Kingsgate Consolidated Limited - Drilling Continues to Extend High Grade Gold Zones at Chatree Gold Mine

10:38 AEST Dec 15, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Sydney, Australia (ABN Newswire) - Recent resource drilling at Kingsgate Consolidated Limited (ASX: KCN) (PINK: KSKGF) Chatree Gold Mine has confirmed high grade gold structures below the A Pit and continues to extend the high grade zones in S Pit. This further demonstrates progress in the underground mining potential at Chatree.

At A Pit, the best gold intersection in drill hole 7509RD is:

- 8m at 6.00g/t gold, from 295m down hole including,

4m at 11.30g/t gold, from 299m down hole.

This hole confirms a new high grade lens within the existing A East 2 mineralised zone which is currently defined over a strike length of approximately 500 metres. Further drilling is planned to follow up this zone down dip and along strike to assess the high grade 'feeder zone' potential.

At S Pit, follow-up drilling has confirmed and extended previously reported high grade gold zones below the pit. Drill holes 7510RC and 7511RC have confirmed that S Main Lode continues a further 100 metres below the current pit floor (see section 1715mN). The best gold intersections are:

- 3m at 4.01g/t gold from 117 metres down hole (Hole 7510RC), and

- 5m at 6.63g/t gold from 156m down hole including,

4m at 8.11g/t gold from 157m metres down hole (Hole 7511RC).

Drill hole 7453RC has extended the depth of the new S2 structure, located to the west of S Pit, by

over 100 metres giving a total depth below surface of 200-250 metres (see section 1715mN). The best gold intersection is:

- 5m at 3.60g/t gold from 243m down hole including,

2m at 6.38g/t gold from 245m metres down hole.

Further drilling at S Pit has continued to confirm mineralization along strike with the best gold intersections:

- 4m at 5.36g/t gold from 104m down hole including,

2m at 9.72g/tgold, from 105 metres down hole (Hole 7449RC); and,

- 8m at 3.87g/t gold from 50m down hole including,

2m at 11.9g/t gold from 52m down hole (Hole 7454RC).

Kingsgate Managing Director, Mr Gavin Thomas, said, 'The drilling continues to confirm and extend the high grade gold mineralised structures below the A and S pits further enhancing the potential for underground mining at Chatree.'

'Similar high grade epithermal feeder zones in other parts of the world have established major underground gold mines.'

'If the deeper drilling success continues at Chatree over the next 12 months, or so, we believe we will be in a position to include initial underground resources in an upgraded resource base.'

For the complete Kingsgate announcement including figures and drill result tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/64819-ASX-KCN-520594.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.



Contact:

Gavin Thomas
Managing Director & CEO
Kingsgate Consolidated Limited
Tel: +61-2-8256-4800
http://www.kingsgate.com.au