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KGL RESOURCES LIMITED — Capital/Financing Update 2012
Jun 26, 2012
65179_rns_2012-06-26_7bd61a57-7e4f-457c-820d-415229a10ef2.pdf
Capital/Financing Update
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27 June 2012
Australian-based Kentor Gold Limited (ASX: KGL) is entering the ranks of operating gold mining companies in 2012. The Company is progressing a pipeline of advanced projects in Australia and the Kyrgyz Republic.
The Murchison Gold Project in Western Australia -scheduled to commence high grade gold mining at the Burnakura plant in mid-2012, with the potential to add goldcopper production from the neighbouring Gabanintha deposit.
The high grade, very low cost Andash Gold-Copper Project in the Kyrgyz Republic – development-ready, awaiting site access and targeting 2013 to commence production at 70,000 oz gold and 7,400 tonnes copper pa for an initial six years, with high potential for expansion.
The Jervois Copper-Silver-Gold Project in the Northern Territory – targeting 2014 startup following current studies into developing the high grade copper-silver resource with potential for gold, magnetite and other base metals.
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Issued capital:
106.2 million ordinary shares 5.8 million unlisted options
Market Capitalisation
26 June 2012: $72 million
Kentor Gold achieves further high grade drilling results at Murchison Gold Project
-
New drilling intercepts at NOA 7&8 include:
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4m @ 5.8 g/t gold from 63m (Hole 12BNRC0262)
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11m @ 4.0 g/t gold from 117m (Hole 12BNRC0260A)
Kentor Gold Limited (“Kentor Gold” or “the Company”) has now completed the planned drilling program at NOA 7&8 intercepting further high grade gold during RC drilling at the Murchison Gold Project in Western Australia.
Announcing the results, Kentor Gold Managing Director Simon Milroy said:
“The NOA 7 and 8 pits are not currently part of the phase 1 mine plan. The recent exploration results in conjunction with the historical exploration results (Figure 2 and Tables 3, 4 and 5) demonstrate that the mineralised zone is continuous from the base of the NOA 7 pit to a depth of approximately 200m below the base of the existing pit.”
“Resource modelling will now commence, followed by pit optimisation and pit design with the aim of adding the NOA 7 and 8 resources into the mine plan. The existing pits were only mined to a depth of 30 to 60 m from surface. Mineralisation remains open down dip and along strike to the north.”
The NOA 7 and 8 pits are located approximately 2km north of the Burnakura processing plant.
The Murchison Gold Project comprises the Burnakura gold and Gabanintha gold-copper sites approximately 50km south of Meekatharra. Kentor Gold is proceeding with Phase 1 of a four-phase development program at Murchison.
Kentor Gold Limited
www.kentorgold.com.au
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Production is scheduled to commence at Burnakura at a rate of 24,000 oz gold per year, with planning for an expansion next year underway. Initial production will come from the Lewis and Reward pits which are located approximately 3.5 km south of the processing plant at Burnakura (see Figure 3).
Construction of the upgraded CIL plant is nearing completion. Wet commissioning of the CIL plant commenced on the 25th June, it is anticipated that milling of ore will commence during the first week in July. A total of 12,000 tonnes of high grade ore (4.2 g/t) have been crushed in preparation for commissioning of the mill (Figure 4).
