Talang Santo posts strong production increase in December quarter

By Ruli Setiawan

ASX-listed Kingsrose Mining Limited said Monday that its strategy to lift the performance of its flagship Talang Santo gold mine in South Sumatra, is delivering highly encouraging results, with December quarter production rising 55 percent to 6,213 ounces.

The company said in a statement that the increased production, which saw mined tonnages rise by 62 percent to 21,341 tons, is largely due to the successful measures implemented to manage water inflows at the mine.

?The all-in sustaining costs at Talang Santo during the December quarter are now being finalized and will be published as part of the quarterly Report later this month. However, it is clear that the increased production resulted in a significant reduction in Talang Santo?s costs per ounce during the quarter,? the statement said.

Kingsrose Chairman John Morris, who will work in an executive capacity while the company finalizes the appointment of a new managing director, said the water management plan and ongoing focus on increasing production at Talang Santo was proving effective.

?Talang Santo is an outstanding mine with exceptionally high grades and low costs,? Morris said. ?Unfortunately, the mine?s performance has been hampered in recent times by the challenges associated with water inflows in some parts of the mine.?

?These latest results are pleasing and we are confident that the project will continue to see ongoing progress on both the production and cost fronts, generating increasing cashflow for the company.?

Kingsrose said it is also seeking to build on the exploration strategy implemented over the past 12 months. This has yielded early-stage success on numerous prospects across the wider project area.

?A review of geophysical data is currently underway, which will assist with refining targets for a drill program scheduled for later in the calendar year,? the statement ended.

Editing by Reiner Simanjuntak