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KINGSROSE MINING LIMITED Interim / Quarterly Report 2013

Oct 25, 2012

65202_rns_2012-10-25_84a747d0-a415-49d2-a04f-579f0b1b4efc.pdf

Interim / Quarterly Report

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**KINGSROSE

MINING
LIMITED
|
QUARTERLY
REPORT For
the
period
ending
30
September
2012**

**KEY

POINTS**

Corporate Snapshot (as at

30/09/12)

ASX
Code: KRM Share
Price: $1.17 Issued
Capital: 289,318,617
(KRM) Listed
Options: 1,206,413
(KRMO) Market
Capital: $338.5m Cash
&
Bullion: $10.7m

Board & Management

John
Morris Chairman Chris
Start Managing
Director Tim
Spencer Finance
Director Bill
Phillips Director Andrew
Spinks Director

Company Highlights

  • § Flagship
    project
    85%
    owned
    Way
    Linggo high
    grade
    Gold
    &
    Silver
    Project
    in Sumatra

  • § 2012
    production
    37,650
    ounces
    at
    cash cost
    US$254
    (after
    silver
    credits)

  • § Talang
    Santo
    resource
    increase
    by
    73%

  • § Extensional
    and
    resource
    definition drilling
    on
    going

  • § Maiden
    4c
    dividend
    declared
    in
    May 2012

    paid
    on
    4
    July
    2012

JORC RESOURCES WAY LINGGO PROJECT

Way
Linggo
mine:

527,480
@
11.71/t
Au
for
198,380
oz 527,480
@135.05/t
Ag
for
2,288,326
oz

Talang
Santo
mine
:

  • 1,660,980t
    @
    5.39g/t
    Au
    for
    166,400
    oz 1,660,980t
    @16.77g/t
    Ag
    for
    894,951oz

Total Resource:

  • 2.2Mt
    @
    6.91/t
    Au
    for
    485,869
    oz

  • 2.2Mt
    @
    45.28
    g/t
    Ag
    for
    3,183,278
    oz

  • Ø Way
    Linggo
    Gold
    Project
    (85%
    KRM)
    produced
    3,683
    oz
    of
    gold
    and
    34,416
    oz
    of
    silver (or
    4,238
    oz
    gold
    equivalent
    for
    the
    Quarter)

Jun 12 Qtr Sept 12 Qtr
Gold – oz 8,763 3,683
Silver – oz 100,427 34,416
Gold Equivalent – oz* 10,437 4,238
  • Gold
    equivalent
    oz
    was
    calculated
    by
    dividing
    the
    silver
    ounces
    by
    the
    silver:gold
    price
    ratio
    (average
    prices

  • received)
    added
    to
    the
    gold
    ounces
    produced.

  • Ø Cash
    costs
    restricted
    to
    $484/oz
    ($258/oz
    in
    June
    Quarter)
    with
    cost-­‐cutting measures
    partially
    offsetting
    impact
    of
    lower
    production.

  • Ø Total
    Project
    Resource
    (Way
    Linggo
    mine
    plus
    Talang
    Santo
    mine)
    increased
    by
    25% to
    485,869oz
    gold
    and
    3,183,278
    silver.

  • Ø Talang
    Santo
    Resource
    increased
    73%
    to
    287,489oz
    gold
    and
    894,951oz
    silver.

  • Ø Talang
    Santo
    operations
    suspended
    in
    September
    following
    fatality.

  • Ø Production
    at
    Talang
    Santo
    expected
    to
    resume
    in
    November
    with
    accelerated
    ramp-­‐ up
    scheduled
    to
    hit
    targeted
    annualised
    rate
    by
    end
    of
    March
    Quarter,

  • Ø Total
    Project
    production
    forecast
    to
    be
    ~30-­‐35,000oz
    in
    FY13.

  • Ø Cash
    and
    bullion
    of
    $10.7m
    at
    30
    September

  • Ø Drilling
    results
    during
    this
    quarter
    support
    the
    continuity
    of
    the
    high
    grade
    veins
    at Talang
    Santo
    with
    DDH-­‐388
    intercepting
    2.5m
    @
    11.2g/t
    gold
    and
    58.3
    g/t
    silver
    from 294.25m
    down
    hole.

  • Ø Numerous
    high-­‐grade
    intercepts
    were
    received
    from
    the
    Linggo-­‐Sapta
    area
    including

    • DDH
      356
      0.6m
      @
      15.9g/t
      Au;
      147.9g/t
      Ag
      from
      325.55m

    • DDH
      367
      0.6m
      @
      8.49g/t
      Au;
      50.3
      g/t
      Ag
      from
      101.70m
      and; 1.0m
      @
      7.47g/t
      Au;
      37.6
      g/t
      Ag
      from
      122.10m

    • DDH
      369
      1m
      @9.5g/t
      Au;
      56.5
      g/t
      Ag
      from
      14.70m
      and;

      • 1.2m
        @
        9.5g/t
        Au
        &
        56.5g/t
        Ag
        from
        117.50m

CONTACT DETAILS

Suite
9,
Level
2,
12

14
Thelma
Street West
Perth
WA
6005 T
+
61
8
9486
1149 F
+
61
8
9486
1151

  • E
    [email protected] W www.kingsrosemining.com.au

  • DDH
    383
    0.35m
    @
    29.32g/t
    Au;
    90g/t
    Ag
    from
    60.9m
    and;

    • 1.9m
      @
      4.87g/t
      Au;
      32.3
      g/t
      Ag
      from
      96.8m
      and;

    • 0.65m
      @15.1g/t
      Au;
      233.1g/t
      Ag
      from
      241.15

  • Ø Appointment
    of
    experienced
    geologist
    Mr
    Andrew
    Spinks
    to
    the
    Board
    as
    an Independent
    Non-­‐Executive
    Director
    following
    the
    resignation
    of
    Mr
    Peter
    Cook
    as
    a Non-­‐Executive
    Director.

www.kingsrosemining.com.au

1

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 37] intentionally omitted <==

WAY LINGGO PROJECT (85% KRM)

**OPERATIONS

SUMMARY**

The
table
below
summarises
the
Way
Linggo
Project
performance
for
the
Quarter:

==> picture [472 x 597] intentionally omitted <==

www.kingsrosemining.com.au

2

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

==> picture [269 x 162] intentionally omitted <==

Project Overview

Production
levels
at
the
Way
Linggo
mine decreased
as
anticipated
as
several
stopes
were completed
and
a
greater
proportion
of
ore
was sourced
from
sublevel
development.

The
projected
ramp-­‐up
of
mining
activity
at
Talang Santo
was
delayed
due
to
water
ingress
during development
of
the
underlay
shaft.
This
issue
was resolved
and
development
continued
when
the appropriate
pumps
were
sourced
and
installed
to allow
development
to
continue.

The
project
was
then
impacted
by
an
accident
in
the
Talang
Santo
mine
on
September
13
that
resulted
in
the
death
of
a mineworker.
As
a
result
of
the
accident,
operations
at
the
Talang
Santo
mine
has
been
temporarily
suspended.

