Kingsgate (ASX:KCN) strikes high grade gold at Chatree
Kingsgate Consolidated has confirmed high-grade gold mineralisation in five of the six holes drilled to 20m depth at the Chatree Gold Mine in Thailand.
For over a decade, the Chatree Gold Mine, one of Thailand’s most significant gold producers, has been operated by Akara Resources Public Company Limited, a Thai subsidiary of Kingsgate Consolidated Limited.
The high-grade mineralisation is in two zones 20m apart, extending from the pit surface to the full drilling depth.
The company says grade control drilling has returned significant economic grade mineralisation, remaining open to the north and at depth.
Some significant intersections include 4.5m at 16.96g/t Au, 1.5m at 44.70g/t Au, 9.0m at 4.12g/t Au, and 3.0m at 11.45g/t Au.
“These stellar results confirm what we’ve always suspected, that the A Pit and surrounds contain pockets of high-grade ore, and pleasingly, we now have full access to all these areas,” Kingsgate Consolidated Limited Managing Director and CEO Jamie Gibson said,
“Our priority will be to complete the GC program and adjust our mining schedule to pick up these highly valuable areas early on to boost cash flow.
“Both our regional and near mine exploration programs have been delivering exciting results over the past year, and this continuing success bodes well for future resource upgrades”.
The GC drilling is expected to provide additional quick access to high-grade ore.
About Kingsgate Consolidated
Kingsgate is a gold mining company that owns Chatree Gold Mine in Thailand. The mine produced around 1.8 million ounces of gold and almost 8 million ounces of silver since operations started in 2001. However, in May 2016, the Thai Government announced that all gold mining in Thailand would cease by 31 December 2016, and as a result, Chatree was placed on Care and Maintenance on 1 January 2017. Kingsgate has been focused on ways to remedy the situation since the announcement. The company also owns the Nueva Esperanza Project in Chile, which has a reserve of 1.1 million ounces AuEq60 and a mineral resource base of 1.9 million ounces AuEq60.
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