A drill campaign at the Alliance and New Alliance deposits of Kentor Gold’s Murchison Gold Project in Western Australia has resulted in an updated JORC-compliant resource estimate.

The total indicated and inferred resource for the two prospects has increased by 14% to 945,500 tonnes @ 2.40 grams/tonne gold with the indicated component now standing at 564,300 tonnes @ 2.35 grams/tonne.

The drilling also resulted in a 20% increase in gold grade and a 37% increase in contained gold ounces compared to the May 2011 resource estimate. Golder Associates was commissioned by Kentor to update the estimate for the deposits, which are at the southern end of the North of Alliance line or mineralization at Murchison, 50km south of Meekatharra in Western Australia’s Mid-West.

Gold was discovered at Alliance on the Federal City line in 1897. Historical Mines Department records show that underground production pre-1954 was reported with the nearby New Alliance Gold Mine and amounted to 17,651 tons for 20,356 ounces. Most of the Alliance and New Alliance mineralization was mined around the turn of the century. There are 2393 drill holes in the area.

Golder was provided with a previous mineralization interpretation of Alliance that was used to guide the update of the mineralization model. The New Alliance deposit was interpreted by Golder and reviewed by Kentor. Resource estimates are based on assay data from drill holes at July 18, 2012, and with a 1.0 grams/tonne gold cut-off.

Kentor is advancing permitting for the prospects with production scheduled to commence during the current quarter. The Murchison project began production in mid-2012 with the potential to add gold-copper production from the neighbouring Gabanintha deposit.

Kentor also has the Jervois Copper-Silver-Gold Project in the Northern Territory with start-up targeted for 2014 following current studies into developing the high-grade copper-silver resource with potential for gold, magnetite and other base metals.

The company also has the development-ready, high-grade, very low cost Andash Gold-Copper Project in the Kyrgyz Republic. The company is awaiting site access and is targeting annual production of 70,000 ounces of gold and 7400 tonnes of copper for an initial six years with high potential for expansion.

www.kentorgold.com.au