Way Linggo

This Project Summary was last updated 2009-07-29 07:47:34.

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.

NEWS FLOW...

October 30, 2009

Quarterly Report

Underground mine development and plant construction activities progressed.

Diamond drilling exploration programme underway with 3 rigs on site.

Underground development face channel sampling results along trend of the North Vein ore bodies include:

• 112 metres grading 20.4 g Au/t and 305 g Ag/t
• 90 metres grading 33.5 g Au/t and 414 g Ag/t
• 43.8 m grading 27.5 g Au/t and 393 g Ag/t

6,482 tonnes of ore grading 20.6 g Au/t and 274 g Ag/t already stockpiled on the surface.

July 29, 2009

Quarterly Report

Underground mine development and plant construction activities accelerated following Kingsrose’s successful $20 million capital raising.

Planned project production rate has been doubled to 400 tonnes per day. Process plant design revision for new production rate and mine upgrade planning are well advanced.

Underground diamond drilling exploration programme underway.

Underground development Face channel sampling results include:

• 104 metres grading 20.6 g Au/t and 323 g Ag/t
• 42 metres grading 22.2 g Au/t and 262 g Ag/t
• 14.4 metres grading 32.3 g Au/t and 225 g Ag/t
• 39.4 metres grading 15.5 g Au/t and 289 g Ag/t

4,075 tonnes of ore grading 18 g Au/t and 245 g Ag/t already stockpiled on the surface.

May 13, 2009

$20m placement completed successfully

Kingsrose Mining Ltd is pleased to announce that it has raised $20m via the placement of 100,000,000 fully paid ordinary shares at 20 cents per Share to clients of Southern Cross Equities.

The proceeds shall be applied towards:

• Completion of construction of the mine at the Way Linggo Gold project in Indonesia
• To fund repayment of the loans pursuant to the terms of the Loan Arrangements Deed pursuant to which the Company has obligations to fund the repayment of various loans made to its wholly owned subsidiaries connected to the Project.
• To fund site exploration during the construction phase for the Project; and
• General working capital requirements.

March 17, 2009

Way Linggo Gold Project Update - March 2009

September 10, 2008

Way Linggo Gold & Silver Project Update

All parties involved in the proposed acquisition of the advanced high grade Way Linggo gold/silver project in South Sumatra, Indonesia have executed agreements relating to the acquisition by the Company of an 85% interest in the Project.

Completion of the acquisition is subject to a number of conditions precedent (which must be met by 30 November 2008 or such other date as may be agreed) including:

• approval by the Company’s shareholders;
• completion by the Company of due diligence to its satisfaction; and
• the Company receiving commitments for funding in the sum of $15 million, (which will be applied in connection with construction of the mine and repayment of loans made and expenses incurred in connection with the Project).

April 28, 2008

Acquisition of gold/silver project in Sumatra, Indonesia

Kingsrose Mining Limited (ASX: KRM) is pleased to announce that it has signed a Letter of Intent to acquire an 85% interest in the advanced Way Linggo gold/silver project, located in South Sumatra, Indonesia.

Way Linggo is a high grade underground gold and silver mining project currently under construction.

The Way Linggo project is expected to produce approximately 30,000 ounces gold equivalent per annum at cash costs well under US$400/oz Au Eq.

On current reserves, a mine life of 6 years is projected (JORC compliant (as at 1997) probable mining reserve of 416,000 tonnes grading 9.2 g/t Au and 146 g/t Ag for recovered metal of 111,000 oz Au and 1,560,000 oz Ag). However the 10,540 hectare Contract of Work area has considerable exploration potential and ongoing exploration to extend the mine life will be a priority for Kingsrose.

KRM’s consideration for the acquisition comprises the issue of 42.5 million KRM shares and the repayment of loans totaling approximately A$4 million to Icon shareholders. This loan repayment represents the funds invested to date into mine and site infrastructure. The total value of the shares to be issued at the current VWAP share price of 27 cents over the past 30 days, values the equity component at A$11.5 million.

KRM also commits to fund completion of the project through to production. This is estimated at approximately A$8 million.