13:42 AEST May 4, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.
Sydney, Australia (ABN Newswire) - Kingsgate Consolidated Limited
(ASX: KCN) (PINK: KSKGF) said today that exploration drilling targeting extensions to the Challenger West shoot at the Challenger Mine in South Australia has intersected spectacular gold mineralisation including 2.16 metres grading 109.83 g/t gold.
The current drill program is designed to test the continuity of the high grade Challenger West Shoot below currently defined reserves by drilling from an exploration drive 400 metres below the surface on the 800 Level. This program was recently initiated since the merger to better define the upside potential of the gold mineralization at the Challenger Mine.
The latest results give significant confirmation of the potential to identify and define mineralised shoots in the upper levels of the mine that could generate increased resources and reserves over the next 12 to 24 months.
Kingsgate Managing Director, Gavin Thomas, said, 'We are extremely pleased with this early success in the renewed exploration program to find additional gold resources close to the surface at Challenger.'
'While early days, it is a strong endorsement of the confidence and belief we have in the potential to add to the gold resources at Challenger.'
See the following link for the visible gold in drill core and a schematic section: http://www.abnnewswire.net/media/en/docs/540482.pdf
About Kingsgate Consolidated Limited
Kingsgate Consolidated Limited (ASX: KCN) is a low cost gold producer and a highly successful gold mining and exploration company, traded on the Australian Stock Exchange. The company owns and operates the Chatree gold mine in central Thailand through its Thai subsidiary, Akara Mining Limited, using world's best practice for safe, environmental and socially responsible operations.
A growing reserve/resource position within granted mining leases lies in a gold province which exhibits world class potential, with recent near mine gold discoveries.
Managing Director & CEO
Kingsgate Consolidated Limited