For further information contact:
Mr Simon Milroy Managing Director Phone: (07) 3071 9003 Email: [email protected] Mr. David Waterhouse Investor Relations Phone (03) 9670 5008 Email: [email protected]
Kentor Gold Limited
www.kentorgold.com.au
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Figure 1 Plan of NOA 7&8 displaying Kentor drill hole collars
Kentor Gold Limited
www.kentorgold.com.au
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Figure 2 Longitudinal section looking west through NOA 7&8 with contours of gold grade x interval width
Kentor Gold Limited
www.kentorgold.com.au
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Figure 3. Location Plan
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Figure 4. Murchison processing plant with crushed ore in the background
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27 June 2012
Kentor Gold Limited
www.kentorgold.com.au
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Table 1. Significant Assay results for NOA 7&8 RC drilling
| Hole ID | From (m) | To (m) | Interval (m)* | Gold g/t |
|---|---|---|---|---|
| 12BNRC0260A | 117 | 128 | 11 | 4.0 |
| 12BNRC0261A | 61 105 |
62 108 |
1 3 |
1.8 1.1 |
| 12BNRC0262 | 63 | 67 | 4 | 5.8 |
*True width is approx. 85% of down hole interval
Table 2 Significant assay results from Kentor drilling at NOA 7&8 announced previously (25[th] May 2012)
| Hole ID | From (m) | To (m) | Interval (m)* | Gold g/t |
|---|---|---|---|---|
| 12BNRC0162 | 136 | 137 | 1.0 | 11.0 |
| 12BNRC0173 | 190 203 |
192 209 |
2.0 6.0 |
13.7 4.7 |
| 12BNRC0175 | 160 | 167 | 7.0 | 5.2 |
| 12BNRC0221 | 255 | 260 | 5.0 | 4.3 |
| 12BNRC0222 | 226 247 |
227 253 |
1.0 6.0 |
35.2 8.3 |
| 12BNRC0223 | 247 265 274 305 |
250 including 268 279 308 |
3.0 1.0 3.0 5.0 3.0 |
13.9 36.1 4.5 3.7 3.2 |
| 12BNRC0224 | 177 | 181 | 4.0 | 1.7 |
| 12BNRC0225 | 215 | 218 | 3.0 | 0.8 |
| 12BNRC0229 | 176 | 184 including |
8.0 1.0 |
9.9 40.8 |
| 12BNRC0230 | 152 | 165 | 13.0 | 3.3 |
*True width is approx. 85% of down hole interval
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27 June 2012
Kentor Gold Limited
www.kentorgold.com.au
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Table 3 Historical drilling results NOA 7
| Reference | Hole ID | From (m) | To (m) | Interval (m)* |
Gold g/t |
|---|---|---|---|---|---|
| 7A | 95FCRC0792 | 29 | 36 | 7 | 3.2 |
| 7B | 95FCRC0793 | 48 | 53 | 5 | 3.1 |
| 7C | 95FCRC0797 | 46 | 58 | 12 | 3.1 |
| 7D | 95FCRC0798 | 66 | 74 | 8 | 3.1 |
| 7E | 95FCRC0803 | 67 | 69 | 2 | 4.6 |
| 7F | 96FCRC0900 | 59 | 75 | 16 | 5.8 |
| 7G | 96FCRC0902 | 86 | 89 | 3 | 7.5 |
| 7H | 96FCRC0905 | 33 | 36 | 3 | 3.6 |
| 7I | 96FCRC0906 | 50 | 57 | 7 | 2.8 |
| 7J | 96FCRC0907 | 69 | 73 | 4 | 1.8 |
| 7K | 96FCRC0909 | 64 | 65 | 1 | 1.53 |
| 7L | 96FCRC0913 | 54 | 58 | 4 | 1.8 |
| 7M | 96FCRC0992 | 91 | 94 | 3 | 2.6 |
| 7N | 96FCRC1001 | 72 | 75 | 3 | 4.8 |
| 7O | 96FCRC1002 | 40 | 48 | 8 | 2.8 |
