New resource for Kingsrose

KINGSROSE Mining has released a maiden resource for its new discovery and proposed a second gold-silver mine Talang Santo in Indonesia.
New resource for Kingsrose New resource for Kingsrose New resource for Kingsrose New resource for Kingsrose New resource for Kingsrose

The inferred resource for Talang Santo is 879,000 tonnes at 5.89 grams per tonne gold and 14.63gpt silver - or 6.22gpt gold equivalent - for 166,400 ounces of gold and 413,000oz silver, or 175,735oz gold equivalent, based on a 2.5gpt cut-off grade and a top-cut of 30gpt gold and 35gpt silver.

The deposit remains open along strike and at depth, with six drill rigs onsite for further testing.

The maiden resource has increased the total resource for the Way Linggo project to 1.58 million tonnes at 7.89gpt gold and 68.66gpt silver for 396,430oz gold and 3.5 million ounces of silver.

Kingsrose managing director Chris Start said the maiden resource was a great result for the company.

"Talang Santo is a new virgin discovery and will become a second mine for the company," he said.

"To reach this point only nine months after the first drilling at the prospect is a great achievement."

The company said the most effective way to validate the results and confirm grades was by trial mining, given the fractured nature of the epithermal veins.

"I am also pleased to advise that in keeping with the group's ability to develop small mines, an exploration audit has been established and the cross-cut is expected to hit the upper levels of the ore in about a week," Start said.

"The civils and headframe for an underlay shaft is now also established and shaft sinking has commenced.

"We expect the trial mining will rapidly progress to a second mining centre feeding ore to our Way Linggo plant approximately 7km due south."

At the end of the September quarter, the Way Linggo mine had produced 45,773oz gold equivalent at cash costs of $US145 per ounce since it was commissioned in August last year.

Kingsrose was recently awarded Best Producer of 2011 at the RESOURCESTOCKS Best of the Best Awards 2011.


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