Somewhat understated K. The announcement could hardly have been...

Well good news is always good. Hoping the quarterly will reflect these nice surprises. 

Originally posted by Kinglerman

Well good news is always good. Hoping the quarterly will reflect these nice surprises. 

Somewhat understated K. The announcement could hardly have been better. These were the key points. 

1. Strong start to mining at the newTalang Santo open pit, which will drive

Kingrose’s production and cashflow

 

2. High-grade mineralisation encountered 1m from surface

 

3. Outstanding near-surface mineralisation has promptedKingsrose to undertake

extensive grade control trenching in the areas of the pitdesign

 

4. Results of grade control trenching to be used to re-modelthe resource, which

will in turn underpin the pit expansion and studies on theresumption of

underground mining at Talang Santo

 

5. Studies underway to determine the extent to which claycaused drilling results

around Talang Santo to under-estimate the extent of themineralisation; This

work could have significant positive implications forresource modelling and

mine planning

 

6. Compelling near-mine exploration targets identified.

We always new Talang Santo had high grade reserves, but what this makes clear is that the grades and extent of the resource are actually better than expected.

Previously the gold was mined by chasing veins deep into the ground along quartz veins whilst battling what was obviously a flood. That almost sent us broke.

What this makes clear is that

we can profitably mine the area by an open cut mine which has so little overburden that the mines pays for itself as soon as you scratch the ground,

that the reserve is open and probably much larger than expected,

that the grade was underestimated because that part of the deposit which was incorporated in clay close to the quartz was not being recovered by quartz vein mining  and

Talang Santo has every likelihood of being a reserve which will keep on giving for some years and which will probably pay for the exploration of the rest of the company's area. If it does that it may remove a potential cash flow problem which may have arisen a year or two down the track.

We might look back on this Announcement a year or two from now and say that it marked the point at which Kingsrose emerged from its troubles and laid down a solid foundation for its future prosperity.