Kingsrose: Forestry, AMDAL permits for Talang Santo mine expected in April
Thursday, January 16 2014 - 02:58 AM WIB
ASX-listed Kingsrose Mining Limited said it expected to obtain the so-called ?borrow and use? forestry permit and the AMDAL environmental permit for its Talang Santo mine in southern Sumatra by April of this year.
In an update statement on the Talang Santo mine, the company?s second mine located on its 85 percent owned Way Linggo gold project in southern Sumatra, issued Thursday, Kingsrose said limited mining activities had been conducted at the mine.
The company late last year requested for full mine activities, but the Indonesian government only granted for limited mine development until the two aforementioned permits have been obtained.
?To date, mine development has been undertaken on a limited basis, following approval of the technical and economic components of an updated Project feasibility report in June 2013. This work has been carried out in line with guidance provided to the company?s 85 percent owned Indonesian subsidiary, PT Natarang Mining (PTNM) that it could undertake limited development activities,? it said.
As a result of these delays in full mining activities, Kingsrose said it will not meet its current production guidance of 20,000ozs of gold for the financial year ending 30 June 2014. It is anticipated that the company will be in a position to provide a guidance update by the end of the March 2014 quarter.
Elsewhere, the company said Talang Santo Mine Development Work Completed to Date Approximately 1,000m of lateral and vertical mine development had been completed by 31st December 2013, with more recent work being completed on the 3 Level with a focus on the establishment of the mine infrastructure required for haulage, pumping and secondary egresses.
The installed capacity for the shaft is capable of hoisting 2.5 ton skips allowing 500 tons per day hoist capacity. As part of this 3 Level development , the orebody has been driven on the Mawi vein and the Hanging wall vein has been intersected by a number of cross cuts with a number of high grade traverses exposed.
Diamond drilling has been undertaken from the 3 Level with a previously interpreted splay vein of banded quartz intersecting 3 m @ 14.74 g/t Au and 101.74 g/t Ag, in UDH‐041. This is significant as the vein lies immediately adjacent to, and is distinct from, the currently exposed orebody.
Importantly, development work completed to date puts the company in a position to transition to full production once final approval is received.
The company has agreed with Advanced Concept Holdings Ltd to defer commencement of repayment of the US$5million loan outstanding from January 2014 to July 2014. The interest rate payable has been increased by 2% p.a.
In addition, the company has also agreed with Beaurama Pty Ltd to defer commencement of repayment of the A$5million loan outstanding from January 2014 to July 2014. The interest rate payable has been increased by 2% p.a.
The company currently has just under $3m cash on hand and is expecting receipt of an income tax refund of approximately US$6million between now and May 2014.
Editing By Reiner Simanjuntak