THE BOURSE WHISPERER: KalNorth Gold Mines (ASX: KGM) has announced a second open pit mining operation at the company’s KalNorth Gold Field, unveiling plans to develop the Gambia deposit at the Kalpini Field.
With the company’s Lindsay’s Field already in production, Kalpini will be the second in the sequence of four open pit mining operations planned across the KalNorth Gold Field.
Location map showing roads and local processing plants. Source: Company announcement
The Gambia pit design is based on a Probable Reserve of 567,000 tonnes at 2.75 grams per tonne gold grade, for 50,040 ounces of gold.
KalNorth said the initial mining program has been calculated to provide the first two years of ore supply.
The company is currently looking at the potential for a larger open pit to be developed as well as the potential for more ore to be extracted by underground mining.
“Kalpini gives KalNorth the ability to continue mining and delivering ore to generate cashflow over an extended period,” KalNorth Gold Mines managing director John McKinstry said in the company’s announcement to the Australian Securities Exchange.
Planning is continuing on how best to maximise the return to the Company from Lindsay’s, Kalpini and other planned operations within the KalNorth Gold Field.”
KalNorth Gold Mines has four discovered gold fields within its tenements: Mt Jewell, Lindsay’s, Kalpini, and Kurnalpi, which collectively make up the KalNorth Gold Field.
The company is conducting drilling across the KalNorth Gold Field with the aim of increasing both Resource and Reserves, with the stated target of adding at least 500,000 ounces in calendar 2013.
Planning is already underway to develop a third and fourth mine after Lindsay’s and Kalpini.