Nueva Esperanza Project – Teterita Mineral Resource Upgrade

Kingsgate Consolidated Limited (ASX: KCN) is pleased to announce a 30% increase in contained silver for the Teterita deposit following the results of a drilling campaign to upgrade the Mineral Resource. Teterita is part of the resource base for the Nueva Esperanza Project, located in the Atacama Region of Northern Chile.

As of 31 March 2012, the total Mineral Resource at Teterita has increased to 17.0 million ounces of silver, hosted in 6 million tonnes of ore at an average grade of 89 grams/tonne silver at a 22.5 grams/tonne silver cut-off (previously 13.1 million ounces from 4.8 million tonnes of ore grading 85 grams/tonne silver). At a gold/silver price ratio of 45, this is equivalent to around 380,000 ounces of gold (cut-off 0.5 g/t AuEq).

Table 1. Mineral Resource of Teterita as at 31 March 2012

(cut-off grade 22.5 g/t silver)

Following this upgrade, the combined Nueva Esperanza Project Mineral Resource is now 75.3 million ounces of silver and 227,000 ounces of gold hosted in approximately 30 million tonnes at 0.24 g/t gold and 79 g/t silver. This is equivalent to 1.9 million ounces of gold equivalent at a gold/silver price ratio of 45 (cut-off 0.5 g/t AuEq).

Kingsgate Managing Director Gavin Thomas said,” This result confirms our confidence in the quality and opportunity at the Nueva Esperanza project and supports our initial view that the project timeline can be fast tracked by mining parts of the Arqueros deposit and the Teterita deposit first.”

“The final feasibility study will now be expanded to include the Teterita results and this is anticipated to have a positive impact on the overall project economics’ he said. “The feasibility study (including the Teterita Mineral Resource) is now due for completion during the September quarter 2012”.

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