Kingsrose says Lampung gold project in commissioning stage

Australian-listed mining firm Kingsrose Mining Limited said on Friday the Way Linggo gold/silver project in Lampung province remained in the commissioning phase on low grade ore, with 1,263 ounces of gold and 14,848 ounces of silver generated in the initial stage.

Following the transition phase the core focus of the capital expenditure at Way Linggo has now shifted to exploration and expansion of further resources and reserves to extend the project?s life, the company said.

At least 11 prospective areas characterized by mineralized epithermal style quartz boulders in streams have been identified within the contract of work (COW), including high density bulk leach extractable gold (BLEG) sampling which has defined a number of anomalous areas, it said.

Drilling commenced in the first of the targeted areas, Talang Kecap, located some 2 km along strike to the north west of the active Way Linggo mine. Five drill holes were completed during the quarter (DDH-133 to DDH-137). All hole intersected broad zones of clay or silica alteration and two intersected ore grade vein intercepts as follows:

? DDH-133 1.8 m @ 4.24 g/t gold and 3.9 g/t silver from 46.3m to 48.1m down hole
? DDH-134 2.55 m @ 7.17 g/t gold and 14.5 g/t silver from 49.05m to 51.6m down hole

At the end of the quarter, there was an ore stockpile of 23,628 tons grading 20.3 g/t gold and 235 g/t silver. This ore has been extracted as part of mining development and comes from the previously reported JORC compliant measured and indicated resource.

Annual output is expected to reach an initial rate of 45,000 ounces of gold. (kanti)