Way Linggo

This Project Summary was last updated 2011-03-16 19:46:15.

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...

December 14, 2011

Bell Potter Research

December 7, 2011

Talang Santo Maiden Resource

Maiden Mineral Resource Estimate at Talang Santo totals 879,000 tonnes at 5.89 g/t gold and 14.63 g/t Silver for a contained 166,400oz of gold and 413,000 oz silver.

The Talang Santo ore system remains open along strike and at depth and 6 (six) rigs continue to drill test the system.

The Total Mineral Resource for the Way Linggo Gold Project (Kingsrose 85%) increases to 1,589,000 tonnes at 7.89g/t Gold and 68.66 g/t Silver containing 396,430 ounces of gold and 3,489,800 ounces of silver.

October 5, 2011

Further High Grade Incercepts at Talang Santo

Recent drilling has returned further high grade gold and silver assays from its Talang Santo Prospect approximately 7 km north of its operating Way Linggo Gold Mine.

Kingsrose has previously reported high-grade gold and silver intercepts from the first phase of drilling at Talang Santo. The latest drilling results indicate that grade is increasing at depth and reveals epithermal rock textures which indicate that potential bonanza grades from within the postulated boiling zone of the epithermal system may still be deeper.

The best of the results from the latest round of drilling include:

DDH208
10.65m @ 8.27 g/t Gold and 11.3 g/t Silver from 214.5m
including 1.25m @ 30.6 g/t Gold, 40 g/t Silver from 215.75m)

DDH226
4.65m @ 16.31 g/t Gold and 47.4 g/t Silver from 305.6m
(including 1.75m @37.9 g/t Gold and 117 g/t Silver from 308.5m)

DDH233
4.95m @ 17.56 g/t Gold and 33.6 g/t Silver from 271.2m
(including 0.95m @ 51.81 g/t Gold and 93.16 g/t Silver from 275.2m)

September 8, 2011

SAG Mill installation and commissioning at Way Linggo

The Directors are pleased to announce that the installation and commissioning of the SAG mill at the Company’s Way Linggo Gold Project, Sumatra, Indonesia, has been successfully completed.

June 29, 2011

High grade gold discovery at Way Linggo Project

Drilling at the Talang Santo prospect has located significant commercial grade intercepts within the sparsely tested system. Significant intercepts from the last two holes include:

DDH199 returning

1.1m @ 46.9 g/t Au and 87.9 g/t Ag from 176.6 (including 0.5m 98.9 Au and 164.9 g/t Ag), and
4.35m @ 10.0 g/t Au and 25.2 g/t Ag from 195.85m (including 0.95m @ 29.01 g/t Au and 42.6 g/t Ag)

DDH 194 returning

2.4m @ 7.5 g/t Au, 35.5 g/t Ag from 109.3m (including 1.0m @ 14.95 g/t Au and 74.2 g/t Ag), and
3.9m @ 9.18 g/t Au, 21.2 g/t Ag from 115.5m (including 0.6m @ 19.38 g/t Au and 22.0 g/t Ag)

April 29, 2011

Quarterly Activities Report

The ramp-up to steady state production at Way Linggo continued during the quarter with 10,463 ounces of gold and 123,774 ounces of silver produced.

Cash operating costs decreased to US$21 per gold ounce after silver credits due to continued improvements in productivity and firming silver prices.

Project Cash Operating Surplus (EBITDA) reached US$12.4m for the Quarter.

Tonnes mined increased by 19% over last quarter as stoping was commenced and contributed to daily production sources. Mill throughput increased by 59% over the previous quarter due to further debottlenecking of the plant and a 22% increase in plant availability.

Exploration activity increased and by the end of the quarter there were seven exploration rigs in operation. Significant intercepts received at three new prospects in the northern area of the landholding (Talang Toha, Talang Santo and Talang Samin) ranged from 0.5 g/t up to 25.1 g/t for gold and 1.0 up to 1,048 g/t for silver.

Updated structural interpretation of the northern area suggests all three targets are potentially connected as part of a larger system that is still open in all directions.

April 11, 2011

Unscheduled Mill Stoppage - Way Linggo Mine

During a scheduled inspection of both ball mills at the beginning of the month, it was noted that excessive wear to the liners warranted their immediate replacement and the Company has decided not to operate the plant and risk damage to the mills until new liners can be fitted.

December 21, 2010

Silver Financing

Kingsrose is pleased to announce that it has successfully arranged a prepaid silver forward sale transaction with Credit Suisse International raising A$13 million and allowing Kingsrose to repay various outstanding loans totalling A$10 million.

September 23, 2010

Buy Back of Royalty and Restructure of Loans

An agreement has been reached with Aurora Gold Limited (“AGL”) to relinquish and terminate AGL’s right to receive a 1.85% net smelter return royalty (capped at US$3.5m) on gold and silver production from KRM’s 85% owned Way Linggo Gold Project in Sumatra, Indonesia.

August 17, 2010

Way Linggo Update - August 2010 (Part 1)

August 17, 2010

Way Linggo Update - August 2010 (Part 2)

August 13, 2010

Kingsrose pour first gold/silver from Way Linggo

One of the world’s lowest cost gold mines started production earlier today when Australian-listed Kingsrose Mining (ASX:KRM) poured its first bars at the Way Linggo mine on the Indonesian Island of Sumatra.

Annual output is expected to be at an initial rate of 45,000 ounces of gold at a cash cost of $US147 an ounce which is more than $US1000 per ounce lower than the current world gold price.

August 9, 2010

Commissioning Update Way Linggo

This is a summary of the commissioning status of the various plant processes:

Crushing circuit – 100%
Milling circuit – 100%
Leach circuit – 100%
CCD thickener circuit – 100%
Merrill Crowe circuit – working but flow rate modifications not yet finalised
Gold Room – 100%

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.

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