re: Ann: MEDIA RELEASE - KINGSROSE POUR FIRST...
KRM have had analysts over to see the Way Linggo project, hence the recent movement in the SP. Key points; low cost, high grades, just the starting point, a number of promising targets, new area being drilled and results in the next couple of months. Expect Way Linggo just to be a small mine compared to the new area! The SP will rocket before the end of the year! TFP
This is an extract from Mining News:
'FORMER Comet Vale producer Kingsrose Mining has moved quickly into another gold project it believes will be a company-maker.
Located in Lampung Province, Southern Sumatra, the Way Linggo project has rapidly become a reality, with mining already underway and a stockpile of 25,717 tonnes of ore grading 18.3 grams of gold and 214 grams of silver to the tonne ready for processing.
High grades and low cash costs suggest the company has picked another winner.
But while Way Linggo is the project starting point, it by no means represents the final resource for the project.
Kingsrose director and mining manager Bill Phillips was quick to point out to a visiting group of analysts, equity advisers, bankers and investors that the 10,540 hectare project has a number of other very promising targets.
About 2 kilometres from Way Linggo we have Talang Kecap, where weve done a lot of work, he told MiningNews.net.
Weve cut around the side of some stringers coming into the wall with some reasonable grade in them.
Kingsrose started a drilling program into six targets at Talang Kecap this week as the exploration party packed up and moved on to the Mita Jaya site, which is a further 2km away.
The grades at Mita Jaya are very good on the top, Phillips added. Theyve come up with up to 32 grams to the tonne and theyve got a bit of in situ there of about 3 grams to the tonne.
The company plans to install a road to Mita Jaya in the next three weeks to give the exploration team better access.
Phillips and Kingsrose executive chairman John Morris have little doubt their latest project will be a major success.
I see this project as a company-maker, Morris said. I think Way Linggo is going to be the small one in the project.
Kingsroses move from the joint venture with Reed Resources at Comet Vale, north of Kalgoorlie, has been an interesting one.
The Sand Queen mine at Comet Vale was located in a dry, flat, arid stretch of ground, while Way Linggo is situated in mountainous jungle terrain, but that is not the only difference between the two.
Weve gone from archaean to epithermal, which is very different, Morris said, but he pointed out that Phillips had spent the past 10 years working in epithermal geology in the Philippines with Medusa Mining.
This latest Kingsrose project is definitely an impressive operation, with the company calling together key staff from around the world to establish and run the mine.
Comet Vale provided a steady income, with the final quarter delivering an estimated 7500 tonnes at 8 grams to the tonne. The previous quarter Kingsrose banked $2 million from gold sales.
Way Linggo will be a much different proposition.
With total capital expenditure estimated at $US12 million, mill capacity of 140,000t of ore per annum at 12g to the tonne for the first 18 months and a cash cost of only $147 an ounce of gold after silver credits, Kingsrose has every reason to be optimistic for the future.
Finance director Tim Spencer credited much of the companys success on a flat management structure introduced by Morris.
We dont have a hierarchal system and we hope to keep what we have in place now for some years to come, he said'.
KRM Price at posting:
$1.06 Sentiment: LT Buy Disclosure: Held
