The PNG government has been seeking prospective partners for the project, which it says produced more than 1 million ounces alluvial gold from panning by locals between 1988 and 1991.
The project was previously held by Toronto Stock Exchange-listed Buffalo Gold, in a joint venture with Madison Resources, which lost control of the property in 2008 after running short of money during the global financial crisis and failed to come to agreement with local landowners over historical compensation payments and other longstanding issues.
Buffalo released a NI 43-101 compliant mineral resource estimate in 2007, putting indicated resources at Mt Kare at 743,000 ounces at 5.04 grams per tonne gold and 25.3gpt silver at a 3.0gpt gold equivalent cut-off in the indicated category.
The PNG Investment Promotion Authority has said it is seeking an investment partner to take up to a 60% stake in a joint venture for the project, projecting a total short-term investment of around $US20 million.
Kingsgate said in a statement this afternoon the PNG government is currently "finalising its preferred longer term intentions" for Mt Kare, with a decision expected by the end of the year.