
Andrew Paterson
Chief Geological Officer
Stuart Rechner
Non-Executive Director
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Contact Details
3 Spring Street, Sydney,
NSW 2000
+61 2 8249 4968
[email protected]www.kingstonresources.com.au
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Livingstone acquisition complete, initial rock chip results encouraging
Highlights
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Highly encouraging initial grab samples up to 75g/t Au at the Livingstone Find prospect
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Initial drill program submitted for approval, with focus on
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Homestead, JORC2004 inferred gold resource of 49,900 oz
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Winja, high grade zone which returned 18m @ 7.85 g/t
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Tenement E52/3403 granted on 30 November
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Kingston now holds a 12-month option to acquire 75% of Livingstone Gold Project
Kingston Resources Limited (ASX:KSN) (the Company or Kingston) is pleased to announce that the acquisition of an option over the Livingstone Gold Project (Figure 4) is complete. In addition, the tenement has now been granted, a first stage drill program has been submitted for approval and Kingston has received very encouraging results from initial grab samples taken from two lines of old workings at Livingstone's Find.
Livingston acquisition complete
The Company has now reached agreement with Trillbar Resources Pty Ltd on all terms relating to the exploration option and potential future development of the Livingstone Gold Project.
As consideration for the completion of the option agreement Kingston will issue the Vendors
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5.5 million shares (4-month escrow) in KSN, and
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5 million options in KSN, exercisable at $0.025 within three years of issue
"With the completion of the Livingstone agreement and extremely encouraging grab samples we are excited to be moving rapidly through the drilling approvals process. Historical work in the area has allowed our exploration team to develop a focused first round campaign. The high-grade nature of both the historical drilling and recent grab samples underpins the exploration potential we see at Livingstone" commented Managing Director, Andrew Corbett.
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Initial rock chip results
A recent site visit by Kingston personnel included reconnaissance of the Homestead, Winja and Livingstone's Find areas. Grab samples were taken from two lines of old workings at Livingstone's Find known as Mt Seabrook 1 and Mt Seabrook 2 (Figure 1 + 2). These samples returned gold values as high as 75g/t Au, confirming the presence of high-grade gold mineralisation in the east-west structure previously exploited by the old workings.
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Sample ID
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Easting
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Northing
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Au g/t
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KWR0062
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567113
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7170930
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2.3
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KWR0064
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567124
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7170923
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1.49
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KWR0067
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567141
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7170917
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75.65
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KWR0069
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567156
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7170913
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1.99
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KWR0073
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567198
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7170891
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8.71
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KWR0074
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567198
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7170891
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9.47
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KWR0076
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567223
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7170883
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7.65
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KWR0078
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567248
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7170875
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8.17
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KWR0080
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567605
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7170841
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11.09
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KWR0082
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567647
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7170846
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39.24
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KWR0083
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567682
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7170840
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2.99
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All coordinates are in GDA94 Zone 50
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Table 1: Mt Seabrook 1 + 2 selected grab samples
Figure 1: Old workings at Mt Seabrook 2 (LH) and Livingstone North (RH)
Next steps
The Company has lodged a Program of Work (PoW) application with the Department of Mines and Petroleum (DMP) to commence drilling at Homestead and Winja in Q1 2017. Initial drilling is intended to test the high-grade chute structures at both prospects. Additional exploration at Livingstone's Find (Figure 3) is expected to commence later in H1 2017.
Figure 2: Grab sample results at Livingstone's Find
Figure 3: Sample locations and old workings mapped by KSN.
Figure 4: Livingstone Gold Project over plan, 150 km NW of Meekatharra.
Summary of Livingstone Option Agreement
Kingston has entered into a 12-month option agreement with Trillbar Resources Pty Ltd to purchase a 75% interest in E52/3403
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The 12-month option period commences from the date of grant of E52/3403.
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To purchase the option Kingston will pay the Vendors 5.5 million shares (restricted) in KSN and 5 million options in KSN, exercisable at $0.025 within three years of issue.
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Kingston will commit to a minimum $200,000 exploration expenditure on the tenement.
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If it chooses to exercise the option, Kingston will pay the Vendors $300,000 in KSN shares, issued at a 10% discount to the 20 day VWAP prior to exercise.
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The Vendors will retain a 25% interest in E52/3403 which will be free carried until a decision to mine is made over a defined mining area. If the Vendors choose not to contribute to expenditure beyond the decision to mine they will be diluted according to standard dilution practices. If the Vendors dilute to a less than 5% interest, then a 1.25% gross royalty is to be paid.