Kingsrose Mining is progressing development of the Talang Santo deposit at the Way Linggo Gold-Silver Project in South Sumatra, after Indonesia’s Mines Department accepted the company’s mine development plan.
Kingsrose subsidiary PT Natarang Mining (PTNM) met with the Indonesian Mines Department and representatives from provincial, regent and local communities to discuss some minor amendments to the plan.
Kingsrose’s managing director Chris Start says the company is progressing the mine development to enable full production rates to be achieved as soon as possible with the establishment of the pumping station and associated infrastructure, secondary egress and development of the 3 level. “These works are pre-requisites for full-scale mining activities to resume at Talang Santo.”
The 85%-owned Way Linggo project is a small but highly profitable operation due to its high gold and silver grades and low operating costs.
In September last year Kingsrose announced a 73% increase to the June 2012 resource to a total 287,489 ounces of gold and 894,481 ounces of silver. The upgrade also saw 59% of the estimate move into the indicated category.
Talang Santo was discovered in June 2011, 7km north of Way Linggo, and Kingsrose has worked to bring the project into production quickly with the development of a shaft, construction of an adit and development of two levels. The transition from shaft development to ore development and stoping at Talang Santo delayed total ore production late last year.
Kingsrose has a production target of 40,000 ounces of gold and 250,000 ounces of silver for the 2012/13 financial year.