Kingsgate Consolidated Limited (ASX: KCN) is pleased to announce the updated gold Mineral Resource inventory and Ore Reserves at its Challenger mine, as at 30th June 2013. The new statement incorporates implementation of the new mine plan focussing on the higher grade Challenger West ore body and mining depletion over the 12 months ending June 2013.
Challenger Mineral Resources are reported at 5.0g/t gold cut-off grade for underground and 1.5g/t gold cut-off grade for open pit are now estimated at 750,000 ounces of gold, compared to the June 2012 estimate of 1,080,000 ounces of gold. The reduction reflects the reassessment of the gold endowment at Challenger Deeps largely around and below the 79 Fault/215 Shear. This is only partially offset by greater delineation of the Challenger West structure that is now defined for over almost 2km down plunge.
Challenger underground Ore Reserves are estimated at an average cut-off grade of 6.4g/t gold and now stand at 102,100 ounces of gold at 6.81g/t gold compared to 640,000 ounces gold in 2012. This Ore Reserve is effectively the interim mine plan being implemented as part of the transition to the Challenger West ore body. The drill program now underway at Challenger West is being undertaken to better define the ore body and hence determine the longer term mine plan. The program will take several months to complete and it is anticipated that a revised Ore Reserve statement will be released during the 2013/14 year incorporating results from this drilling.
The Mineral Resources and Ore Reserves have been reported according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition).
Gavin Thomas, Kingsgate’s Managing Director and Chief Executive Officer, said “the 2013 Challenger Reserve and Resource statement should be regarded as an interim position. The transition to a Challenger West focussed operation is occurring earlier than previously anticipated with implementation of the new mine plan.
“As the current drill program at Challenger West advances, the longer term outlook for Challenger will become better defined”, he said.
“We acknowledge that Challenger is currently in a transition phase but remain confident in the gold endowment in the system and the potential to grow reserves over the next 12 months and beyond.”