Following
discussions
with
the
Indonesian
Mines
Department,
Kingsrose
expects
operations
to
resume
next
month.
In anticipation
of
this,
the
Company
has
been
making
preparations
to
accelerate
development
at
Talang
Santo
to
offset
in part
the
delays
caused
by
the
suspension.

These
measures
are
expected
to
see
Talang
Santo
reach
its
targeted
production
rate
by
the
end
of
the
March
Quarter, 2013.

Way Linggo Mine

The
Way
Linggo
mine
produced
10,868
tonnes
of
ore
at
a
grade
of
10.3g/t
gold
and
103
g/t
silver
during
the
Quarter. As
anticipated,
mined
tonnage
decreased
with
slower
mining
rates
due
to
old
stope
backfilling
activities.
The
backfill
is used
to
support
oxidised
zones
to
assist
in
remnant
mining
and
pillar
recovery.

Development
of
the
new
4
levels
continued
in
ore
and
will
allow
production
from
the
deeper
parts
of
the
mine.

It
is
anticipated
that
mining
rates
from
the
Way
Linggo
mine
will
continue
at
the
current
levels
and
that
the
proportion of
ore
sourced
from
Talang
Santo
will
significantly
increase
and
surpass
Way
Linggo.

Talang Santo Mine

Development
on
2
level
continued
during
the
Quarter
with
access
provided
via
the
adit
and
internal
winze. Development
in
ore
resulted
in
a
total
of
3,401
t
of
ore
mined
at
a
grade
of
7.1
g/t
gold
and
22
g/t
of
silver.

There
were
delays
in
the
completion
of
the
underlay
shaft
due
to
water
ingress
into
the
shaft,
which,
hampered activities
until
appropriate
pumps
could
be
sourced
and
installed.
The
shaft
has
now
been
completed
to
a
final
depth
of 100m
and
the
level
is
being
set
up
for
development
on
ore.
It
is
anticipated
that
ore
will
be
sourced
from
development on
the
3
level
within
a
month
of
the
temporary
mine
suspension
lifted.

During
the
Quarter
and
in
the
final
stages
of
shaft
development,
the
shaft
intersected
the
Mawi
vein.
Face
sampling
on the
East
panel
returned
1.4m
@
56.5
g/t
gold
and
156
g/t
silver
while
sampling
on
the
West
panel
returned
1.8m
@ 24.2
g/t
gold
and
65
g/t
silver.
These
results
are
shown
along
with
the
face
sampling
results
for
the
hanging
wall
vein from
last
Quarter
and
the
closest
drill
hole
intersections
are
shown
in
Figure
1.

As
Kingsrose
has
previously
advised,
the
wash-­‐out
of
gold/silver
bearing
acrylic
altered
clays
during
the
drilling
and
core preparation
process
make
estimation
of
grade
challenging
with
the
processing
of
development
ore
ultimately
providing the
most
accurate
grade
estimation.

www.kingsrosemining.com.au

3

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

Exposure
of
the
Mawi
Veins
to
date
revealed
significant
clay
bands
within
the
quartz
lodes
that
were
not
present (potentially
washed
out)
in
the
core
extracted
during
the
diamond
drilling
process.

Face
sampling
results
have
also returned
higher
than
expected
grades
than
originally
indicated
from
diamond
drilling
intercepts.
This
is
similar
to
what occurred
at
Way
Linggo
and
is
considered
responsible
for
grade
overcalls
in
the
heavily
clay
altered
parts
of
that
ore system.
Whilst
it
is
still
too
early
to
draw
any
definitive
conclusions,
Kingsrose
is
encouraged
by
this
and
considers
it vindicates
its
decision
for
early
mine
development
at
Talang
Santo.

==> picture [429 x 567] intentionally omitted <==

Figure
1

Talang
Santo
mine
shaft
progress

www.kingsrosemining.com.au

4

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

PROCESSING

Plant
throughput
for
the
Quarter
was
13,036
tonnes
at
a
head
grade
of
9.0
g/t
gold
and
89
g/t
silver.
Mill
throughput matched
mine
production
and
plant
mechanical
availability
remained
high
at
96.7%.

Metallurgical
recovery
rates
increased
again
with
95.0%
for
gold
and
87.8%
for
silver.
The
higher
recoveries
were
achieved with
the
lower
throughput
rates
providing
greater
circuit
residence
time
and
finer
grind
in
combination
with
the
operation of
the
new
PSA
oxygen
facility
and
the
6[th] CCD.

A
total
of
2,908
tonnes
of
ore
from
Talang
Santo
was
processed.
The
ore
was
blended
with
the
Way
Linggo
ore
as
it
was mined.
Gold
and
silver
recovery
were
not
affected
by
the
introduction
of
the
Talang
Santo
ore
which
supports
previous metallurgical
test
work
that
similar
metal
recovery
rates
to
Way
Linggo
ore
would
be
achieved
in
the
Way
Linggo processing
plant.

Gold
and
silver
production
for
the
Quarter
was
3,683
oz
of
gold
and
34,416
oz
of
silver
(4,238
oz
in
gold
equivalent).

==> picture [235 x 148] intentionally omitted <==

==> picture [242 x 148] intentionally omitted <==

EXPLORATION SUMMARY

During
the
Quarter
the
focus
of
exploration
activity
was
on:

  • Ø Completion
    of
    the
    updated
    Mineral
    Resource
    Statement.

  • Ø Infill
    and
    extensional
    drilling
    at
    Talang
    Santo,
    which
    is
    still
    remains
    open
    in
    all
    directions.

  • Ø Soil
    sampling
    at
    Talang
    Santo
    South,
    which
    has
    highlighted
    an
    anomalous
    zone
    as
    a
    target
    for
    future
    drilling.

  • Ø Extensional
    drilling
    at
    Linggo-­‐Sapta,
    which
    continues
    to
    return
    positive
    drill
    results.

The
following
table
summarises
key
physical
activity
statistics
for
the
quarter:

Exploration
Diamond drilling 14,347m
Stream traverses 22,948m
Ridge and spurs sample traverses 14,849
Drill core samples assayed 4,090
Rock chipsamples assayed 49
BLEG samples assayed 0

www.kingsrosemining.com.au

5

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

**Updated

Mineral
Resource**

The
latest
total
JORC-­‐compliant
Mineral
Resource
estimate
(as
at
June
30,
2012)
for
Talang
Santo
increased
by
73
per
cent to
287,489
ounces
of
gold
and
894,951
ounces
of
silver.
Furthermore,
over
59%
of
this
has
now
been
upgraded
into
the Indicated
category.

The
June
30,
2012
total
Mineral
Resource
for
the
Way
Linggo
mine
including
depletion
from
mining
and
an
allowance
for non-­‐recoverable
blocks
contains
198,380
ounces
of
gold
and
2,288,326
ounces
of
silver.

