Kingrose to resume Talang Santo operation this April
Thursday, March 14 2013 - 10:11 AM WIB
ASX-listed Kingrose Mining Limited recently stated it will resume full mining activities at Talang Santo, part of its Way Linggo Project, in April, having its 85 percent owned subsidiary PT Natarang Mining complied with requirements advised by the Indonesian Mines Department.
An updated Way Linggo Project mine development plan to include Talang Santo was first submitted to the Indonesian Mines Department for review in January 2013. Further requests require revisions to the mining schedule, emergency evacuation plans and secondary egress. The final updated project mine development plan has since been submitted and the company has been advised that it will make its final presentation of this plan in the last week of March.
Exploration development commenced in the area where historical exploration drilling returned a high-grade silver result. The drilling was conducted in 1994 by PT Natarang Mining and returned a high grade silver intercept from drill hole DDH-LLOS of 1.0m grading 2.05 g/t gold and 3,390 g/t silver from 163.0 meters downhole.
Recent development of the 4 Level in the vicinity of this historic drill result has enabled access for exploration development into this area. This is aimed at confirming the existence of a high-grade silver vein and determining the geometry of the vein, which wilt enable the targeting of further exploration drilling.
Even so, the company said that further remnant mining and pillar recovery in the upper levels increases the risk of ground collapses once these areas are mined out completely and could potentially restrict access and ventilation to the high silver vein area. "As remnant mining and removal of pillars has occurred, it has become evident that ground conditions are not as robust in these areas as anticipated," the company said in a statement to the ASX on Thursday.
As a result of the review, it decided to suspend remnant mining and pillar recovery above 3 Level until the high silver vein has been explored further and additional geotechnical investigations can be completed. As a result, mining rates will decrease with mining activities now primarily consisting of development in the lower grade Level 4 area and the high-grade silver vein. Cost reduction measures have also continued with the number of personnel falling by 174.
Initial exploration development consisting of an 8m winze has successfully confirmed the existence of the silver vein with all face sampling results, ranged from 1.9Dm @ 0.15g/t Au & 198.46g/t Ag to 0.60m @ 430g/t Au & 6,271 g/t Ag.
"These results are significant as they highlight the potential for a new epithermal vein system and potentially a new ore body. Given the delays to the resumption of mining at Talang Santo and the reduced rate of mining at the Way Linggo mine, the forecast of gold production for the financial year ending 30 June ?2013 will be materially lower than previous guidance," the company said, adding that an updated estimate is currently being calculated.
Editing by Er Audy Zandri