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Mixed bag for Kingsgate in Sept quarter

28th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Kingsgate Consolidated on Monday reported the highest production in five quarters from its Challenger gold operation, in South Australia, as the new mine plan focused on the higher-grade Challenger West orebody.

Kingsgate produced  50 786 oz of gold in the September quarter, which was in line with expectations, but less than the 61 973 oz it had produced the June quarter.

The Challenger mine increased its production 16% quarter-on-quarter to 18 545 oz, but production from the Chatree mine, in Thailand, dropped by 30% quarter-on-quarter to 32 241 oz.

Kingsgate ascribed the weaker Chatree production figures to lower-grade ore and minor interruptions owing to high rainfall during the wet season. Cash costs at Chatree rose to A$807/oz, from A$686/oz reported in the three months to June, and reflected the lower gold grades.

At the Challenger operation, gold production increased from the 15 920 oz produced in the previous quarter; however cash costs also increased to A$1 454/oz, compared with the A$1 215/oz reported in the previous quarter.

The higher cash costs reflected the inclusion of all operating and mine development costs.

Total production for the full financial year, which ends in June 2014, was expected to be between 190 000 oz and 210 000 oz, of which Chatree would deliver between 120 000 oz and 130 000 oz, and Challenger would make up the balance.

Edited by Creamer Media Reporter

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