Kingsgate Breaks Nine-Year Drilling Silence at Major Chile Silver Project
Key Takeaways
- Kingsgate has commenced its first drilling campaign at Nueva Esperanza in almost nine years, with the first hole at Teterita achieving over 99% core recovery across a 9-hole, 1,100m PQ3 program.
- A Mineral Resource and Ore Reserve update prepared by Cube Consulting is scheduled for publication later this month (September 2026), incorporating higher silver and gold price assumptions and reduced royalties following the Anglo American royalty purchase on 14 May 2026.
- Both of the project's water bores are now fully equipped and operational, removing a foundational infrastructure risk ahead of any future construction decision.
- The drilling campaign's primary purpose is to collect samples for updated heap-leach testwork using new technologies — results that will directly shape processing design and development economics.
- Bronwyn Parry has been appointed Executive General Manager, Chile, signalling a deliberate step-up in management focus and resourcing at Nueva Esperanza.
Kingsgate breaks nine-year drilling silence at Nueva Esperanza
Kingsgate Consolidated has commenced its first drilling campaign at the Nueva Esperanza Silver-Gold Project in Chile in almost a decade, as the company progresses the next phase of project evaluation. The move signals renewed operational momentum at one of South America’s largest undeveloped silver projects.
The first drill hole has been completed at the Teterita deposit, achieving more than 99% core recovery. The full campaign comprises 9 holes for a total of 1,100m of PQ3 drill core across the project’s three major deposits: Arqueros, Chimberos, and Teterita. Core has been delivered to Veracio in Santiago for hyperspectral and XRF scanning.
Jamie Gibson, Managing Director and CEO
“This is a significant milestone for the project, with the first drilling campaign at Nueva Esperanza in almost a decade commencing. We are excited by the momentum on site at one of South America’s largest undeveloped silver projects.”
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What’s happening on the ground at Nueva Esperanza
Multiple workstreams are advancing in parallel, spanning drilling, water infrastructure, and team buildout.
Metallurgical drilling campaign
The campaign’s primary purpose is to collect representative samples from each of the three deposits for updated comminution and heap leach testwork using new technologies. The testwork is an important component of the broader technical programme to reassess the assumptions underpinning previous pre-feasibility studies. Results will be used to optimise the potential application of heap-leach processing. The campaign is expected to conclude next quarter.
Water infrastructure
Both of the project’s two water bores are now fully equipped, with all associated pumping and monitoring infrastructure successfully installed and operational. Completing this water infrastructure removes a foundational development risk, giving the project a verified water supply ahead of any future construction decision.
Team reinforced for accelerating workload
The on-site team has been expanded to match the project’s increasing activity:
- Jill Terry, General Manager Technical – Nueva Esperanza, continues to lead the project’s technical workstreams
- Three Chilean geologists and field staff have been appointed on a contract basis to support the metallurgical drilling campaign
- Bronwyn Parry has been appointed Executive General Manager, Chile, reflecting the company’s increasing focus on Nueva Esperanza and its commitment to accelerating the next phase of work
What is heap-leach processing and why does it matter here?
Heap-leach processing is a method of extracting metals from ore by stacking crushed material on a lined pad and applying a chemical solution (typically a cyanide or acid solution) that dissolves the target metals as it percolates through the heap. The metal-bearing solution is then collected and processed to recover the silver or gold. It is widely used for lower-grade precious metal deposits because it is generally less capital-intensive than conventional milling and has a simpler processing flowsheet.
For a project like Nueva Esperanza, validating heap-leach as a viable processing route is a critical step. If updated testwork using new technologies confirms favourable recoveries, it could materially reduce the capital cost profile of the project and improve the economics relative to previous pre-feasibility studies. That is precisely why Kingsgate is running this specific drilling campaign now: the testwork results will directly shape the project’s processing design and, ultimately, its development economics.
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Mineral resource update and what comes next
Cube Consulting has been engaged and is currently updating the Mineral Resources and Ore Reserves estimates for the Nueva Esperanza Project. The updated estimate is scheduled for publication later this month (September 2026) and will incorporate increased silver and gold price assumptions since the last update in October 2025. It will also reflect reduced royalty considerations following the Anglo American royalty purchase announced on 14 May 2026.
The table below summarises the key near-term milestones across the project:
| Workstream | Status | Expected Timing | Key Detail | Significance |
|---|---|---|---|---|
| Mineral Resource & Ore Reserve update | In progress | Later this month (September 2026) | Incorporates higher silver/gold price assumptions since October 2025 update; reflects reduced royalty considerations following Anglo American royalty purchase (14 May 2026) | Likely to show materially improved project economics |
| Metallurgical drilling campaign | Underway | Expected to conclude Q2 FY27 (Oct–Dec 2026) | 9 holes / 1,100m across three deposits (Arqueros, Chimberos, Teterita) | Testwork results to inform heap-leach design |
| Water infrastructure | Complete | Operational now | Two bores equipped with pumping and monitoring systems | Key development enabler |
Multiple near-term catalysts are converging at Nueva Esperanza: an imminent resource and reserve update, active drilling underway for the first time in almost a decade, and a reinforced on-site team. Taken together, these workstreams position the project as an advancing development asset rather than a dormant one, with meaningful newsflow expected across the coming quarter.
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