Kingsrose Mining Ltd. Unscheduled Mill Stoppage At Way Linggo
12.04.2011 | ABN Newswire
09:50 AEST Apr 12, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.Perth, Australia (ABN Newswire) - During a scheduled inspection of both ball mills at the beginning of the month, it was noted that excessive wear to the liners warranted their immediate replacement and Kingsrose Mining Limited (ASX: KRM) has decided not to operate the plant and risk damage to the mills until new liners can be fitted. Further, inspection of the mills bearings during downtime has revealed noticeable deterioration and issues with the ball mill trunnion bearings and lube system. Temporary repairs have been carried out and as of yesterday evening the mills were again operating.
The Company has now been advised that replacement mill liners and another bearing will be on site and fitted on or about 18th April 2011. Unfortunately spares located on-site were deemed insufficient.
The Company has assessed the impact of this incident and has taken measures to ensure it has matters covered moving forward.
The Company expects its April's production being reduced by around half. The Company has a scheduled shutdown planned in June to commission and tie-in the new SAG Mill and management forecasts that production for the June quarter will now be around 8,000 ounces gold.
The above problem is disappointing in light of the solid operational improvements site management have made over the past six months and particularly after achieving a commendable result in the March quarter with gold production reaching 10,463 ounces and silver production of 123,774 ounces with preliminary cash cost estimates after silver credits being around US$25 per ounce.
The Company will provide a further update in its March Quarterly Activities Report due later this month.
About Kingsrose Mining Limited:
Kingsrose Mining Limited (ASX: KRM) is an Australia-based company engaged in the development and mining at the Comet Vale Mine, Kalgoorlie, in conjunction with Reed Resources Limited, pursuant to a joint venture arrangement. In February 2009, the Company acquired MM Gold Pty Ltd. The Company completed its acquisition of the majority interest of Way Linggo gold/silver mining project in February 2009. The project is located on the island of Sumatra, Indonesia. Kingsrose owns 85% of Indonesian company PT Natarang Mining.
Contact:
Jeannette P. Smith
Company Secretary
Kingsrose Mining Limited
Tel: +61-8-9486-1149
Fax: +61-8-9486-1151
Email: info@kingsrosemining.com.au