Kentor Gold hauls first high grade underground gold, lowers costs at Murchison 

(MENAFN - ProactiveInvestors - Australia) Kentor Gold (ASX: KGL) has hauled the first high grade ore from the NOA 2 underground mine at its Murchison Gold Mine, and has lowered mining costs with the appointment of a new contractor.

The hauling of the first high grade ore from the underground mine follows the successful dewatering of the underground workings and the installation of the air, water, power, ventilation, and communication services.

The underground mining equipment is now fully mobilised to site, and ground conditions have been found to be excellent.

The blending of the higher grade ore from underground with the ore from the open pits is now increasing the grade of the ore feed to the carbon-in-leach (CIL) plant.


Lower costs

Kentor has appointed a new open pit mining contractor at the Murchison Gold Mine, with the new appointment expected to result in lower mining costs.

The new contractor has mobilised equipment to site and began first production from the Lewis open pit on 1 December 2012.

The new contract is structured as a variable rate contract which will result in a lower cost of mining.

The mining equipment consists of a 120 tonne excavator and 100 tonne trucks. A spare excavator is also available to ensure a high level of availability.


Resource upgrade

A reverse circulation drill program will begin this month at the NOA 2, NOA 7 and Alliance pits.

Drilling is targeting the definition of additional resources at the NOA 2 deposit, as well as the extension of the known high grade mineralisation at the NOA 7 deposit.

The program is also focused on converting the Inferred Ore at the Alliance pit to the higher confidence Measured and Indicated categories, before mining begins at the pit in March.


Production

Production in October was lower than plan, however output improved during November as the new initiatives took effect.

It is expected that production will continue to improve and meet plan in December.