Thai Government Approves Kingsgate Consolidated Limited (ASX:KCN) Gold Mine Expansion
Sydney, June 10, 2010 AEST (ABN Newswire) - The Thai government has approved an investment package with an 8 year tax free period to construct a new US$100 million processing plant at Kingsgate's (
ASX:KCN) Chatree gold mine in central Thailand.
Kingsgate's Board has approved the processing plant expansion to begin immediately.
When complete, the expanded plant will more than double ore processing capacity to 5 million tonnes per annum.Construction costs will be approximately US$100 million, funded mainly by debt. Kingsgate has already spent US$25 million. The company has US$36 million in cash and an unused debt facility of US$30 million.
"The expansion is ready to go", said Managing Director Gavin Thomas. "This plant expansion is the next stage in our successful gold operation in Thailand, where we have had a long term commitment. "
"There are very few low cost gold producers with a significant near-term production increase like this, especially outside Australia, away from any proposed Resources Super Profits Tax."
Kingsgate Consolidated Limited is a gold producer operating in central Thailand for over 8 years with a proven record of sustainable rural development, capacity building and 'best-in-business' environmental management.
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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