KBL Mining Limited (ASX: KBL) – $0.046
26 May 2015
KBL Mining Limited (ASX: KBL) has commenced development works at the Pearse Open Cut Gold-Silver Mine within the Mineral Hill Project located near Condobolin in New South Wales.
Clearing and setting up infrastructure has been finalised and removal of topsoil and construction of a haul road will now begin.
The contract for development of the open pit is expected to be awarded next week (Figure 1). Operations will initially focus on extraction of transitional and sulphide ore. This will be processed through the existing mill flotation plant with the tails being stored for processing when the CIL plant comes online in November 2015.
Figure 1. Pearse optimised pit from the southeast toward Mineral Hill processing plant approximately 800m away
The pit is planned to supply approximately 30,000 tonnes of ore per month for 9 to 10 months from August 2015 based on a 1.5g/t Au cut off. Production forecasts of 35,000 ounces to 40,000 ounces of gold and 280,000 ounces to 290,000 ounces of silver in a combination of concentrate and gold bullion are estimated by the company’s model with a total cost of $45-$50/t ore.
The Pearse Gold-Silver Resource is estimated at 298,000 tonnes at 6.5g/t Au and 80g/t Ag with a strike length of 170 metres extending from surface to less than 100 metres in depth. The deposit comprises shear hosted fine grained gold and silver mineralisation and is characterised by clay-sericite-pyrite alteration.
The Pearse Gold-Silver Reserve is estimated at 235,000 tonnes at 6.9g/t Au and 72g/t Ag. An update to the reserve is expected to be finalised in June 2015.
For further information, visit www.kblmining.com.au
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