March 2015 Quarterly Report
Key Points
- Group quarterly gold production of 34,538 ounces at total
cash cost of US$843/oz. - Chatree produced 15,899 ounces of gold at US$604/ounce
and Challenger produced 18,639 ounces of gold at
US$1,049/ounce for the quarter. - The Chatree processing plant was not operating for 44 days
during the quarter as a result of a temporary suspension
notice issued by the Department of Primary Industry and
Mining (DPIM) in Thailand. - Strong drilling results continue at Nueva Esperanza, Chile.
Recent results include the following: - 12m @ 3.24g/t gold & 118g/t silver (5.2g/t AuEq60)
from 232 metres in ECHR-84; - 21m @ 6.62g/t gold & 260g/t silver (11.0g/t AuEq60)
from 149 metres in ECHR-89; and, - 20m @ 4.12g/t gold & 115g/t silver (6.0g/t AuEq6)
from 177 metres in ECHR-90. - Cash position at quarter end was A$66.1 million after debt
repayments of approximately US$5.5 million during the quarter.
Appointment of CEO
Kingsgate Consolidated Limited (ASX: KCN) is pleased to announce the appointment of Mr Greg Foulis as Chief Executive Officer (CEO) effective 1 June 2015. Mr Foulis is a geologist by training and a Mining and Finance specialist with 30 years of diverse international experience in mining and financial markets. Senior roles with multi-nationals such as AngloGold and Deutsche Bank have honed management, investment and leadership skills.
Mr Foulis is presently working in investment banking and advisory, with a focus on the mining sector. Prior to this he was Senior Vice President – Business Development at AngloGold Ashanti Ltd, with a global scope to identify and deliver opportunities for growth and improvement. Before AngloGold, Mr Foulis spent seventeen years in Finance, engaged in resource sector related roles including eleven years with Deutsche Bank. Mr Foulis has a Bachelors Degree in Applied Science (Geology) from NSW Institute of Technology and a Masters Degree in Finance from the University of NSW.
Kingsgate Chairman, Ross Smyth-Kirk welcomed the appointment and said, “we are pleased that Greg will bring to the role a broad range of essential skills and strategic perspectives to help maximise the value of Kingsgate’s projects and people. Greg has a clear understanding of the growth and value drivers of our business.”
Mr Foulis said, “I look forward to leading the Kingsgate team through the mining sector challenges, capitalising on opportunities and continuing to build a strong and diverse precious metals company”
A summary of the material terms of Greg Foulis’s employment contract are included in Appendix 1.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
December 2014 Quarterly Report
Key Points
- Strong Group operating performance with quarterly gold production of 61,549 ounces at total cash cost of US$777/oz.
- Half year gold production was 115,106 ounces, well ahead of budget expectations, at total cash cost of US$837/ounce.
- Chatree produced 39,134 ounces of gold at US$643/ounce and Challenger produced 22,415 ounces of gold at US$1,009/ounce for the quarter.
- Exceptional drilling results continue at Nueva Esperanza, Chile, which are expected to significantly increase the gold resource at Chimberos West. Recent results include the following:
- 100m @ 1.96g/t gold & 152g/t silver (4.5g/t AuEq60)
from 92 metres, including
34m @ 3.92g/t gold & 332g/t silver (9.5g/t AuEq60)
from 126 metres in ECHR-55; - 48m @ 7.65g/t gold & 94g/t silver (9.2g/t AuEq60)
from 142 metres in ECHR-47.
- 100m @ 1.96g/t gold & 152g/t silver (4.5g/t AuEq60)
- Strong cash position at quarter end with cash increasing by
around A$15.4 million to A$76.3 million after debt repayments of
approximately A$12 million. - Chatree was issued with a temporary suspension notice for up to
30 days by the Thai Department of Primary Industry and Mining
(DPIM). The notice was issued following unsubstantiated claims
that slightly elevated levels of arsenic and manganese in some
people in the local community, following regular health checks,
were attributable to the mining operation at Chatree.
Due to the uncertainty of the implications of the shutdown of the
operation and the timing of the re-start, the Kingsgate Board
requested voluntary suspension of trading in Kingsgate shares on
the ASX. The Company is working with the authorities to facilitate
the early resumption of mining and processing at Chatree.
Further Strong Gold and Silver Assay Results at Chimberos West, Chile
Kingsgate Consolidated Ltd (ASX: KCN) is pleased to announce new assay results from the ongoing drilling program at its Nueva Esperanza project in Chile, which commenced in August 2014. To date, 9,120 metres have been drilled in 41 holes, supported by a program of high-resolution ground magnetics and induced polarisation/resistivity.
