The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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30 | ASIA Miner | September/October 2014 Indonesia KINGSROSE Mining has completed the frst shipment of gold and silver dore from the Talang Santo mine at its Way Linggo project in South Suma- tra. It was the initial shipment of dore since the fnal approval to commence production at Talang Santo was received by Kingsrose on July 9. Approximately 2000 ounces of gold and 5650 ounces of silver were shipped subject to fnal assay at the refnery. The fgure does not in- clude gold and silver in circuit (GIC). As at July 31 a total of 5012 tonnes at an average head grade of 10.9 grams/tonne gold and 31 grams/tonne silver had been processed and reconciled with the mill capacity running at an average daily throughput of 300 tonnes. The company says this will progressively increase to the 380 tonnes nameplate capacity in coming months in line with the increase in mine production. Talang Santo ore is being treated at the Way Linggo processing facilities. Head grades have progressively increased and individual days have exceeded 12 grams/tonne gold as the circuit and ore feed blends con- tinue to be balanced following the initial build-up of GIC. A key outcome has been the metallurgical recoveries which are returning 97% for gold and 92% for silver. Underground operations at Talang Santo are focused on the set-up of additional sub levels, rises and ore passes required to commence stoping. Mining is being undertaken on the 2 and 3 levels in the Hang- ing Wall and Mawi veins, and the Splay Vein of 3 Level. This work is aimed at matching mine production to current mill capacity over coming months. A number of process plant initiatives aimed at circuit optimization and cost savings are also being trialled. These include running the SAG mill stand alone to achieve required grind size without the need to parallel the ball mills, with the required specifcations being achieved at 65% power draw on the mill. Trials on thickening leach feed are also under way, which may reduce reagent costs. Kingsrose managing director Scott Huffadine says, "We are very pleased to have shipped our frst dore in under a month of receiving fnal approvals. This represents a major milestone in the re-start of Way Linggo." The company has entered into a Deed of Variation of Loan Agreement with each of Advance Concept Holdings and Beaurama to restructure the repayment profle of current loan facilities. The lenders have agreed to term-out repayment of the facilities to allow the debt to be repaid by October 30, 2015. Under the previous terms, the facilities required repayment to commence in July 2014 with fnal repayment due in Oc- tober 2014. First shipment from Talang Santo VANGUARD Mining Corporation's Indonesian partner PT Raksasa Metal Agung has reported highly favourable results from a survey of a prospective gold and copper mining area in Karang Tengah District, Wonogiri Regency, Central Java. The survey revealed copper content of more than 14%, silver @ 17.50ppm and gold @ 9.20ppm. PT Raksasa Metal Agung is securing the required licensing and per- mitting from government agencies to begin operation and production. Vanguard believes the joint venture may be the frst one in Indonesia to generate revenues and cash fows for the company, though on a smaller scale compared to the potential of the 8100 hectare gold con- cession at Mandailing Natal in North Sumatra. PT Raksasa president Agung Yudyasmara says: "We have a good knowledge of Wonogiri and are pleased with the survey results. We are highly confdent that the operation at this location will bring immediate economic benefts for shareholders of both companies." Vanguard's executive vice chairman and chief geologist Quang Le says, "We are eager to launch this project with PT Raksasa while de- veloping large-scale concessions that can turn Vanguard into a major player in the near term. Besides the North Sumatra projects, the com- pany has been looking at other opportunities elsewhere in conjunction with industry and fnancing partners to continue building a portfolio of key assets." In early June the company announced it had signed an agreement with PT Cendrawasih International to acquire a 70% equity interest in an 8100-hect- are tenement at Mandailing Natal. Vanguard will pay US$6.5 million in a combination of cash and stock of the company for a 70% equity interest. PT Cendrawasih principal Jay Muhd says, "We look forward to com- pleting professional exploratory work on the tenement, including a JORC-compliant feasibility study, in order to bring the property to oper- ation and production status." Quang Le says, "The surrounding gold mining activities include Su- matra Gold & Copper and Sihayo Gold, both publicly traded compa- nies on the ASX." Vanguard Mining Corporation is a Nevada corporation established in 1987 that is building a portfolio of mineral assets in South East Asia, including gold, copper, limestone, and manganese. The company has also investigated mineral opportunities in other geographical areas. The company is focused on executing its exploration and mining plans in Indonesia and will complete its fnancial audits in order to fle a registration statement to resume its fully reporting status with the US Securities and Exchange Commission and upgrade the trading venue of the company's stock, which used to trade on the NASDAQ Stock Market and Over-the-counter Bulletin Board. A sample from the Vanguard Central Java property showing visible gold miner- alization. Favourable Central Java survey results

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