RSS UpdatesCompany Information for Kingsrose Mining Limited
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 ASX; KRM
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Company Statement
Kingsrose Mining Limited is a gold mining company with projects located in Australia and Sumatra in Indonesia specialising in high grade, narrow vein underground mining. The company listed in 2007. Its current focus is the high grade underground Way Linggo gold-silver project in Sumatra which the company acquired in January 2009, and is currently on ramp up to development.
Existing revenue is derived from the Sand Queen mine at Comet Vale which it shares in a 50:50 joint venture with Reed Resources (RDR).
Current Operations
Way Linggo
In January 2009, Kingsrose’ shareholders approved the acquisition of 85% of the advanced Way Linggo high grade, underground gold/silver mining project, located in Lampung Province, Southern Sumatra, Indonesia.
The Way Linggo Project comprises the development of an underground mine to exploit, initially, a high-grade epithermal quartz vein, known as the "North Vein". The Project is at an advanced development stage and is located in a highly prospective epithermal geological setting. Various other highly prospective targets have been identified and will form the basis of an extensive exploration program, both near mine and regionally.
The Project is undertaken by the 85% subsidiary of the Company, PT Natarang Mining, pursuant to a 4th generation Contract of Work agreement with the Indonesian government.
JORC Total Resource
- 669,000t @ 8.44g/t Au, 129g/t Ag
- 10.6g/t gold equiv., 227,600 gold equiv. oz
Mining
- Commenced on 2 levels 1020mRL, 1065mRL
- Strongly Positive Reconciliations
- Approx 7000t @ 18g/t+ Au, 150g/t Ag stockpiled
- Expect 15-20,000t stockpiled prior to plant start
Plant
- Under construction – expected cost $US12.5m
- 140,000 tpa conventional cyanide leach with
- Merril Crowe zinc precipitation for silver
- Metallurgically Simple > 90% recovery
Exploration
- Near Mine commenced – 2 rigs
- Regional – reconnaissance with many targets
Expected project
- Target Resource 1Moz +
- Plant capacity 140,000tpa
- Expected Head Grades 12g/t Au, 180g/t Ag
- Plant Commission end March 2010
- 2010 Prod’n – 30,000oz @ US$200/oz cash cost* (*after silver credit)
- 2011 Prod’n 50,000oz @ US$200/oz cash cost*
- 2012 Prod’n 50,000oz @ US$175/oz cash cost*
Comet Vale
The Company’s main asset at the time of listing in December 2007 was its share of gold production from the Sand Queen mine at Comet Vale.
By participating in the Comet Vale Joint Venture with Reed Resource Ltd, the Company’s objective is to fulfil its mine development and gold production obligations in order to earn 50% ownership of the Comet Vale tenements, located approximately 100kms north of Kalgoorlie.
The Comet Vale Joint Venture’s other partner is Reed Resource Ltd (50%), holder of the Comet Vale tenement package. Kingsrose is responsible for all costs of underground mining and development whilst Reed Resources Ltd is responsible for all ore transport and treatments costs as well as tenement management. Reed Resources is also responsible for all surface exploration of the tenements therefore the Company's costs are limited to any underground exploration, mine development and ore production costs.
Kingsrose is entitled to 60% of gold produced below a depth of 107 metres from the collar of the Sand Queen Main Shaft (i.e., below the 3 Level) and 50% of gold mined above this level. Kingsrose is required to produce 25,000 ounces of gold by the 31st May 2010 to earn it's registered interested in the tenements, totalling approximately 40km2.
In October 2009 Kingsrose announced its intentions to exit Comet Vale JV on favourable terms
- Reed Resources will pay Kingsrose A$1M by October 31, 2009.
- Kingsrose will continue to earn gold production, as per the current arrangement, from now until May 31, 2010.
- Kingsrose will receive A$1M in cash in exchange for its mining equipment by June 30, 2010.
- Kingsrose will receive A$2M equivalent in Reed Resources Ltd shares by June 3, 2010.
Geographical Spread
Australia and Idonesia
Board of Directors and Key Management
| John C. Morris, Executive Chairman |
Mr. Morris has over 36 years experience in exploration, project development and management of public listed resource companies. He has held prior Directorships in a number of gold and base metals public companies in Australia and overseas including Forsayth NL, Uruguay Mineral Exploration Plc and Amerisur Resources Plc (formerly Chaco Resources Plc/Gold Mines of Sardinia Plc) |
| J. William (Bill) Phillips, Non-Executive Director |
Mr. Phillips has over 30 years experience in mining contracting and mine management, much of which has been gained in Western Australia. He is highly regarded as a leading specialist in underground narrow vein mining. He has managed or been instrumental in the successful development of 16 mines either in the role of contractor or as owner/shareholder. Mr. Phillips currently oversees mining and production at Medusa Mining Limited’s Co-O gold mine and processing plant in the southern Philippines which produces approximately 40,000 ounces of gold per annum. He is also providing valuable input into the underground development at both the Comet Vale Gold Mine and mine development of PT Natarang Mining’s Way Linggo gold/silver mine located in Sumatra, Indonesia. |
| Dr Michael Andrews, Non-Executive Director |
Dr Andrews is a geologist who has spent over 25 years undertaking global exploration programmes covering gold, silver, nickel, zinc, copper and uranium. He has managed mine geology programmes and has held senior exploration positions, including heading the Teck Corporation-MIM Gold joint venture which had 13 gold and copper projects in Indonesia, and being chief geologist for the Mt Muro gold-silver project on Indonesia’s Kalimantan. |
| Timothy Spencer, Finance Director |
Mr Spencer has over 15 years experience in precious and base metal markets, from mining to refining and bullion distribution to in-depth precious metals market analysis. After completion of an Economics degree Mr. Spencer has worked in various accounting, treasury, finance, analytical and financial advisory roles. These have been with two gold mining companies (including the Furtei gold project), a large gold refining and trading enterprise and a leading precious metals research consultancy. His most recent role involved providing strategic hedging advice on metals and mainstream derivative products to a diverse range of mining clients, including the development of policies, hedging strategies, pricing and execution, project locations |
Company AddressSuite 3, 16 Kearns Crescent
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Additional Address/Key ContactKalgoorlie Office: |
CapitalOrdinary Shares
219,300,020 (includes 42,500,000 shares in escrow until 28 February 2010)
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Year End30th June |
Major Shareholders
| Share Register Mix: 61.37% Local, 38.63% Overseas | |
| Largest Shareholders: | |
| Icon Enterprises Ltd | 19.38% |
| KRM (WA) Pty Ltd | 9.56% |
Related News
11/02/10 - A Small, But Perfect Package: Kingsrose Nears Production At The High Grade Way Linggo Gold Project In IndonesiaMost Recent Statement
29/07/10 - Quarterly Activities Report - period ended 30 June 201029/07/10 - Appendix 5B - Quarterly Cashflow Report - 30 June 2010
26/05/10 - Update on Company Activities
30/04/10 - Quarterly Activities Report - Quarter ended 31 March 2010
30/04/10 - Appendix 5B - Quarter ended 31 March 2010
08/04/10 - RDR: Comet Vale Gold - New Mineral Resource Estimate