PERTH (miningweekly.com) – Junior gold miner Kingsgate Consolidated has been granted permission by the Thai government to sell the gold and silver sludge at its Chatree gold mine to a Thai refinery.
The sludge is estimated to contain some 4 750 oz of gold and 34 800 oz of silver, valued at around A$14-million at a gold price of A$2 678/oz, before royalties, transportation and refining costs.
The ASX-listed Kingsgate said on Thursday that the sludge was generated from the tanks and processing plant following the closure of the Chatree operation at the end of 2016, and is the property of Kingsgate subsidiary Akara Resources.
Terms have been agreed with the Thai refinery to process the sludge pursuant to new legislation, which requires gold mined in Thailand to be refined in Thailand.
“While this move is long overdue, Kingsgate sees it as a small but positive step, and seemingly as an act of good faith, indicating a new willingness by the Thai government to pursue a negotiated settlement between the two parties, a process Kingsgate has advocated for some considerable time,” said Kingsgate executive chairperson Ross Smyth-Kirk.
Shipment of the sludge to the refinery has already started.