Kingsgate Consolidated Limited has launched its first drilling program in nearly a decade at the Nueva Esperanza silver-gold project in Chile, completing the initial hole at the Teterita deposit with more than 99% core recovery.

The current campaign comprises nine holes totaling 1,100 metres of PQ3 drill core across the project's three major deposits: Arqueros, Chimberos, and Teterita. Core from the first hole has been sent to Veracio in Santiago for hyperspectral and XRF scanning.

The drilling is part of a broader technical push to collect representative samples for updated comminution and heap leach testwork using new technologies, designed to reassess assumptions from previous pre-feasibility studies. Jill Terry, General Manager Technical — Nueva Esperanza, is leading the workstreams and has appointed three Chilean geologists and field staff on a contract basis to support the campaign, which is expected to conclude next quarter.

Water infrastructure development has also advanced at the site, with two water bores now fully equipped with pumping and monitoring systems installed and operational.

Kingsgate previously acquired royalty and water rights for the project from Inversiones Anglo American Norte SpA in May 2026, eliminating future pre-production royalties of US$2.0 million per annum and removing 5% NSR and 3% NSR royalties over Esperanza and Arqueros. Cube Consulting has been engaged to update the Mineral Resources and Ore Reserves estimates for the project, incorporating increased silver and gold price assumptions alongside the reduced royalty considerations. The updated resource and reserve estimates are scheduled for publication later this month.

Reflecting the company's increasing operational focus, Bronwyn Parry has been appointed Executive General Manager, Chile, following four months of actively advancing the asset.

“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.” 

— Jamie Gibson, Managing Director and CEO

Read the full announcement: Nueva Esperanza Project Update