| 7P | 96FCRC1006 | 75 | 81 | 6 | 10.3 |
| 7Q | 96FCRC1007 | 76 | 79 | 3 | 16.3 |
| 7R | 96FCRC0804 | 116.3 | 118.3 | 2 | 6.7 |
| 7S | 96FCDH0035 | 136.1 | 138.1 | 2 | 7.1 |
| 7T | 96FCDH0036 | 130.3 | 135.3 | 5 | 2.9 |
| 7U | 96FCDH0037 | 111.7 | 114.7 | 3 | 8.5 |
| 7V | 97FCDH0050 | 159.3 | 160.3 | 1 | 3.8 |
| 7W | 97FCDH0051 | 161.2 | 162.7 | 1.5 | 1.7 |
| 7X | 97FCDH0052 | 167.2 | 172.9 | 5.7 | 4 |
| 7Y | 97FCDH0053 | 69 | 78 | 9 | 5 |
| 7Z | RC06BU014 | 89 | 101 | 12 | 1.4 |
| 7AA | 7NOA0007 | 136 | 142 | 6 | 2.8 |
| 7BB | 7NOA0008 | 103 | 105 | 2 | 3.1 |
| 7CC | 7NOA0009 | 135 | 138 | 3 | 2.1 |
Table 4 Historical drilling results between NOA7&8
| Reference | Hole ID | From (m) | To (m) | Interval (m)* | Gold g/t |
|---|---|---|---|---|---|
| A | 96FCRC0886 | 54 | 57 | 3 | 6.1 |
| B | 96FCRC1008 | 66 | 73 | 7 | 2.3 |
| C | 97FCDH0054 | 136 | 139 | 3 | 3.2 |
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27 June 2012
Kentor Gold Limited
www.kentorgold.com.au
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Table 5 Historical drilling results NOA 8
| Reference | Hole ID | From (m) | To (m) | Interval (m)* | Gold g/t |
|---|---|---|---|---|---|
| 8A | 97FCDH0056 | 115.9 | 125.4 | 9.5 | 4.2 |
| 8B | 97FCDH0057 | 117.5 | 119.5 | 2 | 6.7 |
| 8C | 97FCDH0084 | 173.9 | 178.4 | 4.5 | 8 |
| 8D | 7NOA0001 | 146 | 150 | 4 | 11.1 |
| 8E | 7NOA0002 | 189 | 198 | 9 | 4 |
| 8F | 7NOA0003 | 149 | 154 | 5 | 5.7 |
| 8G | 7NOA0005 | 182 | 188 | 6 | 8.3 |
| 8H | 7NOA0006 | 89 96 |
93 103 |
4 7 |
4.5 2.5 |
| 8I | 7NOA0011 | 190 202 |
192 208 |
2 6 |
3.9 20.5 |
| 8J | 7NOA0013 | 191 | 196 | 5 | 5.4 |
| 8K | 7NOA0015 | 94 | 104 | 10 | 1.6 |
| 8L | 7NOA0016 | 179 | 189 | 10 | 3.8 |
| 8M | 7NOA0017 | 160 | 166 | 6 | 7.6 |
| 8N | 7NOA0018 | 126 | 130 | 4 | 1.9 |
| 8O | 7NOA0019 | 170 | 180 | 10 | 6.7 |
| 8P | 7NOA0020 | 170 | 173 | 3 | 5.4 |
| 181 | 183 | 2 | 4.4 | ||
| 8Q | 7NOA0021 | 126 | 130 | 4 | 2.9 |
| 8R | 7NOA0022 | 154 | 157 | 3 | 1.3 |
| 8S | 7NOA0023 | 195 | 202 | 7 | 4.5 |
| 8T | 7NOA0024 | 178 | 183 | 5 | 13.1 |
| 8U | 7NOA0025 | 135 | 137 | 2 | 1.9 |
| 8V | 7NOA0026 | 131 137 |
134 138 |
3 1 |
2.9 10.5 |
| 8W | 7NOA0027 | 132 | 134 | 2 | 1.2 |
| 8X | 7NOA0028 | 139 | 141 | 2 | 1.7 |
| 8Y | 7NOA0029 | 224 | 226 | 2 | 4.5 |
| 8Z | 7NOA0030 | 242 | 247 | 5 | 2.4 |
| 8AA | 7NOA0033 | 268 | 276 | 8 | 2.9 |
| 8BB | 7NOA0034 | 231 | 245 | 14 | 3 |
| 8CC | 8NOAD052 | 178 | 180 | 2 | 13.8 |
The information in this report that relates to exploration results for Murchison is based on work completed by Mr Keith Mayes who is a full-time employee of Kentor Gold Limited and a Fellow of the Geological Society of London. Mr Mayes has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Mayes has consented to the inclusion of this information in the form and context in which it appears in this report.
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27 June 2012