The
total
Project
ounces
have
increased
by
25%
to
485,869
ounces
of
gold
and
3,183,278
ounces
of
silver
as
at
30
June 2012.

The
Mineral
Resource
(as
at
30
June,
2012)
by
category
is
summarised
below:

Classification Deposit Tonnes Au g/t Ag g/t Au ounces Ag ounces
Measured Way Linggo 339,215 14.45 174.84 157,592 1,906,804
Indicated Way Linggo 174,145 6.30 61.09 35,273 342,036
Inferred Way Linggo 14,120 12.15 86.98 5,516 39,486
SUB-TOTAL Way Linggo 527,480 11.71 135.05 198,380 2,288,326
Indicated Talang Santo 863,625 6.19 16.25 171,873 451,200
Inferred Talang Santo 797,335 4.51 17.31 115,616 443,751
SUB-TOTAL Talang Santo 1,660,980 5.39 16.77 287,489 894,951
GRAND TOTAL
PROJECT 2,188,460 6.91 45.24 485,869 3,183,278

Notes

  • The
    figures
    quoted
    below
    represent
    the
    geological
    resource.
    No
    “Modifying
    Factors”
    have
    been
    applied
    as
    per
    the
    2004
    edition
    of
    the Australian
    Code
    for
    Reporting
    of
    Exploration
    Results,
    Mineral
    Resources
    and
    Ore
    Reserves
    (“JORC
    Code”).

  • For
    the
    Way
    Linggo
    resource
    estimation,
    the
    geology
    model
    was
    formed
    via
    the
    incorporation
    of
    geological
    mapping,
    production
    face
    sampling and
    drill-­‐hole
    data.
    In
    the
    main
    Way
    Linggo
    zone,
    grade
    estimates
    have
    been
    based
    upon
    development
    data
    only.
    Outside
    of
    the
    main
    ore
    body drill
    hole
    data
    has
    been
    the
    basis
    of
    grade
    estimates.
    For
    the
    Talang
    Santo
    resource
    estimation,
    the
    geology
    model
    was
    formed
    via
    the incorporation
    of
    geological
    mapping,
    face
    production
    sampling
    and
    drill
    hole
    data.
    Talang
    Santo
    grade
    estimates
    have
    been
    based
    upon development
    and
    drill
    hole
    data.

  • The
    void
    files
    used
    to
    deplete
    the
    respective
    models
    were
    current
    as
    at
    30
    June

  • The
    Classified
    Mineral
    Resource
    is
    reported
    above
    a
    2.5g/t
    Au
    cut-­‐off
    grade.

  • A
    top-­‐cut
    of
    150.00g/t
    Au
    and
    1,800g/t
    Ag
    was
    used
    during
    estimation
    at
    Way
    Linggo.
    A
    top-­‐cut
    of
    25.00g/t
    Au
    and
    75g/t
    Ag
    was
    used
    during estimation
    at
    Talang
    Santo.

  • At
    Way
    Linggo,
    the
    portion
    of
    the
    resource
    in
    the
    area
    above
    existing
    min
    development
    north
    of
    10,050mN
    is
    considered
    as
    Measured.
    Fans
    of drilling
    completed
    to
    circa
    900mRL
    allow
    the
    zone
    between
    the
    current
    base
    of
    mine
    development
    at
    930mPL
    and
    900mRL
    north
    of
    10,050mN to
    be
    considered
    Indicated.
    Drilling
    to
    the
    north
    of
    current
    development
    also
    allows
    the
    mineralisation
    north
    of
    the
    main
    ore
    body
    to
    be considered
    Indicated.
    The
    mineralised
    zones
    to
    the
    south
    of
    10,050mN
    are
    currently
    considered
    Inferred
    in
    those
    areas
    which
    have
    not
    been intersected
    by
    mine
    development,
    which
    in
    turn
    are
    considered
    Indicated.
    Mineralised
    zones
    peripheral
    to
    the
    main
    Way
    Linggo
    zone
    are primarily
    considered
    Inferred.

  • At
    Talang
    Santo
    the
    well-­‐drilled
    portion
    of
    the
    primary
    Mawi
    Vein
    and
    its
    two
    300o
    trending
    footwall
    structures
    are
    considered
    Indicated.
    The remainder
    of
    the
    Mawi
    Vein,
    the
    footwall
    structures
    and
    all
    other
    peripheral
    mineralised
    zones
    are
    considered
    Inferred.

  • Following
    a
    critical
    appraisal
    of
    all
    Measured
    resource
    blocks
    by
    the
    chief
    Geologist
    at
    the
    Way
    Linggo
    site,
    a
    decision
    was
    made
    to
    factor
    the resource
    down
    by
    15%
    to
    account
    for
    the
    non-­‐recoverability
    of
    mining
    pillars.

  • Note
    that
    small
    discrepancies
    may
    have
    occurred
    due
    to
    rounding.

**Talang

Santo**

The
recent
high
grade
intersections
remain
open
in
all
directions
and
there
is
very
good
potential
for
the
discovery
of further
epithermal
gold
veins
and
systems
in
the
area.

www.kingsrosemining.com.au

6

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

**Talang

Santo
-­‐
Mawi
and
Mawi
West**

Resource
definition
drilling
continued
with
a
focus
on
the
westerly
and
easterly
extensions
to
the
Mawi
Vein.
As
reported in
the
previous
quarter,
the
most
westerly
hole
drilled
in
the
system
to
date
is
Hole
DDH-­‐362
which
has
returned
two outstanding
intercepts;

  • 1.8m
    @
    33.59
    g/t
    Au
    &
    17.0
    g/t
    Ag
    from
    27.1m
    down
    hole
    and

  • 1.75m
    @
    19.11
    g/t
    Au
    &
    99.1
    g/t
    Ag
    from
    228.9m
    down
    hole.

Drilling
during
the
quarter
was
aimed
at
tracking
the
higher
grade
core
of
the
Central
and
Mawi
veins.
Results
indicated that
mineralization
continues
strongly
at
depth
and
down
plunge.

Better
intersections
recorded
during
this
quarter included:
(refer
to
Appendix
“A”
for
full
listing)

  • DDH-­‐372 2.2m
    @
    3.96g/t
    Au;
    12.7g/t
    Ag
    from
    124.55m

  • DDH-­‐377 1.65m
    @
    3.34g/t
    Au;
    4.12g/t
    Ag
    from
    164.60m

  • DDH-­‐379 3m
    @4.57g/t
    Au;
    23.8g/t
    Ag
    from
    269.30m

  • DDH-­‐388 2.5m
    @11.2g/t
    Au;
    58.3g/t
    Ag
    from
    294.25m

  • DDH-­‐393 1.2m
    @
    4.37g/t
    Au;
    13.45
    g/t
    Ag
    from
    345.3m

  • DDH-­‐396 0.25m
    @
    14.88g/t
    Au;
    22.93g/t
    Ag
    from
    261.6m
    and;
    1.7m
    @
    4.08g/t
    Au;
    7.91
    g/t
    Ag
    from
    261.6m
    and; 0.95m
    @
    4.89
    g/t
    Au;
    7.24g/t
    Ag
    from
    314.9m

==> picture [485 x 343] intentionally omitted <==

Figure
2–
Talang
Santo
Long
Section
Mawi
Vein
(Central
&
West
targets)

www.kingsrosemining.com.au

7

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

**Talang

Santo
South**

Talang
Santo
South
is
located
to
the
south
of
the
Talang
Santo
Central
area
and
to
date
has
only
been
subjected
to
early stage
reconnaissance
exploration.
This
early
work
outlined
outcropping
vein
structures
and
highlighted
the
area
as
a
target for
repeat
structures
similar
to
the
Mawi
vein
at
Talang
Santo.

