Touted as one of the largest undeveloped copper-gold deposits in the world with a measured and indicated equivalent copper-gold resource of 791.5 million tonnes at 0.815 grams per tonne gold equivalent for 20.7 million equivalent ounces, and a further 2.75Moz of gold equivalent in the inferred category, King-king is now owned by CGA spin-off Ratel Gold after it struck a strategic alliance with owner US-based Russell Mining & Minerals Inc.
Ratel acquired a 60% interest in the property from Russell Mining for 80 million shares, as well as the issue of a further 75 million shares at the completion of a feasibility study.
Russell Mining, in coordination with local partner Nationwide Development Corporation (Nadecor), was earning its stake in the project in return for funding and preparing a feasibility study, which was estimated to cost $US43.5 million ($A43.86 million), and by paying Nadecor $US7.5 million and funding the first $US12.8 million of Nadecor's ultimate 40% contribution towards development costs.
Ratel also intends to spin off its existing African interests into a new float.
The latest quarter was again one of records for CGA with 48,373oz of gold produced from its Masbate mine at a cash operating cost of $US587/oz, compared to production of 43,390oz at costs of $596/oz in the June quarter.
A total of 1.19Mt of ore was mined at an average head grade of 1.21gpt gold, with mill throughput of 1.44Mt a new quarterly record. The previous rate was 1.34Mt in June.
Cash and liquid assets at the end of the quarter stood at $US125.6 million, after a loan repayment of $US4.3 million. The outstanding project finance facility now stands at $59.8 million.
Shares in CGA were up 6.59% in morning trade to $2.75.