Kentor Gold revises Murchison 5 Year Plan

THE DRILL SERGEANT: Kentor Gold (ASX: KGL) has revised its five year plan for the company’s Murchison Gold operation in Western Australia.

Kentor said the revised plan will increase production and reduce costs at the project.

The company said it is anticipating Resource estimates to be increased shortly as updates for a number of the pits at the Murchison Project are finalised following the recent completion of a 20,000 metre drilling program.

The new five year plan includes an increase in forecast average annual gold production from 24,000 to 30,700 ounces per year and a reduction in average cash costs of production from $1,223 to $1,075 per ounce of gold and strong cash flow at a range of gold prices.

“The revised five year plan has considerably strengthened the technical and financial aspects of the Murchison operation,” Kentor Gold managing director Simon Milroy said in the company’s announcement to the Australian Securities Exchange.

“At the same time, cost pressures for equipment, contractors and consultants in mining appear to be starting to reduce.

“This bodes well for improving performance as the Murchison operation continues to ramp up to full capacity.”

The forecast performance improvements at Murchison follow completion of pit optimisation and design work and the revised mining schedule.

 

Pit scheduling in the revised five year plan

 

Kentor said the key change in the schedule is the incorporation of the high grade primary ore identified at NOA7 & 8, which will be sourced from underground and the incorporation of open pit mining at the Alliance pit.

The underground mine at NOA7 & 8 will provide a longer term source of high grade ore thereby lowering cash costs.

Further drilling is being planned at Authaal and New Alliance pits to target an increase in the low grade oxide resources that testwork has demonstrated are suitable for heap leaching.