During
the
quarter
exploration
was
advanced
further
with soil
sampling
with
results
recorded
up
to
40ppb
Au.
The
results
are
encouraging
and
highlight
the
area
as
a
target
for
future

drilling and the prospectivity for the whole area in general.

==> picture [533 x 377] intentionally omitted <==

Figure
3

Talang
Santo
Drill
Hole
Locations

**Linggo

– Sapta Prospect**

Linggo-­‐Sapta
is
located
immediately
south-­‐east
of
the
Way-­‐Linggo
mine
(approximately
200m
away)
and
is
separated
by the
Semung
River.
It
is
considered
to
possibly
be
an
offset
southerly
extension
of
the
main
Way
Linggo
ore
system.
At
the prospect
a
number
of
narrow
sub-­‐parallel
veins
have
been
outlined
over
a
strike
of
approximately
600
metres
and
a
depth of
300
metres.
Exploration
drilling
continued
to
define
the
presence
of
many
mineralized
veins.
Assay
results
confirmed the
potential
for
the
area
with
numerous
narrow
intervals
containing
gold
mineralization
with
assays
ranging
from
low
to very
high
grade.

www.kingsrosemining.com.au

8

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

The
better
intervals
include:

  • DDH-­‐356 0.6m
    @
    15.9g/t
    Au;
    147.9g/t
    Ag
    from
    367.30m

  • DDH-­‐359 0.55m
    @
    8.74g/t
    Au;
    331.87g/t
    Ag
    from
    121.25m

  • DDH-­‐360 0.50m
    @
    5.95g/t
    Au;
    45.7g/t
    Ag
    from
    63.35m
    and
    0.4m
    @
    8.23g/t
    Au;
    80.0g/t
    Ag
    from
    187.70m

  • DDH-­‐361 0.15m
    @
    18.9g/t
    Au;
    134.2
    g/t
    Ag
    from
    112.95m

  • DDH-­‐367 0.6m
    @
    8.49g/t
    Au;
    50.3
    g/t
    Ag
    101.7m
    and
    1m
    @
    7.47g/t
    Au;
    37.6g/t
    Ag
    from
    122.10m

  • DDH-­‐369 1m
    @
    9.5g/t
    Au;
    56.5g/t
    Ag
    from
    14.70m
    and
    1.2m
    @
    9.23g/t
    Au;
    191.5g/t
    Ag
    from
    117.50m

  • DDH-­‐373 0.3m
    @
    7.22g/t
    Au;
    2.09g/t
    Ag
    from
    49m
    and
    0.85m
    @
    5.07g/t
    Au;
    29.3
    g/t
    Ag
    from
    119.45m

  • DDH-­‐375 1.5m
    @
    4.17g/t
    Au;
    11.5g/t
    Ag
    from
    7.20m
    and
    0.1m
    @
    8.23g/t
    Au;
    20.4g/t
    Ag
    from
    18.20m
    and;

  • 0.2m
    @
    11.9g/t
    Au;
    93.3g/t
    Ag
    from
    42m
    and
    0.2m
    @
    9.56g/t
    Au;
    219g/t
    Ag
    from
    81.60m

  • DDH-­‐380 0.6m
    @
    5.45g/t
    Au;
    45.2g/t
    Ag
    from
    1144.6m

  • DDH-­‐383 0.35m
    @
    29.32g/t
    Au;
    90g/t
    Ag
    from
    60.9
    and
    1.9m
    @
    4.87g/t
    Au;
    32.3g/t
    Ag
    from
    96.8m
    and; 0.65m
    @15.1g/t
    Au;
    233.1g/t
    Ag
    from
    241.15m

  • DDH-­‐385 0.9m
    @
    5.64g/t
    Au;
    41.9g/t
    Ag
    from
    55.1m
    and
    0.3m
    @
    16.7g/t
    Au;
    41.3g/t
    Ag
    from
    197.3m
    and ; 0.4m
    @
    6.27g/t
    Au;
    127g/t
    Ag
    from
    262.3m

  • DDH-­‐394 1.5m
    @
    4.1g/t
    Au;
    4.74
    Ag
    from
    34.5m
    and
    1.1m
    @
    5.19Aug/t;
    3.17Ag
    from
    38.3m
    and;

  • 1.3m
    @
    4.27g/t
    Au;
    1.93g/t
    Ag
    from
    58m
    and 0.1m
    @
    6.46g/t
    Au;
    49.53g/t
    Ag
    from
    182.9m

==> picture [445 x 358] intentionally omitted <==

Figure
4

Linggo
Sapta
Drill
Hole
Locations

www.kingsrosemining.com.au

9

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

CORPORATE

Board changes

On
22
August
2012,
the
Company
announced
the
appointment
of
Mr
Andrew
Spinks
as
a
Non-­‐Executive
director
to
the Board.

Mr.
Spinks,
who
is
an
experienced
geologist,
holds
a
B.App.Sc
(Geology)
a
Grad.Dip
(Mining)
and
is
a
member
of
AusIMM. He
has
a
wealth
of
technical,
managerial
and
corporate
experience
gained
over
24
years
within
the
mining
industry
in
both Australia
and
overseas.
Previously,
Andrew
has
held
a
number
of
key
geological,
operational
and
managerial
roles, including
positions
with
Whim
Creek,
Dominion
Mining,
Plutonic
Resources,
Australian
Gold
Fields,
Black
Range
Minerals, Crescent
Gold
Limited
and
more
recently
with
Macarthur
Minerals
Limited.

Andrew
is
currently
a
director
of
ASX
listed Kibaran
Resources
Limited.

At
the
same
time,
the
Company
advised
that
Mr
Peter
Cook
had
resigned
as
a
director
of
the
Company
due
to
a
substantial increase
in
his
other
work
commitments.
Mr.
Cook
has
been
an
integral
part
of
the
Company’s
swift
transition
from explorer
to
producer,
initially
as
a
consultant
following
the
acquisition
of
the
Way
Linggo
project
in
2009
and
then
after
his appointment
as
a
Non-­‐Executive
Director
in
October
2010.

