THE restructured Kingsrose Mining is continuing a turnaround at the Way Linggo Gold-Silver Project in Sumatra, with production increasing and strong progress made on several potential growth options. Increasing production at Way Linggo open pit mine is driving the turnaround with the operation consistently producing high-grade, low-cost gold and silver.
During the September quarter, there were 8791 ounces of gold produced, an increase of 74% on the previous quarter.
Open pit activities have involved a series of staged cutbacks aimed at safely recovering pillars and remnant ore located above the 1 Level of the original underground mine. As a result, Way Linggo is generating strong cashflow, as highlighted by its performance during the September quarter, when it produced 24,224 tonnes at 9.1 g/t gold at a cash cost of just US$311.
In addition, the Indonesian Mines Department has approved the final pit cutback at Way Linggo. The application for the Pinjam Paki (borrow and use forestry permit) is expected to be approved in February 2018, in line with Kingsrose’s development timetable. Approval of the cutback means Kingsrose will continue to generate solid production and cash flow.
At the nearby Talang Santo underground mine production continues to be adversely impacted by the inflow of groundwater and poor ground conditions. There has also been a reduction in mineable areas as a result of delays in developing the mine to access the lower levels. This combination of factors has rendered the mine uneconomic and as a result, the company is progressively suspending underground operations.
Kingsrose believes significant potential remains at Talang Santo and has commenced a scoping study to consider options to re-engineer the mine. This would involve modern mechanised underground mining methods resulting in greater production and lower costs.
In addition, Kingsrose has commenced a study into the suitability of an ore sorter for Talang Santo and test work is under way. The sorter has potential to significantly increase the high grades and reduce dilution from any future mining operations.
In parallel, Kingsrose is completing a feasibility study on an open pit operation at Talang Santo, where, similar to Way Linggo, there is a significant high-grade portion of the resource remaining in the upper levels of the mine.