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Kingsgate Consolidated (ASX: KCN) produced 40,224 ounces of gold in the December quarter from its Chatree mine in Central Thailand.

This figure was above market expectations and heralds forecast production of up to 140,000 ounces of gold for the year to June 2010. Nearly 70,000 ounces of gold was produced in the half year ending 31 December 2009. Managing Director, Gavin Thomas said Kingsgate was now in a position to deliver growth plans of the back off this excellent result which maintains Kingsgate as a “lowest quartile global gold cost producer”.
“This fact is supported by Blackrock – the world’s largest institutional fund manager – which during the quarter became a 9.8 percent shareholder in Kingsgate”, Mr Thomas said.
With the increase in the gold price the company has the potential to re-open old pits at Chatree.
“Our cash costs are very good – down to US$312/ounce and this includes a US$73/oz royalty to the Thai Government”, he said. “The grade increased to 2.0g/t gold for the quarter enabling gold production costs of US$239/oz on site”. In February after nearly eight years in production Kingsgate is expected to pour its first millionth ounce of gold and it still has proven 1.5 million ounces of gold ore reserves and this is expected to grow over the coming years.
Plans for an increase in reserves and resources is targeted together with a proposed plant expansion to double the processing capacity.
It was recently announced that within the mining leases new gold zones beneath the closed D pit at Chatree have been identified. Drill results include 14m @ 3.8 g/t gold, which shows the potential to re-open the D Pit.
Media Enquiries:

Suzanne Blake 0414 233 500
suzblake@optusnet.com.au
All information available at:
www.kingsgate.com.au/news‐desk

New gold veins and extensions to gold zones have been identified in recent drilling beneath and around the previously closed D Pit at Kingsgate’s Chatree, within the original mining leases.

Near surface gold results show the potential to re-open and expand the D Pit.

More news here – http://www.kingsgate.com.au/news-desk/

Van Eck’s Highly Anticipated Market Vectors Junior Miners ETF (With Kingsgate Included) Is Set for Its Debut
Van Eck’s Market Vector Junior Miners ETF is set for trading to begin on Wednesday, November 11, 2009 under the ticker symbol (GDXJ). The arrival of this ETF couldn’t come at a better time as gold continues to reach new all time highs. Investors looking to get into the gold craze have found it to be worth investing in gold miners as the current Market Vectors Gold Miners ETF (GDX) has outperformed the SPDR Gold ETF (GLD) by a substantial amount. (See the chart)
The Market Vectors Junior Miners ETF will represent the “Junior Gold Miners Index (MVGDXJ)” and have a total net annual operating expense of .60%. The ETF will represent 38 junior mining and exploration companies that have mining potential.

For more information, see the Kingsgate News Desk – http://www.kingsgate.com.au/news-desk/