Funds boost provides push for new project

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 28 Feb 2013   Posted by admin


THE production ramp-up at Kingrose Mining’s Way Linggo operation is soon to be accelerated, following Credit Suisse’s decision to provide US$15 million in funding for the project.
Credit Suisse will provide the funds through a two-part prepaid gold transaction to PT Natarang Mining; an 85 per cent owned subsidiary of Kingrose and operator of the Way Linggo project.
A portion of the funds is dedicated to further drilling, to outline and expand the Talang Santo resource, as well as for testing of nearby target areas and general working capital purposes.
The ramp-up activities are to take place at the Talang Santo gold mine in south Sumatra, where Kingrose made its second high-grade epithermal gold discovery around 7km from the company’s existing Way Linggo mine and processing plant.
The Way Linggo project has a JORC compliant resource of 2.1 million tonnes of gold with a grade of 6.9g/t gold containing 485,900 ounces.
Kingrose managing director Chris Start said the funding would allow the company to swiftly press forward with developments.
“This funding will allow us to ramp up production at Talang Santo as quickly as possible and ensure that the project generates maximum income for both Kingrose shareholders and for Indonesia, particularly for the people of Lampung Province [in] Sumatra,” he said.
Development activities at Talang Santo are subject to final permission from the Indonesian Mines Department, which is expected to occur later this month.


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