Company Information for Kingsgate Consolidated Ltd

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Company Statement

Kingsgate Consolidated Limited (Kingsgate) is a highly successful gold mining and exploration company, traded on the Australian Stock Exchange (KCN: ASX). The company owns and operates the low cost Chatree gold mine in central Thailand through its Thai subsidiary, Akara Mining Limited, using world's best practice for safe, environmental and socially responsible operations.
A rapidly growing reserve/resource position is fuelled by exploration within a surrounding gold province which exhibits world class potential.

Current Operations

Chatree Gold Mine

Mining
The Chatree Gold Mine is located 280km north of Bangkok in Thailand. The Chatree deposit was discovered in 1995 in an area not previously recognised as having potential for significant gold mineralisation. Mining leases were applied for in 1997 and granted in 2000. The Chatree Gold Mine commenced production in November 2001 after a 12 month construction period, on schedule and under budget. The processing plant has consistently exceeded design specifications. 
  
Unloading Ore  
An expansion to the Chatree plant was completed in December 2003 and increased throughput from 1-1.3 million tonnes per year (Mtpa) to 2 Mtpa, above the design capacity of 1.8 million tonnes per year. This expansion was completed on time and under budget.

Installation of a pebble crusher increased plant capacity to 2.4 Mtpa in June 2006. A further expansion to 5 Mtpa is planned for 2009-2010 to significantly increase gold production from new mining areas at Chatree North.

Conventional open pit mining methods are used at Chatree to extract gold ore from open pits.

Mining and haulage costs are critical items in open pit operations. Chatree introduced a local Thai earthmover to contract mining in 2001. This local Thai mining contractor, Lotus Hall, has then expanded to other operations in Laos and Thailand. This has resulted in significant business for local enterprises. This contract was updated in 2007 to allow for a new and expanded mining fleet, supported by Caterpillar, for increased production from the Chatree North mining areas.

Processing
Since commencing operations throughput has consistently exceeded the design capacity of the plant. The ore is passed through a jaw crusher where it is crushed down to less than six inches in size and then conveyed to a crushed ore stockpile which holds one week’s supply of plant feed.

Crushed ore is fed into a semi autogenous grinding (SAG) mill and ball mill where it is ground to the consistency of very fine sand (minus 75 micron size) and pumped to the cyclone tower prior to entering the cyanide leach (CIL) tanks.
  
Pouring gold   
Gold and silver is leached from the ore by cyanide and is absorbed onto carbon grains.

The gold bearing carbon is collected and the metals are stripped from it and then passed through an electrowinning cell in which the metal is electroplated onto the cathode. The metal is recovered as sludge and is dried and smelted in a gas furnace before pouring into gold/silver bars.

Cyanide and water is recycled as much as possible with any excess cyanide being destroyed prior to disposal with the tailings (the residual fine ground rock) into the tailings storage facility. Cyanide levels have been historically around 5 ppm total cyanide upon entering the storage facility which is similar to levels found in a cup of instant coffee.

The gold/silver bars are shipped to a refinery in Hong Kong for final separation into saleable gold and silver (i.e. 99.999 fine gold).

Geographical Spread

Thailand - Chatree gold mine

Board of Directors and Key Management

Ross Smyth-Kirk B Com, CPA, ASIA

Non-Executive Chairman

Ross Smyth-Kirk was a founding Director of the former leading investment management company, Clayton Robard Management Limited and has had extensive experience over a number of years in investment management including a close involvement with the minerals and mining sectors. He was appointed to the Board on 29 November 1994 and has been a Director of a number of companies over the past 26 years. Ross recently became Chairman of the Australian Jockey Club (AJC).

Gavin Thomas, BSc FAusIMM

Managing Director and Chief Executive Officer

Gavin has had a successful career in developing mining companies from the exploration phase into mid-tier gold and/or copper production entities. He has over 32 years of international experience in exploring for, evaluating, developing, operating and reclaiming mines in North America, South America, Australia, the Southwest Pacific, Asia and Europe. Amongst other things he was credited with the discovery of the Lihir gold deposit in Papua New Guinea the largest gold deposit in the world. In particular he has extensive experience in Thailand and South America. Gavin is currently a director of Mercator Minerals Limited.

Craig Carracher LLB (Sydney), BCL (Oxford)

Non-Executive Director

Mr Carracher brings considerable relevant Thai experience to Kingsgate having been managing partner of an international law firm in Thailand for many years. His wide experience in Asian business circles will bring value to the Company and his knowledge of mining and resource work will be beneficial. He was appointed to the Board on 16 November 2007. Craig is currently an Alternate Director of the ASX listed Sunland Group and a director of Ellerston Capital Ltd, the manager of the ASX listed Ellerston GEMS Fund. Craig is based in Asia managing private equity investments across the region including in Thailand.

John Falconer FCA, ASIA

Non-Executive Director

John Falconer is a Fellow of the Institute of Chartered Accountants in Australia and an Associate of the Securities Institute of Australia. He is principal of Carbone Falconer & Co, a firm of Chartered Accountants practising in Sydney, whose client base includes small publicly listed companies as well as a number of successful family businesses. He is Director of TZ Limited and Tarragon Property Fund.

Peter McAleer B Com (Hons), B L (Kings Inns - Dublin - Ireland)

Non-Executive Director

Peter McAleer is Chairman of Westmag Limited and a Director of Kenmare Resources Plc (Ireland) and Kalahari Diamond Resources PLC (England). Previously, he was a Director and Chief Executive Officer of Equatorial Mining Limited and a Director of Mineral El Tesoro (Chile). He has been an Executive Director of Whim Creek Consolidated NL, Austwhim Resources NL and The Northgate Group of Companies (Canada). He has been involved in the discovery, and/or successful development, of over 10 base and precious metal deposits in Europe, Australia, South America and North America.

Company Address Suite 801 Level 8 14 Martin Place Sydney, Australia NSW 2000 Telephone: 61 2 8256 4800 Facsimile: 61 2 8256 4810 Email: info[at]kingsgate.com.au Website: http://www.kingsgate.com.au

Capital 93 million shares outstanding, 9 million options

Year End 31 December

Major Shareholders

JABRE Capital Partners	7.51%
UBS Nominees	9.35%
Gold 2000 Limited	7.44%

Related News

04/06/09 - Kingsgate Is Back On Track With Its Thai Gold Projects, And Australian Brokers Are Struggling To Keep Up
19/11/08 - After A Turbulent Twelve Months, Kingsgate Consolidated Gets Down To The Business Of Producing Gold Profitably
03/06/08 - Kingsgate Gets Ready To Expand If The Thai Government Lives Up To Expectations

Most Recent Statement

11/05/09 - High Grade Gold in Chatree North
20/04/09 - March 2009 Quarterly Report
14/04/09 - Business as Usual at Chatree Mine
06/04/09 - Change in substantial holding
06/04/09 - Appendix 3B
23/03/09 - Change of Director`s Interest Notice