Kingsrose speeds up S. Sumatra underground gold project development

Australian miner Kingsrose Mining Limited said on Wednesday that it has accelerated underground development of its Way Linggo gold/silver project in South Sumatra.

The up-scaled project is expected to produce approximately 45,000 gold ounces and around 500,000 silver ounces on an annualized basis. The target date for commissioning of the process plant is now anticipated to be towards the end of the first quarter of 2010, the company said.

The company said the plant throughput and mine productivity rates have been increased to target 140,000 tonnes of ore per annum.

Suppliers, contractors and fabricators of the major out-sourced components, materials and services have been engaged, it said

An additional ball mill has been added to the grinding circuit along with additional leach capacity and a commensurate re-scaling of the Merrill-Crowe precipitation circuit and other associated infrastructure has been incorporated.

Ore development competed to date continues to exhibit strongly positive grade reconciliations and current stockpiles at surface are estimated at 4,075 tonnes at 18 g/t gold and 249 g/t silver (uncut), it said.

Within the main area of drilling completed as of March 31, 2009, a total JORC compliant resource of 669,000 tonnes at 8.44g/t gold and 129 g/t Silver (or 10.6 g/t Gold equivalent) has been estimated by Snowden Mining Industry Consultants.

The Way Linggo Project Contract of Work, held by Kingsrose 85% owned Indonesian subsidiary PT Natarang Mining, covers an area of 10,540 hectares. (denny)