Operations at the Way Linggo Gold Project in South Sumatra, Indonesia, are progressing well, with June quarter production increasing 50% from the previous quarter to about 5055 ounces of gold. The project is operated by Kingsrose Mining, which is subject to a deed of company arrangement.
The increased production, which saw mined tonnages rise by 78% to 22,489 tonnes, is due largely to the successful commencement of open cut activities at the Way Linggo mine.
The Way Linggo open cut has been designed to mine the measured resource above the 1 Level of the Way Linggo underground mine. The open cut will recover the pillars and remnant ore that was unable to be mined using the methods in place at the Way Linggo mine.
In parallel with the open cut, a study is under way to explore the possibility of resuming underground mining at Way Linggo utilising greater mechanised mining methods to safely recover as much as possible of the remaining measured resource.
About 5551 tonnes at an average grade of 7.6 g/t gold was mined from the Talang Santo mine during the quarter. Water ingress into the mine continues to remain a challenge and is impacting production rates.
Deed administrator Michael Ryan said, These results are pleasing and provide evidence that our strategy to return the Way Linggo project to profitability is working.
In addition to these production scenarios, there is substantial regional exploration potential at the Way Linggo project and we intend to address this opportunity in coming months.