http://www.kingsgate.com.au/wp-content/uploads/2014/03/ASX-Icon.png 80 80 Kingsgate Web Admin http://www.kingsgate.com.au/wp-content/uploads/2015/05/KCN_WebLogo_SMALL.png Kingsgate Web Admin2017-04-28 16:32:352017-04-28 16:40:43March 2017 Quarterly Report
Quarterly Report for the period ending 31 March 2017
- Kingsgate continues to progress its 100% owned Nueva Esperanza Project, with work continuing on a seasonal exploration program as well as permitting and feasibility related activities.
- Exploration drilling, comprising a total of 7,756 metres (43 holes) of Reverse Circulation (RC) drilling and 2,322 metres (8 holes) of diamond drilling, has been completed at Nueva Esperanza during the field season that commenced at the beginning of September 2016.
- To date, there have been encouraging drill intercepts from both the Huantajaya and Carachitas exploration targets. (See ASX:KCN release titled “Chile – Drill Results from District Exploration”, dated 27 February 2017).
- Drilling is in progress on exciting new geophysical targets.
- Some large-scale mergers and acquisitions in the Maricunga Belt in March 2017 have firmly cemented its claim as a highly prospective region.
- The Chatree Gold Mine was placed on Care and Maintenance following cessation of production under Thai Government orders on 31 December 2016.
- 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.
- TAFTA consultations can take up to three months and, failing a mutual outcome, international arbitration proceedings may follow.
- Kingsgate is well funded to meet its planned calendar 2017 expenditures in Chile and Thailand.
- Cash at 31 March 2017 totaled A$28.7 million ($0.13 per share).
- Corporate debt at 31 March 2017 is zero following the repayment of an A$5 million corporate bank debt facility on 3 February 2017. Kingsgate retains a $10 million Thai related preference share liability classified as debt.