Trading Halt – 16 August 2017
ASX Market Release – KCN Trading Halt
Kingsgate’s request for a Trading Halt has today been granted by the ASX.
To view Kingsgate’s request and the ASX Market Release confirmation CLICK HERE.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
June 2017 Quarterly Report
Quarterly Report for the period ending 30 June 2017
Significant Matters
CHILE
- Kingsgate continues to progress its 100%?owned Nueva Esperanza Gold?Silver Project in Chile, with work continuing on a seasonal exploration program as well as permitting and feasibility related activities.
- A total of 11,398 metres (57 holes) of Reverse Circulation (“RC”) drilling for exploration, and 1,830 metres (10 holes) of diamond drilling for exploration and metallurgical sampling has been completed at Nueva Esperanza during the field season that commenced at the beginning of September 2016.
- During calendar 2017, there have been encouraging drill intercepts from the Huantajaya, Carachitas and more recently the new Cerro Blanco West exploration targets. (See ASX:KCN releases titled “Chile ? Drill Results from District Exploration” dated 27 February 2017, and “New Silver Discovery at Nueva Esperanza, Chile” dated 17 July 2017).
- The environmental impact submission (“DIA”) for Nueva Esperanza was submitted to Chilean regulatory agencies on 5 July 2017. (The DIA is essentially a process to amend the existing permit footprint and incorporate a dry?stacked tailing design.)
- Kingsgate was also pleased to appoint Ausenco to complete the detailed engineering and technical components for the Nueva Esperanza Project Feasibility Study in Chile during the June quarter.
- The Ausenco appointment comes after a rigorous selection process that considered economic, technical, and other key project related criteria. The work is scheduled for completion in January 2018.
THAILAND
- 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.
- A consultations meeting between Kingsgate and representatives from the Thai Government took place on 27 June in Bangkok and Kingsgate agreed to extend the consultations period to 27 July.
- While the consultations period has now ended, Kingsgate intends to meet further with the Thai Government in mid?August. Any such meeting will be without prejudice to the Company’s position under TAFTA.
- Kingsgate and the Thai Government commenced this process in good faith, but if at any point in the future Kingsgate considers that a mutual outcome is not able to be reached, Kingsgate is free to commence international arbitration proceedings.
FINANCIAL
- Kingsgate is well funded to meet its planned calendar 2017 expenditures in Chile and Thailand.
- Cash at 30 June 2017 totalled A$22 million.
- Corporate debt at 30 June 2017 remains at zero.
New Silver Discovery at Nueva Esperanza, Chile
New Silver Discovery at Nueva Esperanza, Chile
Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company) has discovered a new zone of silver mineralisation (“Cerro Blanco West”) as a result of exploration drilling at its 100% owned Nueva Esperanza precious metals project in Chile. Nueva Esperanza is a feasibility-stage development project with a resource base of approximately 1.9 million ounces gold equivalent1.
Eight Reverse Circulation (“RC”) holes (See Figure 2) totalling 1,226 metres were completed on the new Cerro Blanco West target prior to drilling being halted by the early onset of winter conditions.
Initial drilling returned the following intercepts:
- Hole KRC-046 intercepted 60 metres grading at 67.57g/t Ag (1.13g/t AuEq602) from 40 metres to 100 metres, including 32 metres at 114.66g/t Ag (1.91g/t AuEq60) from 68 metres to 100 metres;
- Hole KRC-055 intercepted 50 metres grading at 84.04g/t Ag (1.40g/t AuEq60) from 62 metres to 112 metres; and
- Hole KRC-056 intercepted 18 metres grading at 82.32g/t Ag from (1.38g/t AuEq60) 46 metres to 64 metres.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Update on claim against the Kingdom of Thailand
Update on claim against the Kingdom of Thailand
As announced on 3 April 2017, Kingsgate Consolidated Limited (ASX:KCN) (Kingsgate or the Company) and the Thai Government are required to engage in consultations under the Thailand – Australia Free Trade Agreement for a period of three months, expiring on 2 July 2017, to attempt to resolve the dispute over the closure of the Chatree Gold Mine.
The Company met with representatives of the Thai Government in Bangkok on 27 June 2017.
At the request of the Thai Government, Kingsgate has agreed to an extension of the period for consultations until 27 July 2017.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Ausenco Awarded Nueva Esperanza Feasibility Study
Ausenco Awarded Nueva Esperanza Feasibility Study
Kingsgate Consolidated (ASX:KCN) (“Kingsgate”) has today appointed Ausenco to complete the detailed engineering and technical components for the Nueva Esperanza Project Feasibility Study in Chile.
The Ausenco appointment comes after a rigorous selection process that considered economic, technical, and other key project related criteria. The work is scheduled for completion in January 2018.
Strategically, the Feasibility Study along with concurrent permitting is a key step in de-risking and adding value to the project.
Kingsgate’s Executive Chairman, Ross Smyth-Kirk, said “We are delighted to be in partnership with Ausenco to complete the Nueva Esperanza Feasibility Study, having successfully worked with them in the past. Their knowledge and experience in this area will make a valuable contribution to this highly prospective project.”
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Senior Management Changes
Senior Management Changes
The Board of Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) has accepted the resignation of its Chief Executive Officer, Mr Greg Foulis.
The Board would like to thank Mr Foulis for his efforts during his tenure in the role, in particular overseeing the strong performance from the Chatree Gold Mine after the Thai Government prematurely closed the mine in December 2016.
The Board would also like to acknowledge Greg’s efforts in advancing the flagship Nueva Esperanza Gold-Silver Project in Chile.
As an interim measure Mr Ross Smyth-Kirk will assume the role of Executive Chairman.
Mr Smyth-Kirk said “We wish Greg all the very best in his future endeavours and Kingsgate remains well placed to deal with the many challenges that lie ahead.”
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited