Kingsgate Consolidated reports exploration drilling targeting extensions to the Challenger West shoot at its Challenger mine in South Australia has intersected gold mineralization, including 2.16 m grading 109.83 g/mt gold. The current drill program is designed to test the continuity of the Challenger West shoot below currently defined reserves by drilling from an exploration drive 400 m below the surface on the 800 Level. The latest results confirm the potential to identify and define mineralized shoots in the upper levels of the mine that could generate increased resources and reserves over the next 12 to 24 months.
Kingsgate owns and operates the Chatree gold mine in central Thailand. The company assumed management control of Dominion Mining Ltd. in February 2011, including Dominion’s 100%-owned Challenger mine, following an agreed acquisition initially announced on October 2010. In addition to the Challenger mine, Kingsgate acquired an extensive portfolio of Dominion gold and base metal exploration projects in Western Australia and South Australia.
The Challenger mine is located 740 km northwest of Adelaide. Open-pit mining began in mid-2002, and plant commissioning began in late September 2002. The first shipment of gold bullion was completed on October 24, 2002. Resources at the end of the 2010 financial year (June 30, 2010) totaled 950,220 oz of gold, including 421,650 oz of reserves. Gold production for the first six months of 2011 is forecast at 50,000 oz.