Cash and bullion on hand at the end of the Quarter:

Cash $8.6m Bullion* $2.1m Total $10.7m

*Bullion
includes
unrefined
(filter
cake,
dore)
and
refined
gold
and
silver

Cash Reconciliation and Funding

The
cash
position
of
the
Group
decreased
from
$30.1
million
at
30
June
2012
to
$8.6
million
at
the
end
of
the
September Quarter
due
to:

  • Payments
    related
    to
    the
    maiden
    dividend
    paid
    on
    4
    July
    totaling
    $12.6
    million.

  • Payments
    of
    provisional
    income
    tax
    in
    Indonesia
    totaling
    $3.6
    million.

  • Payments
    for
    exploration
    activities
    totaling
    $4.4
    million.

  • Shortfall
    in
    gold
    and
    silver
    production
    as
    explained
    earlier
    in
    this
    report.

Whilst
the
Company
expects
to
resume
operations
at
Talang
Santo
mine
in
November,
prudent
steps
are
being
taken
to ensure
that
the
Group
maintains
adequate
cash
reserves
to
continue
to
fund
and
accelerate
its
operational,
development and
exploration
strategies.

A
short
term
loan
facility
of
US$5,000,000
was
arranged
on
19
October
2012
with
Advance
Concept
Holdings
Pty
Ltd (“ACH”),
a
company
in
which
Mr
Phillips,
a
Non-­‐Executive
director
of
the
Company,
is
associated.
The
terms
of
the
loan have
been
determined
on
an
arms-­‐length
basis
with
the
principal
sum
and
all
outstanding
interest
repayable
from
either surplus
cashflow
exceeding
a
certain
amount
or
if
debt
or
equity
funding
is
arranged
with
another
party(s).
The
ACH
loan facility
had
not
been
drawn
down
as
at
the
date
of
publication
of
this
report.

www.kingsrosemining.com.au

10

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Activities
Report
for
the
period
ending
30
September
2012

==> picture [27 x 806] intentionally omitted <==

==> picture [82 x 36] intentionally omitted <==

Securities

During
the
Quarter:

  • 177,772
    listed
    options
    were
    exercised
    for
    a
    total
    consideration
    of
    $35,554.40.

  • 500,000
    unlisted
    options
    were
    issued
    under
    ESOP
    to
    an
    employee
    at
    an
    exercise
    price
    of
    $1.26
    each.
    The employee
    has
    subsequently
    resigned
    and
    as
    the
    options
    had
    not
    vested,
    they
    were
    cancelled
    in
    October 2012.

  • 100,000
    unlisted
    options
    were
    issued
    under
    ESOP
    to
    an
    employee
    at
    an
    exercise
    price
    of
    $1.27
    each.
    The options
    are
    subject
    to
    six
    months’
    vesting
    period
    and
    will
    expire
    on
    14
    February

At
the
end
of
the
Quarter
the
Company
had
the
following
securities
on
issue:

  • 289,388,617
    Fully
    Paid
    Ordinary
    Shares.

  • 1,136,413
    Listed
    Options,
    which
    are
    due
    to
    expire
    on
    31
    December

  • 9,075,000
    Unlisted
    Options

    various
    expiry
    dates.

==> picture [108 x 41] intentionally omitted <==

**CHRIS

START MANAGING
DIRECTOR**

26
October
2012

_**Competent

Person
Statement**_

The
information
in
this
report
that
relates
to
exploration
results, mineral
resources
and
ore
reserves
is
based
on
information compiled
by
Mr.
Andrew
Spinks,
B.App.Sc
(Geology),
Grad.Dip
(Mining)
and
is
a
member
of
AusIMM
who
is
a
Director
of
Kingsrose Mining
Limited.
Mr.
Spinks
has
sufficient
experience,
which
is
relevant
to
the
styles
of
mineralisation
and
types
of
deposits
and
to
the activity
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
(“JORC
Code”).
Mr.
Spinks
consents
to
the
inclusion
in
this
report
of
the matters
based
on
his
information
in
the
form
and
context
in
which
it
appears.

www.kingsrosemining.com.au

11

Quarterly
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Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

**APPENDIX

“A”**

All
significant
diamond
hole
intercepts
received
during
the
September
2012
Quarter. (Note:
significant
means
with
a
vein
that
assays
above
1g/t
gold)

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-349 Talang Linar 15514 18560 1327 -60/200 0.35 @ 14.88g/t Au / 42.24 g/t Ag 325.55 0.30
DDH-354 Talang Linar 15559 18493 1358 -60/200 0.75m @ 2.42g/t Au / 2.41g/t Ag 349.85 0.70
0.90m @ 1.52g/t Au / 7.14g/t Ag 350.60 0.85
4.10m @ 1.08g/t Au / 20.30g/t Ag 423.15 3.55
(include 0.50m @ 4.37g/t Au / 63.30g/t Ag) 424.75
0.65m @ 2.17g/t Au / 16.0g/t Ag 454.45 0.42
DDH-355 Talang Linar 15783 18565 1272 -50/200 1.25m @ 0.56g/t Au / 11.00g/t Ag 410.60 1.13
(include 0.20m @ 1.36g/t Au / 39.50g/t Ag) 411.40
DDH-357 Talang Santo 15333 19256 1398 -60/185 2.25m @ 7.11g/t Au / 31.30g/t Ag 498.00 1.95
(include 0.10m @ 13.20g/t Ag/127.90g/t Ag) 498.80
0.25m @ 1.16g/t Au / 1.77g/t Ag 503.70 0.18
0.85m @ 3.14g/t Au / 12.70g/t Ag 509.10 0.65
0.70m @ 1.12g/t Au / 4.72g/t Ag 512.65 0.39
(include 0.30m @ 1.42g/t Au / 4.56g/t Ag) 512.80
0.40m @ 1.79g/t Au / 14.40g/t Ag 514.60 0.38
DDH-362 Talang Santo West 14853 19568 1268 -60/200 1.80m @ 33.59g/t Au; 17.00g/t Ag 27.10 1.56
1.75m @ 19.11g/t Au; 99.10g/t Ag 228.90 1.52
DDH-363 Talang Santo West 15073 19636 1306 -60/200 0.20m @ 6.21g/t Au / 4.88g/t Ag 111.80 0.19
1.00m @ 0.40g/t Au / 2.10g/t Ag 484.80 0.69
(include 0.20m @ 1.15g/t Au / 2.09g/t Ag) 485.20
DDH-364 Petai Kayu 15216 18311 1258 -55/210 0.50m @ 1.41g/t Au / 13.85g/t Ag 176.50 0.43
(include 0.30m @ 2.22g/t Au / 15.8g/t Ag) 176.50
DDH-368 Talang Linar 15477 18384 1324 60/200 0.40m @ 1.14g/t Au / 74.70g/t Ag 148.60 0.35
0.20m @ 3.67g/t Au / 12.20g/t Ag 296.30 0.17
0.50m @ 2.45g/t Au / 185.40g/t Ag 300.30 0.32
1.15m @ 1.04g/t Au / 7.69g/t Ag 303.10 0.74
(include 0.75m @ 1.5g/t Au / 6.84g/t Ag) 303.50
DDH-372 Talang Santo West 14774 19457 1267 -60/200 1.00m @ 1.30g/t Au / 7.10g/t Ag 121.40 0.94
2.20m @ 3.96g/t Au / 12.70g/t Ag 124.55 2.07
DDH-377 Talang Santo 19531 14797 1269 -54/200 1.65m @ 3.34g/t Au / 4.12g/t Ag 164.60 1.43

