Kingsrose: Ramp up activities at Talang Santo progressing

By Romel S. Gurky

ASX-listed Kingsrose Mining Limited provided Monday the following update statement in relation to the progress of the company?s ongoing ramp up activities at the Talang Santo mine on the Way Linggo project in South Sumatra.

The proceeds of the first shipment of dore from site have now been received and a second shipment of approximately 2,200 ounces of gold and 7,344 ounces of silver was shipped on 31 August 2014 (subject to final assay at the refinery). The company?s current cash balance and bullion on hand stands at A$8.62 million.

Mining
Kingsrose said that operations at the Talang Santo mine continue to focus on the setup of additional sub levels and rises required to commence stoping.

Since receipt of the final approval to commence production seven weeks ago, the number of working faces in the mine has increased from 9 to 17 with a total of 23 working areas targeted to support the tonnage required to meet the current mill capacity.

Progress of the work being undertaken on both the 2 and 3 Levels in the Hanging wall and Mawi veins, and the Splay vein off the 3 Level. These activities are progressing well, and it is expected that room and pillar stoping will commence during September.

Sinking of the internal shaft to access the 4 Level has commenced and has advanced approximately 10 vertical meters to date.

Exploration development of the Splay vein on the 3 Level continues with narrow high grade veining between 0.5 - 1.0 meter continuing a further 60 meters since last update.

Processing
The plant ran for a full month in August, at an average throughput of 320 tons per day. This will continue to increase to capacity over the coming months as mine production increases.

The average head grade for the month was an estimated 10.2 g/t Au and 32 g/t Ag, with material currently being sourced from 17 headings, which includes lower grade development ore from continued exploration on the narrower sections of the Splay vein and setup for stoping. Head grades are expected to increase once stoping commences

Encouragingly, as throughput has been increased, metallurgical recoveries have remained at 97 percent for gold and 92 percent for silver, both above expectations.

A planned three day shutdown of the plant will occur at the start of September to complete a scheduled reline of the SAG mill and complete detailed inspections of the plant following the first period of continuous operation since mid-2012.

Talang Samin exploration shaft
Development at Talang Samin is underway to access the mineralized veining identified by previous drilling with a total of 28 meters of lateral development completed on the 1 Level by the end of August, ended the update statement.

Editing by Reiner Simanjuntak