The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
Issue link: https://asiaminer.epubxp.com/i/632337
Volume 13 • Issue 1 | 2016 | ASIA Miner | 29 Thailand GOLD production of 22,489 ounces during the September quarter at Kingsgate Consolidated's Chatree project was lower than the previous quarter owing to lower grades during a planned mine cut back phase. Total cash cost per ounce was US$879, including royalty of US$93 per ounce. The company remains confdent of meeting its gold production guidance at Chatree for the 2016 fnancial year of 125,000 to 135,000 ounces and says the scheduled overburden stripping ac- tivities will result in a staggered production profle skewed towards a strong second half of the fnancial year. Mining continued from Stage 2 of A Pit during the September quarter with ore mined totalling 329,248 tonnes grading 0.66 grams/tonne gold. Total ex-pit ore and waste movement was more than 1.513 million tonnes. The stockpiled ore at the end of the quarter, including the crushed ore stockpile, was more than 8.007 million tonnes @ 0.47 grams/ tonne for 121,550 ounces of contained gold. Silver production during the quarter totalled 166,244 ounces. Total production costs after deferred stripping costs, depreciation and amortization were US$1197 per ounce. Capital expenditure was Aus$8.4 million, in- cluding $8 million on Tailings Storage Facility 2. Mill throughput during the quarter was more than 1.463 million tonnes. At the start of the quarter mill feed consisted mainly of low grade stockpiled ore but the volume of mined ore processed in- creased during the quarter as the Stage 2 pit deepened. Mill feed grade was 0.66 grams/tonne gold and 10.3 grams/tonne silver with recoveries for gold and silver of 80.1% and 33.4% respectively. Re- covery issues due to carbonaceous ore encountered during the June quarter were not repeated. Kingsgate implemented a number of improvement projects at Chatree including improved automation in the milling circuit to help optimize control over throughput, grind size mill liner wear rates. Specialized equipment was also acquired to separate grit from the carbon which will improve gold and silver stripping effciencies. During the quarter three holes were drilled to test the underground potential with two holes down dip from A Pit and one hole down dip from C Pit. Results confrmed the continuity of a major alteration zone in A Pit. The transparency of environmental monitoring at Chatree has been enhanced by the publishing of monitoring results on the Akara Re- sources Public Company Limited website and through other local community channels. Akara is Kingsgate's Thai operating subsidiary. METAL Tiger has exercised its option to take 90% control of an exploration joint ven- ture in Thailand focused on gold, antimony and copper. The UK-based company has now acquired outright its joint venture with Southeast Asia Mining (SEAM) for total con- sideration of US$50,000. In addition, following a review of SEAM's wider Thailand operations, including the work undertaken during the Board's country visit in October, Metal Tiger has now negoti- ated an additional option to acquire the Thai interests of SEAM's Canadian parent entity, Southeast Asia Mining Corp (SEA). This includes SEAM and two other SEA subsidiaries, eight Special Prospecting Li- cence Applications surrounding the histor- ic Boh Yai and Song Toh zinc-silver-lead mines in Kanchanaburi province of western Thailand, and two mining lease applications overlaying historical mining lease applica- tions in the area, plus the exploration and mining database compiled by SEAM during its operations in Thailand since its incorpo- ration in 2006. SEA has completed an NI 43-101 com- pliant preliminary economic assessment on the mines based on 22 years of operational records. They have a compliant resource of 4.9 million tonnes, excluding a 195,000 tonne historical resource, and have only been mined to 150 metre depth with signifcant down dip potential. The mines have been on care and maintenance since 2002 when low met- als prices dictated operations to shut down, although they did successfully run 60,000 tonnes of ore through the mill in 2008. Metal Tiger has paid a non-refundable fee of $30,000 to secure the SEA option which will be forfeited and expire, if not exercised on or before February 15, 2016. Should Metal Tiger elect to exercise the option the initial consideration totals US$500,000. Metal Tiger's CEO Cameron Parry said, "Metal Tiger was founded with one of its key objectives to build substantial precious and strategic metals interests in South East Asia. This new option comes after fve years of extensive work in Thailand and developing a working relationship with SEAM over the past three and a half years. "The Metal Tiger Board is of the view that Thailand offers unique and substantial ex- ploration and development opportunities for companies with a good understanding of the operating environment in the natural resources sector and how to conduct op- erations on the ground. Metal Tiger has es- tablished a team in-country that is already highly active in the enhancement of our ex- isting interests and in the proactive search for new opportunities." Chatree on track for gold guidance The prospects involved in the initial Metal Tiger joint venture with Southeast Asia Mining (SEAM). Metal Tiger boosts Thai presence