Kingsrose revises production guidance for Talang Santo gold mine
Friday, November 21 2014 - 03:14 AM WIB
ASX-listed Kingsrose Mining said Friday it has reviewed its 2015 financial year gold production guidance for the Talang Santo mine in southern Sumatra, and revised it downward to a range of 30,000 to 35,000 ounces (from 40,000 ounces).
?The primary driver for the revised production guidance is the deferment of high grade tonnes from the scheduled 2 Level stopes,? the company said in a statement.
The company sees these issues as being short-term in nature related to the establishment of a more stable longer-term production profile from the Talang Santo Mine. ?The underlying fundamentals of the project remain strong, coupled with the growth potential from the ongoing near mine drilling and evaluation of the Talang Samin shaft,? it said.
Kingsrose said the immediate operational focus is on the continued increase in mine production, predominantly from the main ore zone, to achieve consistent levels of above 350 tons per day, in conjunction with a reduction in all-in sustaining costs as production reaches a steady state.
?Positive results have returned from an ongoing sludge infill-drilling program being undertaken from sublevels above the 3 Level. Preliminary results have indicated that the Mawi and Hanging Wall veins coalesce in some areas, indicating wider mineralised sections along strike which were not identified in previous wider spaced Resource drilling,? it said.
Given the increased mining spans that will be encountered from the wider areas of ore, a revised plan to extract these sections is currently being developed to maximize ore recovery.
Kingsrose Mining Limited?s Managing Director Scott Huffadine said: ?Since receiving the final permits in mid-July we have rapidly accelerated development with completing over 1.8 kilometres of lateral development, and steadily increased mine production from Talang Santo. In doing this we have also increased our understanding of what is still a new mine in start-up phase, and confirmed that the underlying fundamentals and growth potential of the project remain positive?.
Editing by Reiner Simanjuntak