The strategy of Kingsrose Mining to lift the performance of its Talang Santo Gold Project in Sumatra, Indonesia, is delivering highly encouraging results, with December quarter production rising 55% to 6213 ounces.
The increased production, which saw mined tonnages increase 62% to 21,341 tonnes, is largely due to successful measures implemented to manage water inflows at the mine.
The all-in sustaining costs at Talang Santo during the December quarter are being finalised and will be published as part of the company’s quarterly report later this month. However, Kingsrose says it is clear that the increased production resulted in a significant reduction in Talang Santo’s costs per ounce.
Kingsrose chairman John Morris, who will work in an executive capacity while the company finalises the appointment of a new managing director, said the water management plan and ongoing focus on increasing production at Talang Santo was proving effective.
“Talang Santo is an outstanding mine with exceptionally high grades and low costs. Unfortunately, the mine’s performance has been hampered in recent times by the challenges associated with water inflows in some parts of the mine,” he said.
“These latest results are pleasing and we are confident that the project will continue to see ongoing progress on both the production and cost fronts, generating increasing cashflow for the company.”
Kingsrose is also seeking to build on the exploration strategy implemented over the past 12 months which has yielded early-stage success on numerous prospects across the wider project area. A review of geophysical data is currently under way, which will assist with refining targets for a drill program scheduled for later in the year.