The latest results include:
- 48m @ 7.65g/t gold & 94g/t silver (9.2g/t AuEq60) from 142 metres,
including 4m @ 38.24g/t gold & 76g/t silver (39.5g/t AuEq60) from 159 metres in ECHR-47; - 25m @ 1.07g/t gold and 317g/t silver (6.3g/t AuEq60) from 99 metres;
including 3m @ 1.25g/t gold & 2,187g/t silver (37.7g/t AuEq60) from 118 metres
in ECHR-47; - 100m @ 1.96g/t gold & 152g/t silver (4.5g/t AuEq60) from 92 metres in ECHR-55,
including 34m @ 3.92g/t gold & 332g/t silver (9.5g/t AuEq60) from 126 metres,
including 6m @ 5.28g/t gold & 1,157g/t silver (25.1g/t AuEq60) from 142 metres; - 17m @ 4.55g/t gold & 72g/t silver (5.8g/t AuEq60) from 129 metres in ECHR-38;
- 24m @ 2.98g/t gold & 45g/t silver (3.7g/t AuEq60) from 202 metres in ECHR-52;
- 12m @ 2.40 g/t gold & 47 g/t silver (3.2g/t AuEq60) from 135 metres in ECHR-48;
- 10m @ 3.87g/t gold & 11g/t silver (4.0g/t AuEq60) from 230 metres in ECHR-53; and,
- 5m @ 7.38g/t gold & 26g/t silver (7.8g/t AuEq60) from 229 metres in ECHR-54.
Drilling continues to intersect significant and consistent gold and silver mineralisation to the immediate west of the existing Chimberos Pit in an area named Chimberos West. While mineralisation remains open at depth and laterally, geological interpretation shows well defined structural control, which can now be used to target extensions to this highly prospective area.
Appointment of Non-Executive Director
Via ASX Online
FOR PUBLIC RELEASE
Manager
Company Announcements Office
Australian Securities Exchange
Appointment of Non-Executive Director
The Board of Kingsgate Consolidated Limited (ASX:KCN) is pleased to announce the appointment of Ms Sharon Skeggs as a Director of the Company, effective from 1 January 2015.
Ms Skeggs has had a long and distinguished career for over 30 years in advertising and marketing. She was a Director of advertising agency Saatchi & Saatchi Australia for 15 years. She is also a former Director of the Australian Jockey Club Limited.
For the past four years she has consulted to major companies including Westpac, News Limited, Woolworths, Big W, David Jones, The Just Group and VISA, on a wide variety of corporate matters including change management, restructuring, cost saving, implementing marketing strategies and communications programs.
“Sharon’s vast experience in many areas of corporate life will bring a fresh approach to Kingsgate, and will significantly enhance the Board’s capabilities”, said Executive Chairman Ross Smyth-Kirk.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Strong Gold and Silver Assay Results Continue at Nueva Esperanza, Chile
Kingsgate Consolidated Ltd (ASX: KCN) is pleased to announce new assay results from the ongoing drilling program at its Nueva Esperanza project in Chile. The new drill results continue to intersect further significant gold and silver mineralisation to the west of the existing Chimberos Pit with ECHR-50 located approximately 350 metres to the west of the current resource boundary.
The latest results include:
- 15 metres @ 7.13g/t gold & 103g/t silver (8.8g/t AuEq60) from 150 metres in ECHR-50;
- 20 metres @ 5.18g/t gold & 84g/t silver (6.6g/t AuEq60) from 118 metres in ECRH-42;
- 37 metres @ 3.27g/t gold & 52g/t silver (4.1g/t AuEq60) from 180 metres in ECHR-24;
- 22 metres @ 2.04g/t gold & 23g/t silver (2.4g/t AuEq60) from 183 metres in ECHR-41; and,
- 13 metres @ 1.92g/t gold & 71g/t silver (3.1g/t AuEq60) from 143 metres in ECHR-46.
Hole ECHR-25, that intersected the spectacular result of 170 metres at 4.2g/t AuEq60, announced to ASX on 27 October 2014, has now been extended from 232 metres to 430 metres with diamond drilling. Preliminary logging indicates significant zones of silicification and argillic alteration with abundant proportions of pyrite and copper mineralisation, including chalcopyrite and chalcocite, of hydrothermal origin (see Photo 1 below).
The mineralisation continues to remain open at depth and along strike and shows remarkable consistency. Further drilling to follow up these intersections is underway with two drill rigs working on double shifts.
Note that almost all the significant intersections reported to date comprise assay values consistently close to the average grade of the overall intercept with almost no extremely high grades to potentially bias the result. This characteristic will have a positive impact on the eventual resource estimation and corresponding assessment of contained metal for this deposit.
Approximately 6,000 metres have been drilled to date in the current program since late August. This program has been recently expanded by a further 10,000 metres to follow-up extensions within the Chimberos gold and silver mineralisation, including re-entering several holes that finished at depth in mineralisation.
A ground magnetics survey was recently completed over the current exploration zone and early interpretation indicates possible structures and signatures consistent with deep intrusive bodies.
The ground geophysics suggests that the system could be open further to the west and the survey is being extended in that direction and also the geophysical anomaly extends to the south.
Kingsgate’s Executive Chairman, Mr. Ross Smyth-Kirk said, “The continuation of these strong results from this drilling program is extremely satisfying and is increasing our confidence in the potential for significant growth at Nueva Esperanza.”
“The importance of the growing gold potential of Nueva Esperanza should not be underestimated as it is likely to have a significant impact on the ultimate development.”
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited