Exploration
Resource development drilling continued within the Chatree Mining
Leases throughout the year. The aim was to improve the defi nition of
the ultimate extent of the mineralisation within the open pit mining
operation at current gold prices. Future work will also focus on the
defi nition of potential high grade ore feed including potential high
grade vein systems that could be amenable to underground mining.
Regional exploration focused on locating potential additional satellite
feed deposits near Chatree and new discoveries that might become
new “stand-alone” gold operations within the Thai gold belt. Several
prospects were identifi ed, which will require further drilling in order
to become mineral resources.
At Challenger, exploration remained focussed on the continuity of
the main mineralised structures below the 79 Fault with good results
returned. The second focus was the resource potential of parallel
structures close to the surface, initially at Challenger West, where excellent
results were obtained during the year. The drilling has successfully
increased the reserves at Challenger to 0.61 million ounces, an increase
of almost 50% without allowing for mining depletion.
Regional exploration continued on properties in Australia and
opportunities in SE Asia and South America continue to be evaluated.
|
Past and Future
Kingsgate has shown its ability to deliver high quality shareholder
returns by a strong focus on mine performance, sustainable practices,
focussed and diligent exploration and the effi cient management of its
gold mining operations.
The outlook for the Group is for a much stronger production performance
in fi scal 2012 with Chatree benefi tting from mining the high
grade ore in the C North deposit, expected in the December quarter
2011, and the contribution from the Chatree North expansion which is
on schedule for practical completion in October 2011.
Group gold production for the full year to 30 June 2012 is expected
to be in the range of 240,000 to 260,000 ounces. This includes 145,000
to 155,000 ounces from Chatree, due to the higher grade ore from the
C North deposit and the ramp-up of the Chatree North Plant expansion,
and between 95,000 to 105,000 ounces from Challenger.
Beyond the new fi nancial year, the full benefi ts of an expanded plant
will couple with growing production from the development project
pipeline of Nueva Esperanza and Bowdens. With these growth projects,
Kingsgate remains focussed on increasing production per share,
resources and reserves per share and earnings per share as the Company
continues to be the rising mid-tier gold company on the Australian
Securities Exchange.
|
