PERTH (miningweekly.com) – The share price of ASX-listed Kingsgate Consolidated closed higher on Monday, after the company announced the discovery of silver at its Nueva Esperanza project, in Chile.
The Nueva Esperanza project is at feasibility stage, and is estimated to host some 1.9-million ounces of gold equivalent.
A 2016 prefeasibility study estimated that the project could deliver an average 91 000 oz of gold equivalent ounces, over a mine life of nearly 12 years. The study found that the project would likely require a capital investment of some $206-million, with operating costs estimated at around $16/t.
Kingsgate said on Monday that eight reverse circulation holes, totalling some 1 226 m, had been completed at the Cerro Blanco West exploration target, with all drill holes intersecting silver mineralisation.
The Cerro Blanco West target has now been classified as a priority drill-target, which will be followed up in the spring, with a view to expand the footprint of the currently defined mineralisation.
Furthermore, Kingsgate is also exploring a number of prospective targets within a 45 km2 zone of alteration in parallel with ongoing feasibility and permitting activities.
Kingsgate shares closed at a high of 24c a share on Monday, up from an opening price of 22.5c a share.