New Gold Discovery at Nueva Esperanza Project, Chile
Sydney, Dec 15, 2015 AEST (ABN Newswire) - Kingsgate Consolidated (
ASX:KCN) is pleased to announce that preliminary assay results from a recently completed reverse circulation drilling campaign at Nueva Esperanza returned significant gold intersections in the new project area of Carachita, within 2 kilometres of the proposed plant site.
A total of five holes were drilled in three sections at 50 metres intervals following up from a single hole drilled previously that also intersected gold mineralisation. All five holes returned significant gold intersections from shallow depths less than 20 metres below the natural surface.
Best of the new intersections was:
- 11 metres at 4.91g/t gold from 14 metres in hole ECCR-02,
The other four holes were:
- 23 metres at 2.12g/t gold from 13 metres in hole ECCR-03,
- 11 metres at 1.50g/t gold from 20 metres in hole ECCR-04,
- 13 metres at 1.48g/t gold from 19 metres in hole ECCR-01,
- 12 metres at 0.86g/t gold from 26 metres in hole ECCR-05.
These gold intercepts that also include some silver mineralisation are considered significant in an area that was previously tested with only a single hole that returned 9 metres at 2.93g/t gold from 18 metres as part of a regional condemnation drilling program.
The Carachita prospect remains open to the surface, at depth and along strike to the east and west.
Kingsgate CEO, Greg Foulis, said the shallow nature of the gold mineralisation and proximity to the proposed processing plant has potential to add value to the project and support the prospectivity of the Nueva Esperanza property.
"Nueva Esperanza comprises three well-defined silver and gold epithermal deposits: Arqueros, Chimberos and Teterita and numerous prospects within a 45 square kilometre alteration system", he said.
The present results are part of an initial drilling campaign of 2,000 metres with further drilling planned for the March 2016 Quarter.
Kingsgate will progress technical studies and permitting during 2016 in parallel with exploration.
Exploration Program Background
Reconnaissance exploration drilling at Nueva Esperanza was completed for the 2,000 metres Spring campaign, which commenced in late September 2015.
Exploration drilling was completed at five prospects in Nueva Esperanza with partial assay results on hand for Carachapampa, Carachita and Arqueros West.
As reported above, Carachita drilling intersected significant gold mineralisation from shallow depths. At Carachapampa, drilling intersected highly altered structures but reported gold grades appear to be uneconomic.
Remaining assay results are expected before the end of calendar 2015.
The recently completed drilling program comprised the following:
-----------------------------------------Sector Number of Holes Metres-----------------------------------------Carachapampa 14 1,206Carachita 5 335Arqueros West 2 145Chimberos pit 1 127Grandote 2 133-----------------------------------------Total 23 1,946-----------------------------------------
To view the release including Tables and Figures, please visit:
http://media.abnnewswire.net/media/en/docs/81832-ASX-KCN-746576.pdf
About Kingsgate Consolidated Limited
Kingsgate Consolidated Limited (ASX:KCN) (OTCMKTS:KSKGF) is an experienced pacific rim gold producer and highly successful ASX listed gold company with significant expertise in gold exploration, development and mining.
Kingsgate owns and operates the Chatree Gold Mine in central Thailand and the Nueva Esperanza Development Project, located in the highly endowed Maricunga gold and silver belt of the Atacama Region of northern Chile.
The Chatree Gold Mine is a world class gold producing asset, with a proven operating history, with 1.8 million ounces of gold and 10 million ounces of silver produced between 2001-2016.
Chatree is a large scale, low-cost, open pit operation with a combined +5 Mtpa processing capacity across two plants, with existing Life of Mine supporting a ~9 year mine life based on 1.3m oz gold reserve.
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