12

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-379 Talang Santo 14873 19573 1268 -70/203 0.20m @ 1.57g/t Au / 1.14g/t Ag 200.00 0.17
0.95m @ 2.96g/t Au / 3.17g/t Ag 245.00 0.61
0.20m @ 9.31g/t Au / 66.60g/t Ag 252.30 0.10
0.45m @ 1.05g/t Au / 1.58g/t Ag 256.15 0.39
1.80m @ 2.85g/t Au / 6.41g/t Ag 263.05 1.56
3.00m @ 4.57g/t Au / 23.80g/t Ag 269.30 2.60
0.15m @ 1.10g/t Au / 2.98g/t Ag 277.65 0.11
0.70m @ 1.84g/t Au / 7.28g/t Ag 292.05 0.24
DDH-381 Talang Santo 14740 19498 1264 -50/200 0.55m @ 1.46g/t Au / 2.03g/t Ag 77.65 0.45
1.20m @ 1.68g/t Au / 2.34g/t Ag 91.80 0.98
DDH-382 Talang Santo 14895 19533 1268 -62/199 1.25m @ 1.10g/t Au / 2.56g/t Ag 250.25 1.02
DDH-384 Talang Santo 14884 19639 1270 -71/200 0.60m @ 1.30g/t Au / 2.19g/t Ag 308.90 0.16
2.00m @ 2.82g/t Au / 6.83g/t Ag 328.80 1.29
DDH-386 Talang Santo 14740 19498 1264 -50/200 4.20m @ 0.64g/t Au / 1.01g/t Ag 55.60
(include 0.25m @ 1.13g/t Au / 0.76g/t Ag) 57.05
0.30m @ 2.25g/t Au / 2.28g/t Ag 104.70 0.25
0.25m @ 1.12g/t Au / 1.27g/t Ag 233.25 0.21
DDH-388 Talang Santo 14871 19676 1272 -60/200 0.25m @ 3.02g/t Au / 3.80g/t Ag 261.30 0.22
0.25m @ 6.52g/t Au / 3.80g/t Ag 275.70 0.22
3.35m @ 2.04g/t Au / 4.26g/t Ag 277.65 2.90
(include 1.60m @ 3.69g/t Au / 5.94g/t Ag) 277.65
2.50m @ 11.20g/t Au / 58.30g/t Ag 294.25 1.91
0.55m @ 2.67g/t Au / 28.50g/t Ag 401.70 0.39
DDH-390 Talang Santo 15030 19834 1280 -62/210 2.05m @ 1.09g/t Au / 1.38g/t Ag 93.00 0.87
DDH-391 Talang Santo 14795 19476 1270 -90/0 1.15m @ 1.26g/t Au /2.81g/t Ag 226.25 0.83
DDH-392 Talang Santo 14879 19474 1266 -68.5/204 [email protected]/2.85Ag 231.55 0.09
[email protected]/7.84Ag 232.25 0.98
(include [email protected]/14.80Ag) 233.20
DDH-393 Talang Santo 14932.
5
19764.
2
1275.
1
-50/200 [email protected]/1.480Ag 171.65 1.18
[email protected]/3.02Ag 270.60 0.28
[email protected]/1.08Ag 303.95 0.33
[email protected]/3.02Ag 339.50 0.29
[email protected]/13.45Ag 345.30 1.14
DDH-396 Talang Santo 19676 14871 1272 -50/200 [email protected]/22.93Ag 250.50 0.23
[email protected]/1.52Ag 253.65 0.14
[email protected]/7.91Ag 261.60 1.55
[email protected]/3.29Ag 279.30 0.09
[email protected]/5.18Ag 283.75 0.59
[email protected]/7.24Ag 314.90 0.87

13

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-356 Linggo Sapta 10236 9553 1187 50/225 0.30m @ 2.26g/t Au / 39.50g/t Ag 73.50 0.23
0.15m @ 4.18g/t Au / 28.70g/t Ag 103.50 0.13
0.30m @ 1.13g/t Au / 12.20g/t Ag 118.20 0.25
0.40m @ 2.39g/t Au / 31.20g/t Ag 131.00 0.35
0.70m @ 1.39g/t Au / 19.90g/t Ag 135.40 0.57
0.20m @ 3.36g/t Au / 12.7g/t Ag 162.15 0.15
1.25m @ 1.89g/t Au / 6.05g/t Ag 168.25 0.96
(include 0.25m @ 6.33g/t Au / 14.20g/t Ag) 168.25
0.50m @ 3.10g/t Au / 10.40g/t Ag 185.60 0.43
0.30m @ 2.52g/t Au / 12.30g/t Ag 188.80 0.19
0.50m @ 2.00g/t Au / 12.10g/t Ag 284.50 0.32
(include 0.20m @ 4.18g/t Au / 22.20g/t Ag) 284.50
0.20m @ 3.61g/t Au / 39.80g/t Ag 287.40 0.17
0.60m @ 1.22g/t Au / 7.41g/t Ag 364.15 0.49
0.60m @ 15.9g/t Au / 147.90g/t Ag 367.30 0.49
DDH-358 Linggo Sapta 10226 9716 1177 -50/225 0.25m @ 1.00g/t Au / 4.12g/t Ag 134.25 0.22
0.40m @ 1.66g/t Au / 3.99g/t Ag 170.70 0.35
0.25m @ 1.38g/t Au / 2.72g/t Ag 191.15 0.22
1.60m @ 1.19g/t Au / 6.22g/t Ag 214.00 1.39
1.05m @ 1.70g/t Au / 5.76g/t Ag 222.00 0.91
0.20m @ 1.06g/t Au / 8.99g/t Ag 329.70 0.15
DDH-359 Linggo Sapta 10039 9919 1053 -50/227 1.80m @ 1.74g/t Au / 9.90g/t Ag 47.10 1.56
(include 0.80m @ 3.48g/t Au / 15.1g/t Ag) 48.10
0.50m @ 2.42g/t Au / 113.00g/t Ag 79.20 0.43
1.80m @ 2.46g/t Au / 39.90g/t Ag 111.50 1.38
0.55m @ 8.74g/t Au / 331.87g/t Ag 121.25 0.48
DDH-360 Linggo Sapta 10127 9634 1199 -50/225 0.25m @ 1.38g/t Au / 14.90g/t Ag 60.00 0.31
0.50m @ 5.95g/t Au / 45.70g/t Ag 63.35 0.38
0.30m @ 1.56g/t Au / 23.00g/t Ag 79.60 0.24
0.30m @ 1.11g/t Au / 9.25g/t Ag 88.20 0.24
0.30m @ 2.19g/t Au / 29.07g/t Ag 92.00 0.23
0.40m @ 1.41g/t Au / 24.30g/t Ag 101.90 0.31
2.25m @ 1.02g/t Au / 12.90g/t Ag 126.30 1.95
(include 0.40m @ 2.25g/t Au / 30.9g/t Ag) 127.20
0.65m @ 3.29g/t Au / 13.50g/t Ag 144.10 0.50
0.25m @ 3.10g/t Au / 18.20g/t Ag 154.60 0.22
0.40m @ 8.23g/t Au / 80.00g/t Ag 187.70 0.35

