Kingsrose pours first gold/silver from Sumatra project
Friday, August 13 2010 - 02:22 AM WIB
The four bars of dore weighing a total of 5.9kg (a mix of gold and silver) represent the culmination of a 12 month mine development and plant construction phase costing US$12 million, the company said in statement of Friday.
Annual output is expected to be at an initial rate of 45,000 ounces of gold at a cash cost of $147 an ounce which is more than $1000 per ounce lower than the current world gold price, it said
?It?s an old saying in mining that grade is king and Way Linggo is the latest example of how important high-grade ore is to the financial success of a mine,? executive chairman of Kingsrose, John Morris Morris said.
At Way Linggo there is currently 25,700 tons of ore stockpiled on the surface ready for processing. The ore assays 18.3 grams of gold per ton, plus 214 grams of silver which is the equivalent of 3.65 grams of gold. This ore has been extracted as part of development mining and comes from the previously reported JORC compliant measured and indicated resource.
?Now that we?ve started gold production we can steadily ramp up to the initial target of 45,000 ounces a year, while also planning for future expansion. Cashflow from the mine will also enable us to expand exploration efforts in, and around the mine,? Morris said. (kanti)