Name and Location
Nueva Esperanza silver/gold heap-leach project, Chile.

Client
Kingsgate Consolidated.

Project Description
The Nueva Esperanza project comprises three deposits – Arqueros, Teterita and Chimberos – and has proven and probable reserves totalling 17.1-million tonnes grading at 97 g/t silver and 0.27 g/t gold.

A definitive feasibility study (DFS) on the project supports the technical viability and financial robustness of the project, and identifies further upside potential within the existing resource base and the identified exploration targets within the mining lease.

The DFS is based on a three-million-tonne-a-year operation.

It is envisioned that the low strip-ratio Teterita deposit will provide the bulk of the initial ore feed, with material progressively becoming available from Arqueros, which has a higher strip ratio and will be mined in a series of cutbacks. Chimberos is currently planned to be mined towards the end of the project life.

Based on the expected metallurgical recovery factors from testwork to date, planned production is 40-million ounces of silver and 112 500 oz of gold over an initial six-year mine life.

The processing flowsheet for the heap-leach operation will comprise crushing, agglomeration, leaching and production of silver/gold doré.

Net Present Value/Internal Rate of Return
Not stated.

Value
$140.3-million. Work is under way to optimise these cost estimates with several opportunities identified that reduce total costs.

Duration
A construction period of 15 months is envisaged, with first production in the first half of 2016.

Latest Developments
The decision to begin construction on the Nueva Esperanza project is expected in the second half of this year.

Key Contracts and Suppliers
Alquimia (process plant and infrastructure design, capital and operating costs); ALS Global (mineral resource estimation); Coffey (pit optimistaion, waste dump, haul road designs, mining costs and scheduling); CPH y Asociados (hydrogeology and associated water work); Geoinvestments (geotechnical work); Golder Associates (geotechnical work); MyMA Minero e Medio Ambiente (environmental and environmental-impact study management); SysStep (power); Köpper (high-pressure grinding rolls testwork); and Weir Minerals (high-pressure grinding rolls pilot plant tests).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kingsgate Consolidated, tel +61 2 8256 4800, fax +61 2 8256 4810 or email info@kingsgate.com.au.
Coffey, tel +1 202 484 7170 or fax +1 202 488 0754.
CPH y Asociados, tel +56 2 3715084 or email contacto@cphsa.cl.
Golder Associates, tel +56 2 2616 2000, fax +56 2 2616 2001 or email info@golder.cl.
MyMA, tel +56 2 2442186, fax +56 2 244 2188 or email info@myma.cl.
Köpper, tel +58 286 994 1792 or fax +58 286 994 1687.
Weir Minerals, tel +56 41 223 74 75, fax +56 41 223 30 36 or email vulcoconcepcion@weirminerals.cl.