Kingsrose revises downward Talang Santo gold output

By Ruli Setiawan

ASX-listed Kingsrose Mining Ltd said it has revised downward gold production at its Talang Santo mine in South Sumatra due to facility construction delays.

The company said in a statement Monday first quarter production of 4,591 ounces of gold and 8,730 ounces of silver at an all-in sustaining cost of US$1,236/oz.

?Continued challenges relating to the inflow of water into the mine and the related suspension of the sinking of the 5 Level external shaft have resulted in lower than forecast production year to date. In light of this, the company advises that its production guidance for the 2016 financial year has been revised from a range of 27,000 ? 35,000oz to 19,500 ? 21,500oz of gold,? Kingsrose said in a statement.

The company said that as a result of the lower production levels and ongoing costs associated with pumping, the all-in sustaining cost guidance for the 2016 financial year has been revised from US$800 - $900 an ounce to US$1,150 - $1,240 an ounce.

Kingsrose Director Bill Phillips said the delays associated with construction of the 5 Level shaft had reduced production, which in turn increased costs. ?The shaft is vital because it will allow us to access the high grade portion of the orebody and ultimately increase production rates,? Phillips said. ?The need to grout the shaft walls has slowed progress but with the grout remediation program being successful on the Splay vein, we are confident that similar success will be had around the shaft.?

?While it is disappointing that this has taken longer than anticipated, the significant benefits of this work will allow us to meet our key objectives in the 2017 financial year,? he said.

Editing by Reiner Simanjuntak