The Asia Miner

OCT-DEC 2016

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

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Page 36 of 75

Volume 13 • Issue 4 | 2016 | ASIA Miner | 35 Indonesia THE outstanding potential of Talang Santo mine within Kingsrose Mining's Way Linggo Gold Project has been highlighted by an independent report, which states says that a series of conventional practices will sig- nificantly increase production rates. It rec- ommends an overhaul of mine planning and scheduling methods . The report by Mining Plus has highlighted the outstanding nature of the underground ore body and recommended measures to significantly improve its operational perfor- mance . It points to 'exceptionally good ore and high potential for additional resources' . It notes that the mine's performance has been hampered by insufficient working fac- es and addressing this will help ensure ore extraction is maximised, thereby maintain- ing steady production rates and more accu- rately forecasting production . The report noted that alternative mining methods should be investigated with a view to extracting high-value ore, which may have been left behind in pillars . Mining Plus will work alongside the com- pany's operational team to update the mine plan, create a schedule to rebuild devel- oped stocks and investigate remnant pillar mining . Other findings included: • The mine safety performance is good, with safety KPIs as good or better than the underground mining statistics re- corded by Western Australia's minerals industry in 2014-2015; • The mining risk register contained a number of identified extreme risks with appropriate control measures docu- mented; • The mine de-watering efforts, in con- junction with the BASF chemical grout- ing, have enabled water issues to be kept relatively under control; • The mine has exceptionally good ore identified below the 5 level and high potential for additional resources along strike and at other favourable structural locations; and • Talang Santo should have a long and profitable future. Kingsrose executive chairman John Morris said the Mining Plus report was extremely encouraging because it confirmed the un- derlying strengths of the Talang Santo ore body and highlighted the strong potential to increase its operational performance . Way Linggo is held under a 100sqkm fourth generation Contract of Work (CoW) and is on the mineral-rich Trans-Sumatran Fault . The project has established infrastruc- ture with a 140,000 tonnes/annum Merrill Crowe gold circuit . The company is producing from its sec- ond mine of the project area, Talang Santo, which, based on current development is pointing to being a significantly larger min- eralised system than that seen at the Way Linggo mine. In addition, significant explora- tion upside exists on the wider project area. WGE Holdings Corp, which is to be renamed Consolidated Gold Holdings, has acquired an additional site to be operated in con- junction with its existing gold mining properties in Sulawesi. Monthly production of up to 2 . 5kg from this new operation is scheduled to commence in October . The newly acquired mining operation, based in West Sulawesi, has a reserve area of 10 hectares and utilises heap leach tech- nology through a series of smaller leach pads, which have a com- paratively lower operating cost per ounce of production than the company's existing leaching facilities . The US-based company recently completed the process of reor- ganisation and integration following its acquisition of an established and operational gold production platform in South East Asia . Prior to the latest acquisition the company operated two inde- pendent gold production facilities in northern Sulawesi with a total reserve area exceeding 60 hectares, and monthly production ca- pacity of 15kg, or about 500 ounces, of 99% pure gold . Gold is processed through an established cyanidation-based gold processing facility, including more than 40 ball mills, five flota- tion tanks, state-of-the-art tailing facilities, on-site gold smelting, and administration and office buildings. This operation complements the company's heap leaching facility operating off a 3500-tonne capacity leach pad, which was recently upgraded with a state-of-the-art carbon filtration plant, new plumb- ing and water supply and office facilities. The gold operations are in a high grade volcanic hosted ore de- posit which stretches in an arc across the northern part of Sulawesi, an area originally surveyed and exploited by Newmont Mining . The existing Indonesian gold operations generated revenue of US1 . 02 million in the June quarter compared with $279,000 for the preceding seven months since the company's inception . Net profit for the quarter was $422,000 compared with $65,000 for the preceding period . WGE chairman Herbert Adamczyk said, "I am very pleased to be able to report an inaugural profit for our recently acquired gold pro- duction operation . As we continue the process of increasing output at our existing facilities and bringing new production on stream, we anticipate continued healthy increases in revenue and profit for the remainder of the year . "We believe uncertainties in the global economy will underwrite continuation of the upward pressure on the gold price, which has increased by 25% during the past six months. Our operations enjoy a very low production cost of approximately $500 per ounce . " WGE acquires WGE acquires another gold property another gold WGE acquires another gold property property WGE acquires another gold property The portal at Kingsrose Mining's Talang Santo un- derground gold mine in South Sumatra . Report highlights Report highlights Talang Santo potential Talang Report highlights Talang Santo potential Santo potential

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