Kingsrose Mining has commenced the ramp-up at Talang Santo with all-in cash costs forecast to be about US$650 per ounce once steady-state production is reached. The ramp-up follows the company securing permitting and funding.

Development activity concentrated on completion of underground infrastructure in the vicinity of the base of the 120 metre external shaft that connects from Level 3 to surface. This work included drifting westward from the shaft base and eastward along the vein footwall with just over 50 metres of horizontal development completed. To the southeast, a chamber was cut for the water dam and pumping station. The electrical cabling and pumps for the pumping station were installed and the station became fully operational in June.

The main development drift on Level 3 follows the footwall and over 40 metres was driven in an easterly direction in competent rock. The hanging wall and intermediate zone have been exposed in several places and sampling has confirmed the presence of high grade clay zones. The width of the mineralization within the eastward development is estimated to be between 6 and 9 metres with the higher grades present in breccia quartz vein material with a clay matrix. The intermediate and hanging wall zones have tended to exhibit higher grades than along the foot wall.

Normal miming activities at Way Linggo mine has been suspended in light of a fall in ore production rates. The company has started a ‘step-back’ review of the mine and its surrounds to find nearby lodes. The company is of the view that the Way Linggo ore body does not exist in isolation.

The rate of mining at Way Linggo fell in quarter two fell due to the cessation of development of the silver vein below Level 4 and adjacent to the main vein structure. Ore was milled through the process plant in two campaigns during the quarter, resulting in 446 ounces of gold and 10,889 ounces of silver being produced.

Local communities continue to show support for the Way Linggo project. Key local community leaders have been kept well informed of the difficulties faced by the project and the resultant ramifications on personnel and local suppliers.

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