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Quarterly Report for the period ending 31 December 2016
- The Chatree Gold Mine delivered an outstanding December 2016 quarter with a total of 50,133 ounces of gold poured at a cash cost of US$416 per ounce.
- Disappointingly, the Thai Government has forced the closure of the mine.
- In accordance with both the Thai Government’s announcement in May 2016, and the subsequent December issuance of a Section 44 Order under the Thai Constitution that all gold mining operations generally cease on 31 December 2016, the Chatree Gold Mine was placed on Care and Maintenance with effect from 1 January 2017.
- Kingsgate continues to push for clarity and remedies to the situation in Thailand.
- Kingsgate continues to progress its 100%-owned Nueva Esperanza Project in Chile, with a seasonal exploration program underway.
- Drilling programs comprised of Rotary Air-Blast (RAB) and Reverse Circulation (RC) drill holes commenced in late October/November 2016. Diamond drilling started in January 2017.
- 322 RAB holes were drilled during the quarter. With approximately 40% of the hole samples analysed, there were two notable anomalies, the most exciting being an 8.8g/t gold result located approximately 450 metres to the west of previous Carachitas RC drill intercepts.
- 20 RC drill holes were completed providing geology and condemnation information. Results received to date have no material values. The remaining results will be reported when available.
- In addition, 2 diamond drill holes were completed at Huantajaya in January 2017, providing encouraging geological data and assay results are currently awaited.
- Cash and bullion/doré at 31 December 2016 totaled A$51.2 million (September quarter: A$69.2 million), comprising cash of A$33 million and bullion/doré of A$18.2 million.
- Kingsgate completely extinguished the bank debt against the Chatree Gold Mine during the quarter.
- Kingsgate has an A$5 million corporate bank debt facility that is due for repayment at the end of January 2017.
- Kingsgate estimates that, by the end of January 2017 following the repayment of the corporate bank debt facility of A$5 million, Group cash will be approximately A$38 million..