Kingsrose Mining upgrades Talang Santo deposits
Tuesday, September 4 2012 - 04:33 AM WIB
Australian mining company Kingsrose Mining Ltd announced Tuesday that its exploration drilling has continued to extend and upgrade the Talang Santo Prospect in Sumatra.
The company said in a statement that latest total JORC-compliant Mineral Resource estimate (as at June 30, 2012) for Talang Santo increased by 73 percent to 287,489 ounces of gold and 894,951 ounces of silver. Furthermore, over 59 percent of this has now been upgraded into the Indicated category.
The June 30, 2012 total Mineral Resource for the Way Linggo mine including depletion from mining and an allowance for non-recoverable blocks contains 198,380 ounces of gold and 2,288,326 ounces of silver, the statement added.
The total Project ounces have increased by 25 percent to 485,869 ounces of gold and 3,183,278 ounces of silver as at 30 June, 2012 . The Mineral Resource (as at 30 June, 2012 ) by category is summarized below:
Since the virgin discovery of Talang Santo (7km due north of Way Linggo) in June 2011, Kingsrose has worked swiftly to bring the project into production with the development of a shaft, construction of an adit and development of 2 level at Talang Santo. Production of development ore for processing at the Way Linggo plant commenced in June this year. The Way Linggo mine has entered a phase of lower monthly production as pillar recovery, stope filling and accessing of deeper lower grade zones commences.
The increasing production at Talang Santo is expected to more than offset reductions in the tonnages from the more mature Way Linggo mine. As a result, Kingsrose remains on track to meet its production target of more than 40,000oz of gold this financial year.
The transition from shaft development to ore development and storing at Talang Santo has encountered minor delays creating a situation where ore production in the current quarter has been impacted. The coincidence of this delay and the mining of lower grade development ore on the 4 level at Way Linggo means total gold production in the September Quarter is expected to be 5,000 oz. Silver production is expected to be in excess of 50,000oz.
However, production is forecast to ramp up in subsequent quarters as the large amount of development and preparation over the past nine months enables Kingsrose to increase mined tonnages and to access higher grade ore. Hence, Kingsrose believes it remains on track for its annual target of more than 40,000oz of gold and 250,000oz of silver.
Editing by Reiner Simanjuntak