Kingsgate Releases Definitive Feasibility Study for Nueva Esperanza Project

Kingsgate Consolidated Ltd. (ASX:KCN) provided a summary of the results of the definitive feasibility study for its Chile-based Nueva Esperanza silver-gold heap leach project.

Highlights include:

• Proved and Probable ore reserves total 17.1 million tonnes at 97 g/t silver and 0.27 g/t gold (113 g/t silver equivalent (AgEq) or 1.89 g/t gold equivalent (AuEq))
• Average annual production of 7,500,000 oz of AgEq (approximately 125,000 oz AuEq)
• Initial +6 year mine life with significant potential for extensions
• Capital costs of US$140 million including a US$10 million contingency
• Average cash operating costs of US$11.44/oz AgEq or US$687/oz AuEq (incl. royalties)
• First production is targeted in first half of 2016 calendar year

Gavin Thomas, managing director and CEO of Kingsgate, commented:

We are delighted by the results of the feasibility study, which support our long held belief in the underlying quality and inherent value of the Nueva Esperanza project.

We remain optimistic in the mineral endowment of the immediate vicinity, which has the potential to provide Kingsgate with a long, sustainable operating presence in this region.

Click here to read the full Kingsgate Consolidated Ltd. (ASX:KCN) press release.