Kingrose to commission Way Linggo gold mine

Australian-listed Kingsrose Mining Limited is applying the finishing touches to its high-grade Way Linggo gold and silver mine in Indonesia's Lampung province in Sumatra with aim being to start commissioning the processing plant near the end of next month. Stockpiling ore from the mine has started with 14,000 t of material assaying 21.9 g/t gold and 293 g/t silver is ready for the process plant. After silver credits and royalty payments the gold cash cost is expected to be less than $200/oz.

The executive chairman of Kingsrose, John Morris, said the high grades of the material extracted so far during mine development work was being treated as a bonus and boded well for the remainder of the orebody. "It is significantly higher in both gold and silver content than was predicted for the development areas from the drill-based resource estimates," he said.

High metal grades are a traditional feature of the epithermal vein style mineralisation being mined at Way Linggo which has, so far, been shown to contain two distinct orebodies, A and B. The company said face sampling along the strike of the A orebody had returned assays as high as 62 m grading 34.2g/t gold, plus 452g/t silver. Other recent face assays from mine development work on the A orebody include 50m at 24.7g/t, plus 371g/t silver. The most recent face samples from the from the B orebody include 57 m grading 27g/t gold, plus 369g/t silver.

Morris said construction of the processing plant at Way Linggo was well advanced. "All major large equipment, including ball mills, crushers, and conveyors are on site in preparation for installation," he said. "Construction of the gold room, on site-laboratory and power house is progressing."

The company completed its acquisition of the majority interest of Way Linggo gold/silver mining project in February 2009. Kingsrose owns 85% of Indonesian company PT Natarang Mining.