14

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-361 Linggo Sapta 10157 9586 1188 -50/225 0.45m @ 2.02g/t Au / 18.20g/t Ag 65.80 0.34
0.15m @ 18.90g/t Au / 134.20g/t Ag 112.95 0.13
0.20m @ 1.62g/t Au / 9.18g/t Ag 129.90 0.19
0.45m @ 1.50g/t Au / 17.00g/t Ag 131.10 0.34
0.15m @ 2.34g/t Au / 40.20g/t Ag 133.10 0.11
0.45m @ 1.33g/t Au / 20.90g/t Ag 142.15 0.34
1.60m @ 2.67g/t Au / 28.80g/t Ag 153.60 1.31
0.50m @ 3.74g/t Au / 4.75g/t Ag 184.30 0.41
DDH-366 Linggo Sapta 1004 9919 1053 -63/227 0.15m @ 1.24g/t Au / 26.50g/t Ag 33.35 0.11
0.25m @ 1.35g/t Au / 11.30g/t Ag 61.00 0.19
0.30m @ 1.26g/t Au / 46.90g/t Ag 64.40 0.19
1.40m @ 0.72g/t Au / 17.20g/t Ag 68.80 0.89
0.40m @ 1.83g/t Au / 12.80g/t Ag 80.75 0.31
0.30m @ 1.77g/t Au / 12.90g/t Ag 85.70 0.19
1.50m @ 1.10g/t Au / 26.60g/t Ag 91.50 1.15
(include 0.75m @ 1.80g/t Au / 47.60g/t Ag) 92.25
4.00m @ 2.13g/t Au / 47.00g/t Ag 135.10 3.06
DDH-367 Linggo Sapta 10107 9711 1190 -50/225 2.50m @ 1.76g/t Au / 2.00g/t Ag 30.90 1.91
(include 0.40 m @ 6.78g/t Au / 2.10g/t Ag) 30.90
1.50m @ 1.51g/t Au / 0.94g/t Ag 48.90 1.15
(include 0.30m @ 4.12g/t Au / 0.82g/t Ag) 48.90
0.20m @ 1.72g/t Au / 17.20g/t Ag 55.20 0.15
0.60m @ 8.49g/t Au / 50.30g/t Ag 101.70 0.54
1.10m @ 3.86g/t Au / 45.00g/t Ag 106.20 0.84
0.30m @ 1.69g/t Au / 14.90g/t Ag 110.20 0.19
1.00m @ 7.47g/t Au / 37.60g/t Ag 122.10 0.64
1.50m @ 1.39g/t Au / 17.40g/t Ag 158.40 0.96
(include 0.20m @ 2.19g/t Au / 31.35g/t Ag) 158.40
0.30m @ 5.32g/t Au / 52.40g/t Ag 163.60 0.27
0.20m @ 1.09g/t Au / 55.50g/t Ag 172.60 0.17
0.20m @ 26.20g/t Au / 145.70g/t Ag 185.00 0.16
0.20m @ 1.43g/t Au / 23.30g/t Ag 199.00 0.17
DDH-369 Linggo Sapta 10053 9867 1079 -60/236 0.20m @ 2.19g/t Au / 0.76g/t Ag 10.90 0.15
1.00m @ 9.50g/t Au / 56.50g/t Ag 14.70 0.77
0.40m @ 1.14g/t Au / 9.31g/t Ag 18.90 0.33
0.90m @ 3.29g/t Au / 15.90g/t Ag 20.80 0.74
2.50m @ 1.20g/t Au / 13.60g/t Ag 22.40 1.92
(include 1.10m @ 1.62g/t Au / 19.30g/t Ag) 23.20
1.00m @ 1.21g/t Au / 40.50g/t Ag 53.30 0.71
0.10m @ 1.06g/t Au / 14.30g/t Ag 59.40 0.09
1.20m @ 9.23g/t Au / 191.50g/t Ag 117.50 0.92
2.55m @ 0.74g/t Au / 15.20g/t Ag 172.60 1.95
(include 0.95m @ 1.65g/t Au / 28.50g/t Ag) 174.20 0.73

15

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-373 Linggo Sapta 10107 9711 1190 -52/239 0.20m @ 1.51g/t Au / 0.51g/t Ag 31.70 0.15
1.90m @ 4.09g/t Au / 1.62g/t Ag 33.10 1.22
0.15m @ 1.18g/t Au / 0.25g/t Ag 47.25 0.13
0.30m @ 7.22g/t Au / 2.09g/t Ag 49.00 0.23
0.20m @ 1.40g/t Au / 0.51g/t Ag 67.30 0.18
0.80m @ 1.19g/t Au / 3.73g/t Ag 78.20 0.73
2.60m @ 1.86g/t Au / 19.80g/t Ag 95.40 2.37
(include 1.00m @ 2.59g/t Au / 16.44g/t Ag) 95.40
0.45m @ 1.44g/t Au / 28.10g/t Ag 105.50 0.39
0.85m @ 5.07g/t Au / 29.30g/t Ag 119.45 0.70
1.30m @ 1.55g/t Au / 19.30g/t Ag 127.80 1.00
0.70m @ 4.18g/t Au / 49.50g/t Ag 151.30 0.54
0.20m @ 4.05g/t Au / 35.90g/t Ag 157.60 0.15
0.25m @ 2.04g/t Au / 21.80g/t Ag 166.55 0.19
0.40m @ 7.73g/t Au / 20.90g/t Ag 179.30 0.20
0.60m @ 1.24g/t Au / 3.48g/t Ag 184.20 0.39
1.10m @ 2.47g/t Au / 21.90g/t Ag 188.50 0.84
DDH-374 Linggo Sapta 10226 9718 1178 -65/267 0.25m @ 1.02g/t Au / 3.93g/t Ag 6.25 0.16
1.10m @ 1.54g/t Au / 16.10g/t Ag 16.70 0.84
0.30m @ 2.06g/t Au / 4.62g/t Ag 46.90 0.23
DDH-375 Linggo Sapta 10052 9863 1080 -48/236 1.50m @ 4.17g/t Au / 11.50g/t Ag 7.20 1.15
0.10m @ 8.23g/t Au / 20.40g/t Ag 18.20 0.09
1.40m @ 3.02g/t Au / 28.40g/t Ag 21.20 1.07
(include 0.80m @ 4.12 g/t Au / 35.28 g/t Ag) 21.20
0.20m @ 11.90g/t Au / 93.30g/t Ag 42.00 0.15
0.55m @ 1.35g/t Au / 20.60g/t Ag 50.70 0.45
0.25m @ 1.76g/t Au / 12.50g/t Ag 53.90 0.22
1.10m @ 1.56g/t Au / 25.50g/t Ag 65.60 0.95
0.15m @ 1.57g/t Au / 27.70g/t Ag 72.80 0.11
0.30m @ 1.01g/t Au / 24.30g/t Ag 80.00 0.26
0.20m @ 9.56g/t Au / 219.10g/t Ag 81.60 0.17
2.70m @ 2.76g/t Au / 56.00g/t Ag 152.10 2.34
DDH-378 Linggo Sapta 9718 10226 1177 -58/244 0.40m @ 1.21g/t Au / 21.50g/t Ag 56.10 0.20
0.90m @ 1.02g/t Au / 11.15g/t Ag 173.30 0.69
0.50m @ 3.04g/t Au / 3.80g/t Ag 232.1 0.38
DDH-380 Linggo Sapta 10158 9587 1188 -53/260 0.15m @ 2.54g/t Au / 7.41g/t Ag 13.20 0.12
0.50m @ 1.14g/t Au / 19.40g/t Ag 42.20 0.41
0.60m @ 3.02g/t Au / 31.9g/t Ag 72.10 0.52
0.25m @ 2.52g/t Au / 43g/t Ag 90.30 0.19
0.70m @ 1.31g/t Au / 18.6g/t Ag 126.50 0.49
1.20m @ 2.78g/t Au / 12.40g/t Ag 140.80 1.04
0.60m @ 5.45g/t Au / 45.20g/t Ag 144.60 0.52

