THE BOURSE WHISPERER: KBL Mining (ASX: KBL) has commenced development works at the Pearse Open Cut, within the company’s Mineral Hill project in New South Wales.
KBL said production is scheduled commence in August 2015 with operations initially focusing on extraction of transitional and sulphide ore, which will be processed through the existing mill flotation plant with the tails being stored for processing when the CIL plant comes online in
“The beginning of development of Pearse is another significant milestone,” KBL Mining managing director Brian Wesson said in the company’s announcement to the Australian Securities Exchange.
“Following the recent financing the company is now accelerating operations and development with mining of Pearse open pit beginning in June and the production of ore from August 2015.
“The extraction of ore from Pearse will have a significant positive impact on the company’s cash flow.”
The Pearse deposit has a current Proven and Probable Ore Reserve of 235,000 tonnes at 6.9 grams per tonne gold and 72g/t silver.
KBL indicated an update on the reserve is expected to be finalised during June 2015.
The pit is planned to supply approximately 30,000 tonnes of ore per month for 9 to 10 months from August 2015, based on a 1.5g/t gold cut off.
KBL modelling has estimated production forecasts of 35,000 ounces to 40,000 ounces of gold and 280,000 ounces to 290,000 ounces of silver, in a combination of concentrate and gold bullion.
KBL said it already has marketing arrangements in place for the sale of the gold concentrates, while the bullion is expected to be refined and sold through a local mint.