December 2015 Quarterly Report


  • Group quarterly gold production of 47,307 ounces at a total cash cost of US$832 per ounce generated solid cashflow, delivering a 26% operating margin against an average gold price achieved of US$1,122 per ounce.
  • Both Chatree and Challenger operations remain within FY16 production guidance, with a stronger second half expected.
  • Chatree quarterly gold production of 28,257 ounces at a total cash cost of US$854 per ounce.
  • Challenger quarterly gold production of 19,050 ounces at a total cash cost of US$799 per ounce was a very strong performance despite two separate mill down-times.
  • At Nueva Esperanza, the Spring Phase 1 drilling campaign commenced during the quarter delivering exciting gold intersections in the new project area of Carachitas which is within two kilometres of the proposed plant site.
    • A total of six holes were drilled on three section lines at 50 metre intervals following up from a single hole drilled previously which also intersected gold mineralisation. All six holes returned significant gold intersections from shallow depths less than 20 metres below the natural surface.
    • The best of the new intersections was: 11 metres at 4.90g/t gold from 14 metres in drillhole ECCR-02.
    • The FY16 objective remains unchanged with the primary goal to continue to define and drill gold targets on the ~45 square kilometre alteration system with the aim of increasing the 1.9Moz AuEq Nueva Esperanza resource.
  • Kingsgate maintains a healthy cash position with cash and bullion/doré totaling A$55.5 million and is confident that its second half year cashflow will support all of its financing and debt activities.

Group Operating Summary

Operation Production
Total Cash Costs
Chatree 28,257 854
Challenger* 19,050 799
Total 47,307 832


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