Kingsrose reports lower gold output at Talang Santo mine
Friday, October 23 2015 - 02:01 AM WIB
ASX-listed Kingsrose Mining Ltd reported that gold production at its Talang Santo mine in South Sumatra in the third quarter of this year declined by 30.42 percent to 4,010 ounces from 5,763 ounces in the second quarter.
The company said in a statement Friday that silver production during the quarter reached 9,815 ounces, lower than 10,433 ounces in the previous quarter.
?During the (third) quarter, the company sold 4,404 ounces of gold at an average gold price of A$1,526 and realized A$6,718,547 in revenue,? Kingsrose said.
The company said cash costs of production for the quarter were US$920/oz and all-in sustaining costs of production for the period were US$1580/oz.
The firm explained that the cash costs of production for the quarter was impacted by an increase in fuel costs associated with pumping from the Talang Santo Mine. The all-in sustaining costs of production for the period were US$1,580/oz which included US$456/oz of sustaining capital relating to the company?s ongoing investment in mine infrastructure.
It said the key capital items during the period included the continued development of the 5 Level Shaft, the purchase of additional pumps and the purchase of a new generator to provide additional support for pumping infrastructure.
Meanwhile, a significant upgrade of the Talang Santo Mineral Resource was reported during the period with an additional 39 drill holes and over 3,200 development face samples supporting the increase, Kingsrose said. The total Mineral Resource for the Talang Santo deposit as at June 30, 2015 was 1.4 million tonnes @ 8 g/t Au and 22 g/t Ag for 360,000 ounces of gold and 1,012,000 ounces of silver.
This represented a 27 percent increase in contained gold, with an additional 77,000 ounces of gold over the 2012 Talang Santo Mineral Resource after allowing for depletion by mining.
Kingsrose said the opportunity to upgrade the remaining Inferred Resource of 739,000 tons at a grade of 5.23 g/t Au through further diamond drilling from the 5 Level remains high, and there remains significant potential for additional grade upside with further drilling and mine development with the orebody remaining open at depth and along strike.
Editing by Reiner Simanjuntak