Kingsgate - Quarterly Activities Report for the period ending 31 March 2016
Kingsgate Consolidated (ASX:KCN) has announced gold production of 34,472 ounces at a total cash cost of US$870/oz for the March quarter. Challenger contributed 9,419 oz during its final quarter before closure and sale with the remainder from Chatree. Also during the quarter, KCN announced positive Optimisation Study results from Nueva Esperanza silver-gold project in Chile and the sale of an 85% interest in the Bowdens silver project for A$20m.
- Group quarterly gold production of 32,472 ounces at a total cash cost of US$870/ounce.
- Chatree (Thailand) gold production of 23,053 ounces at a total cash cost of US$954/ounce was below trend due to fleet availability issues and reduced access to higher grade ore.
- Challenger (Australia) made a strong final contribution during the quarter with a quarterly gold production of 9,419 ounces at a total cash cost of US$662/ounce. The mine was placed on care and maintenance and the sale completed effective 15 March 2016.
- The Nueva Esperanza Project (Chile) has now moved into the Feasibility Study stage.
- Completion of the Optimisation Study at Nueva Esperanza to a Pre-Feasibility level confirms robust project economics with the potential to be one of the exciting emerging precious metals projects in South America.
- Systematic property scale exploration continued at Nueva Esperanza with the completion of a 485 hole basement geochemistry drilling program to help unlock the potential of the 50 kilometre2 alteration footprint and establish RC drill targeting.
- The sale of an 85% interest in the Bowdens Silver Project is on track for completion with an A$18 million final payment due by 30 June 2016.
- Cash and bullion/doré totalled A$49.8 million (December quarter: A$55.5 million), comprising cash of A$43.1 million and bullion/doré of A$6.7 million.
- Debt facilities of A$92 million comprising a A$10 million corporate facility and an A$82 million equivalent syndicated loan facility against Chatree.
- Debt reduction continued with Group Net Debt* down to A$49 million. (*Debt facilities less cash.)