E XPLORATION - N EAR M INE & R EGIONAL
EXPLORATION – NEAR MINE
A focus of the exploration-near mine effort, especially during the last year, has been to identify potential satellite open pit deposits, which could provide future supplementary ore feed to the Chatree operation. Such ore feed is initially being sought within a ten kilometre radius of Chatree, which is considered an economic trucking distance for ore of similar grade as Chatree. Higher grade ore feed may be trucked from greater distances and current costings indicate that Akara can truck ore for over 100 kilometres for a cost of about one gram gold/tonne. During the current quarter, some RC drilling was carried out in a number of near-mine prospects. The results are currently being compiled.
REGIONAL EXPLORATION – THAILAND
Chokdee Prospect Exploration will not be undertaken at Chokdee for some time due to the wet season, access issues and a re-focus of the drilling program on the Chatree mine area. Suwan Prospect Exploration is planned to be expanded at Suwan in the coming months, after the wet season, with a view to upgrading the exploration effort in this area in the December quarter.
REGIONAL EXPLORATION – AUSTRALIA
Queensland An intrusive-related gold+/- copper target, with a large 3 x 2 kilometre alteration system, south of Charters Towers, was tested with 9 drillholes (1621 metres total). A pyrrhotite-rich core was identified with gold-copper mineralisation of low grade. Results were insufficient to continue under an option agreement with the private company that holds the lease. The company regularly reviews exploration and advanced project farm-in opportunities within Australia and S E Asia.
Total cash in bank was A$46.9 million (US$40.2 million) and bullion on hand was A$4.6 million (US$3.9 million) as at 30 June 2010 with no debt and an undrawn US$30 million working capital debt facility with Investec Bank (Australia) Limited.
SUMMARY SALES - G OLD & SILVER
Category Units Jun 2010 Quarter Mar 2010 Quarter Jun 2009 Quarter 923
G OLD S ALES
Kingsgate is an unhedged gold producer. The average cash price received by Kingsgate for gold sales in the quarter was US$1196/ounce.
Average Cash Price Received
(on gold production)
1,196 33,081 156,040 42.4
1,112 30,794 115,789 36.2
Gold sold Silver sold Revenue from Metal Production
43,697 152, 611 42.4
Kingsgate’s Managing Director, Gavin Thomas, converted 2.5 million unlisted options into shares on 30 June 2010 and 1 July 2010. Kingsgate’s Board considers this an endorsement of the commitment and faith Mr. Thomas has in Kingsgate’s robust future .
Plant Expansion Area - construction has commenced on the new Chatree North Processing Plant beside the current Chatree Plant
Kingsgate Consolidated Limited - Quarterly Report for three months ended 30 June 2010