Kingsrose Mining subsidiary PT Natarang Mining (PTNM) will prepare a feasibility study at its Talang Santo mine at the Way Linggo project in southern Sumatra, in a bid to re-commence full mining activities in February.
The Indonesian Mines Department has given the company a list of the steps necessary for the mine to resume operations including an environmental impact study, a second forestry permit, an emergency evacuation plan and the hiring of a geotechnical engineer. PTNM says it should meet these requirements by mid- January next year.
Talang Santo is the second mine being developed at the Way Linggo project, however operations were suspended after a fatality at the site in September. “Plans have been submitted outlining the development work to be undertaken in relation to establishing a water sump and pumping station at the bottom of the external shaft that extends from surface to level three,” says Kingsrose managing director Chris Start.
PTNM already holds a forestry permit for the Way Linggo mine and associated infrastructure including processing plant, tailings storage facility and camp.
The Talang Santo prospect was discovered in June 2011, 7km north of Way Linggo, and Kingsrose recently announced a 73% increase to the resource totalling 287,489 ounces of gold and 894, 481 ounces of silver.
The company has received community support and approval from the local mayor for the second forestry permit, as well as receiving recommendation from the Governor of Lampung province. The final approval will be given by the Forestry Minister.
Delays to the resumption of mining at Way Linggo means Kingsrose expects its annual gold production to be between 16,000 and 20,000 ounces, with ramp up to a full 40,000 ounces of gold next financial year.