JOHANNESBURG (miningweekly.com) – ASX-listed Kingsrose Mining has secured commitments to raise A$8.5-million in a two-tranche share placement at 12c a share to fund the ongoing mine development in Indonesia.
The proceeds of the raising will be applied primarily to the ongoing mine development at Talang Santo, including the completion of the key 5 Level haulage shaft and the establishment of capital infrastructure.
Sinking of the shaft resumed earlier this month. Along with providing additional hoisting capacity, it will provide direct access to the higher-grade areas of the orebody and act as a platform for underground drilling aimed at increasing the Talang Santo resource.
Funds will also be applied to ongoing exploration activities across the broader Way Linggo project, of which Talang Santo forms part. Recent reconnaissance work has highlighted three new targets in the southern part of the project.
Total production for the year June 30, 2016 was 18 641 oz of gold, which was slightly below the company’s guidance of 19 500 oz to 21 500 oz of gold. The result was impacted by the ongoing challenges presented by the flow of water into the mine.
In an effort to resolve this issue, Kingsrose has commissioned expert consultants, Mining Plus, to conduct a review of mining practices aimed at increasing productivity and Resource recoveries. Consultants CDM Smith will conduct a hydrological review aimed at providing water management solutions to reduce to flow of water into the mine and Quattro Project Engineering will assist with designing suitable pumping arrangements for the 5 Level.
On completion of the Mining Plus review, Kingsrose will publish production and cost guidance for the 2017 financial year.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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