Sydney, Nov 13, 2008 AEST (ABN Newswire) - A major new gold discovery by Kingsgate Consolidated Limited (ASX:KCN)(PINK:KSKGF), to be known as Chokdee, has been made in the central Thai gold belt, approximately 20km north of the Chatree gold mine.
"This discovery has the potential for a new Chatree-size gold system or even larger", said Kingsgate's Managing Director, Gavin Thomas. "Ore-grade gold results over wide intercepts in this early drilling stage, supports the Company's long-held view of a significant new gold belt in central Thailand. Large geochemical gold anomalies with coincident geophysical anomalies like this are the best guide to future open cut gold mining potential."
Success came in the first drillholes of a regional drilling campaign on targets within granted exploration leases. Wide zones of significant gold mineralisation with high grade sections were intersected from near surface.
Best results from the new Chokdee prospect are:
36.5 metres of 2.9 grams/tonne (g/t) gold,
including 5.8 metres of 11.7 g/t gold;
3.2 metres of 21.5 g/t gold; and
29 metres of 2.0 g/t gold, including 4.4 metres of 7.3 g/t gold.
A large gold-in-soil geochemical anomaly, covering approximately 30km2, surrounds the area of the discovery, which is larger than the 23km2 anomaly that covers the existing Chatree mine, which has been producing gold for seven years. Chatree grew from an initial resource of just under one million ounces of gold to almost 5 million ounces since the start of mining. Recent resource development drilling has demonstrated that the Chatree resource will increase significantly.
At Chokdee, the initial drilling is focused on one area of approximately 2.5km x 0.5km of silicification, phyllic and clay alteration zones within the larger gold anomalous zone. The best gold drill results are closely associated with these alteration zones, and numerous rock chip assay results over 1 g/t gold, and up to 108 g/t gold. Banded epithermal veins have been identified (see photo attached) with gold grades of 13 g/t gold. Geophysical resistivity and chargeability anomalies are closely associated with these silicified and mineralised zones, similar to Chatree. Altered zones lie within volcanogenic sediments and andesitic volcanics.
Drilling of regional exploration targets started recently on granted Special Prospecting Licenses (SPL's), initially at Chokdee Prospect in Phitsanulok province. This is the first of many drill-ready targets to be tested. The discovery area has been a high priority drill target for Kingsgate, and these results have confirmed the Company's expectations.
Other diamond drillhole results, which cover 400 metres along the same structure, include:
16 metres of 2.2 g/t gold, including 2m of 10.8 g/t gold;
14 metres of 1.9 g/t gold, including 5m of 3.4 g/t gold;
11 metres of 3.4 g/t gold, including 1m of 28.3 g/t gold; and
1.5 metres of 18.8 g/t gold.
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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