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Quarterly Report for the period ending 30 June 2017
- Kingsgate continues to progress its 100%?owned Nueva Esperanza Gold?Silver Project in Chile, with work continuing on a seasonal exploration program as well as permitting and feasibility related activities.
- A total of 11,398 metres (57 holes) of Reverse Circulation (“RC”) drilling for exploration, and 1,830 metres (10 holes) of diamond drilling for exploration and metallurgical sampling has been completed at Nueva Esperanza during the field season that commenced at the beginning of September 2016.
- During calendar 2017, there have been encouraging drill intercepts from the Huantajaya, Carachitas and more recently the new Cerro Blanco West exploration targets. (See ASX:KCN releases titled “Chile ? Drill Results from District Exploration” dated 27 February 2017, and “New Silver Discovery at Nueva Esperanza, Chile” dated 17 July 2017).
- The environmental impact submission (“DIA”) for Nueva Esperanza was submitted to Chilean regulatory agencies on 5 July 2017. (The DIA is essentially a process to amend the existing permit footprint and incorporate a dry?stacked tailing design.)
- Kingsgate was also pleased to appoint Ausenco to complete the detailed engineering and technical components for the Nueva Esperanza Project Feasibility Study in Chile during the June quarter.
- The Ausenco appointment comes after a rigorous selection process that considered economic, technical, and other key project related criteria. The work is scheduled for completion in January 2018.
- On 3 April 2017, Kingsgate advised that it will be seeking a range of remedies, including compensation, from the Government of Thailand for the measures taken against the Chatree Gold Mine in violation of the Thai?Australia Free Trade Agreement (“TAFTA”).
- As a first step, Kingsgate notified the Prime Minister of Thailand that it wishes to engage in consultations as required under TAFTA.
- A consultations meeting between Kingsgate and representatives from the Thai Government took place on 27 June in Bangkok and Kingsgate agreed to extend the consultations period to 27 July.
- While the consultations period has now ended, Kingsgate intends to meet further with the Thai Government in mid?August. Any such meeting will be without prejudice to the Company’s position under TAFTA.
- Kingsgate and the Thai Government commenced this process in good faith, but if at any point in the future Kingsgate considers that a mutual outcome is not able to be reached, Kingsgate is free to commence international arbitration proceedings.
- Kingsgate is well funded to meet its planned calendar 2017 expenditures in Chile and Thailand.
- Cash at 30 June 2017 totalled A$22 million.
- Corporate debt at 30 June 2017 remains at zero.