Kingsgate Consolidated Limited (ASX:KCN) announced that it has now received from the Thai Government the 4 outstanding mining leases (MLs) required to operate the Chatree Gold Mine. These leases comprise 3 Chatree South leases and the Quartz Lease, which has been pending approval since 2011 and is needed to fully optimize the A Pit.
Each of the leases is in force for a period of 10 years commencing 31 December 2021. Kingsgate can also advise that all the necessary steps for the renewal of the Metallurgical Processing Licence (MPL) is complete and approved. Akara officers are due to collect the MPL certificate from the Thai Government shortly. These approvals now enable the Chatree Gold Mine to reopen and work is being finalised on the CAPEX required for the restart which is anticipated to include the refurbishment of both Plants 1 and 2, which together, will have a total annual throughput capacity of over 5 million tonnes. In addition, a specialist recruitment agency has been appointed to manage the appointment of the critical technical staff required to operate the mine.
Focus is also now being directed to upgrade and report Kingsgate’s Mineral Resources and Ore Reserves Statement. Following the approval of the MPL, an updated JORC compliant reserve statement is in the process of being finalised.
In addition, Kingsgate has been investigating possible financing options including dialogue with potential lenders to expedite the restart of the mine.
Kingsgate acknowledges the cooperation and goodwill shown by the Thai Government via the issuance of these key licences, and the re-opening of an enhanced Chatree Gold Mine will provide high value growth opportunities for the company, local communities, businesses, and the Thai economy. While some additional items are still under negotiation, the priority remains the re-opening of the mine.
