Kingsrose Mining Limited (ASX:KRM) Prepares to Commission the Way Linggo Gold and Silver Mine in Indonesia

Perth, Mar 15, 2010 AEST (ABN Newswire) - Kingsrose Mining Limited (ASX:KRM) is applying the finishing touches to its high-grade Way Linggo gold and silver mine in Indonesia with aim being to start commissioning the processing plant near the end of next month.

When in production Way Linggo will be one of the lowest cost gold producers listed on the Australian Securities Exchange. After silver credits and royalty payments the gold cash cost is expected to be less than US$200 an ounce.

Stockpiling ore from the mine in southern Sumatra has started with 14,000 tonnes of material assaying 21.9 grams of gold and293 grams of silver a tonne is ready for the process plant .

The executive chairman of Kingsrose, John Morris, said the high grades of the material extracted so far during mine development work was being treated as a bonus and boded well for the remainder of the orebody.

"It is significantly higher in both gold and silver content than was predicted for the development areas from the drill-based resource estimates," Morris said.

High metal grades are a traditional feature of the epithermal vein style mineralisation being mined at Way Linggo which has, so far, been shown to contain two distinct orebodies, A and B.

The company said in its half-year reported filed at the Australian Securities Exchange that face sampling along the strike of the A orebody had returned assays as high as 62 metres grading 34.2g/t gold, plus 452g/t silver.

Other recent face assays from mine development work on the A orebody include 50m at 24.7g/t, plus 371g/t silver.

The most recent face samples from the from the B orebody include 57 metres grading 27g/t gold, plus 369g/t silver.

Morris said construction of the processing plant at Way Linggo was well advanced.

"All major large equipment, including ball mills, crushers, and conveyors are on site in preparation for installation," he said. "Construction of the gold room, on site-laboratory and power house is progressing."

Morris also said that work was accelerating on the second major project being undertaken by Kingsrose, a study into re-processing tens of millions of tonnes of zinc, lead and silver tailings left after several centuries of mining on the Italian island of Sardinia.

"We are working closely with the Government of Sardinia on a three-phase process with the dual aims of cleaning up the environmental legacy of zinc and lead mining, and the creation of a viable new business," he said.

"There will be three clear phases to this work, starting with sample assaying and bulk density estimates of various tailings dumps, followed by metallurgical test work, and then project feasibility studies.

"We aim to complete the first two phases by the September quarter of this year, with the third phase taking approximately another six-to-12 months.

"We are confident of a successful outcome for Kingsrose and the people of Sardinia, creating a new business which will provide job opportunities in the region, and put to an end decades of leakage of heavy metals and acid."

Contact

Tanya C. Ashley Joint Company Secretary Tel: +61-8-9486-1149 Fax: +61-8-9486-1151 Email: info@kingsrosemining.com.au