Kingsrose exits Australia project to focus on Sumatra gold

Australian mining firm Kingsrose Mining Limited has decided to exit Comet Vale gold project in Western Australia to focus on its Indonesia gold project.

Under the deal with its JV partner Reed Resources Kingsrose will receive A$4 million in cash and shares until June 2010.

As a result of a strategic review?.. it is in the best interest of shareholders to exit from Comet Vale to allow management and resources to be focussed on the Way Linggo Gold Project in Sumatra, which is showing all the signs of developing into a first class, highly profitable gold operation,? the company said.

The Way Linggo project is expected to produce approximately 45,000 gold ounces and around 500,000 silver ounces on an annualized basis. The target date for commissioning of the process plant is anticipated to be towards the end of the first quarter of 2010, the company in July 2009. (denny)