PERFORMANCE at Kingsrose Mining’s Talang Santo Gold-Silver Project has been impacted by water management issues along with a reduction in effective working areas within the mine driven by delayed access to 5 Level. Kingsrose has subsequently revising its guidance for 2016 from 27,000-35,000 ounces down to 19,500-21,500 ounces.
As a result of the lower production levels and ongoing costs associated with pumping, the all-in sustaining cost guidance for 2016 has been revised from US$800-$900 an ounce to US$1150-$1240 an ounce.
Kingsrose executive director – mining Bill Phillips said the delays associated with construction of 5 Level shaft had reduced production, which in turn increased costs. “The shaft is vital because it will allow us to access the high grade portion of the ore body and ultimately increase production rates.
“The need to grout the shaft walls has slowed progress but with the grout remediation program being successful on the Splay vein, we are confident that similar success will be had around the shaft.
“While it is disappointing that this has taken longer than anticipated, the significant benefits of this work will allow us to meet our key objectives in 2017.”
During the March quarter mining activities were focused on the 4 Level and 5 Level sub-level development with 17,571 ore tonnes mined @ 8.5 grams/tonne (g/t) gold and 17 g/t silver. The Splay vein continued to produce excellent grade with 3448 tonnes @ 14.1 g/t gold and 35 g/t silver mined. Towards the end of March sub-level development commenced on the 5 Level, albeit slowly.
Development on the 4 Level identified an extension of high grade veining to the east of the Hanging Wall vein, approximately 50 metres beyond the previous plan, which may potentially open a new area. This extension produced 220 tonnes @ 26 g/t gold during the quarter with further drilling and development advance along strike to the east and up dip scheduled for the June quarter.
This new high grade zone extends beyond the current known limits of mineralisation and has the potential to enlarge the system with the vein thickness increasing up to four metres in some places.
Two additional multi-stage pumping stations were established on the 4 Level during the March quarter to provide multiple levels of redundancy in the pumping system. This had a positive impact on productivity.