PERTH (miningweekly.com) – Gold miner Kingsgate Consolidated reported a 10% increase in production during the three months ended December 31, as its Chatree mine, in Thailand, continued to deliver results.
Gold production for the quarter reached 47 307 oz, compared with the 43 012 oz produced in the previous quarter, with the Chatree mine delivering 28 257 oz of gold, compared with the 22 489 oz delivered in the September quarter.
The Challenger mine, in South Australia, also delivered 19 050 oz of gold during the quarter, despite two separate mill down-times. This compared with the 20 523 oz delivered in the previous quarter.
Under the current mine plan, Challenger would be placed on care and maintenance during the March quarter.
Kingsgate in October last year executed an option agreement with a 50:50 joint venture (JV) between ASX-listed WPG Resources and Diversified Minerals, to divest of its Challenger gold mine.
Under the terms of the agreement, Kingsgate would operate the mine until the completion of commercial production in February, with the mine then being placed on care and maintenance.
In return for the asset, Kingsgate would receive A$1-million, to be paid in equal quarterly instalments from the start of mill operations by the JV partners, as well as a A$25/oz royalty on the Challenger south west zone, which would take effect after the first 30 000 oz of production.
It was estimated that the Challenger mine would produce about 10 000 oz of gold during January and February this year.
Meanwhile, production from the Chatree mine was expected to reach between 125 000 oz and 135 000 oz in 2016.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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