16

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-383 Linggo Sapta 10138 9764 1165 -50/222 1.00m @ 1.46g/t Au / 17.4g0/t Ag 39.40 0.87
0.40m @ 1.41g/t Au / 13.40g/t Ag 42.20 0.35
0.50m @ 1.21g/t Au / 7.47g/t Ag 46.00 0.44
0.60m @ 1.62g/t Au / 10.30g/t Ag 56.00 0.49
0.35m @ 29.32g/t Au / 90.00g/t Ag 60.90 0.33
1.90m @ 4.87g/t Au / 32.30g/t Ag 96.80 1.65
2.00m @ 1.43g/t Au / 10.00g/t Ag 128.60 1.53
0.60m @ 2.32g/t Au / 24.90g/t Ag 140.30 0.46
0.80m @ 2.76g/t Au / 48.10g/t Ag 155.90 0.67
0.65m @ 15.10g/t Au / 233.10g/t Ag 241.15 0.46
DDH-385 Linggo Sapta 10185 9736 1192 -52/224 2.70m @ 0.87g/t Au / 5.20g/t Ag 9.40 2.34
(include 0.90m @ 1.22g/t Au / 9.06g/t Ag) 9.40
0.80m @ 1.07g/t Au / 7.35g/t Ag 14.10 0.69
2.50m @ 1.40g/t Au / 1.78g/t Ag 25.50 2.15
(include [email protected]/1.58Ag) 25.50
0.20m @ 1.30g/t Au / 5.83g/t Ag 38.70 0.17
1.10m @ 1.07g/t Au / 10.30g/t Ag 39.70 0.93
0.90m @ 1.23g/t Au / 4.37g/t Ag 42.30 0.72
0.90m @ 5.64g/t Au / 41.90g/t Ag 55.10 0.72
0.30m @ 1.90g/t Au / 1.58g/t Ag 68.20 0.24
0.60m @ 1.29g/t Au / 5.70g/t Ag 82.80 0.49
1.15m @ 0.70g/t Au / 13.60g/t Ag 119.55 0.94
(include 0.35m @ 1.02g/t Au / 13.90g/t Ag) 119.55
0.50m @ 1.10g/t Au / 2.09g/t Ag 125.55 0.47
1.95m @ 0.94g/t Au / 7.66g/t Ag 148.05 1.69
1.30m @ 1.82g/t Au / 17.40g/t Ag 173.20 1.00
0.30m @ 1.35g/t Au / 13.50g/t Ag 175.80 0.25
0.90m @ 1.57g/t Au / 15.5g0/t Ag 182.10 0.78
0.30m @ 3.17g/t Au / 24.10g/t Ag 184.10 0.26
2.00m @ 1.94g/t Au / 14.90g/t Ag 191.70 1.73
0.30m @ 16.70g/t Au / 41.30g/t Ag 197.30 0.26
0.35m @ 1.31g/t Au / 4.24g/t Ag 202.70 0.27
0.60m @ 1.66g/t Au / 29.90g/t Ag 210.60 0.46
0.40m @ 6.27g/t Au / 127.90g/t Ag 262.30 0.26
0.70m @ 2.49g/t Au / 14.60g/t Ag 290.80 0.49
0.40m @ 2.42g/t Au / 6.71g/t Ag 301.40 0.31

17

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

Hole No. Prospect N E RL Dip /
Azimuth
Intercept Depth
From
True
Width
DDH-387 Linggo Sapta 10138 9764 1165 -60/222 0.20m @ 1.21g/t Au / 2.15g/t Ag 12.80 0.17
0.60m @ 2.63g/t Au / 6.08g/t Ag 30.60 0.46
0.80m @ 1.48g/t Au / 7.54g/t Ag 69.10 0.61
0.80m @ 2.23g/t Au / 17.50g/t Ag 105.80 0.57
1.80m @ 1.88g/t Au / 26.10g/t Ag 109.50 1.38
1.60m @ 1.08g/t Au / 11.90g/t Ag 112.30 1.23
3.10m @ 1.56g/t Au / 13.90g/t Ag 140.30 2.68
0.40m @ 1.30g/t Au / 12.00g/t Ag 153.40 0.31
0.10m @ 1.17g/t Au / 21.00g/t Ag 171.20 0.09
0.40m @ 1.67g/t Au / 21.80g/t Ag 243.90 0.26
DDH-394 Linggo Sapta 10042 9677 1193 -50/216 [email protected]/4.74Ag 34.50 1.30
(include [email protected]/8.93Ag)
[email protected]/3.17Ag 38.30 0.95
[email protected]/0.70Ag 47.80 0.43
[email protected]/1.93Ag 51.90 1.13
[email protected]/1.52Ag 58.00 0.16
[email protected]/31.70Ag 65.80 0.27
[email protected]/27.40Ag 97.20 0.78
[email protected]/57.40Ag 117.80 0.16
[email protected]/7.85Ag 143.45 0.70
[email protected]/22.40Ag 154.70 0.23
[email protected]/28.30Ag 171.70 0.69
[email protected]/49.53Ag 182.90 0.07
[email protected]/3.29Ag 187.80 0.12

18

Quarterly
Activities
Report
for
the
period
ending
30
September
2012

==> picture [82 x 37] intentionally omitted <==

APPENDIX B” “

**Contract

of
Work
Area.**

==> picture [468 x 643] intentionally omitted <==

19