KBL Mining Ltd: Pearse Gold Project - Drilling, Optimising Metallurgy and First Gold Production

Sydney, Australia (ABN Newswire) - KBL Mining Ltd. (ASX:KBL) is pleased to advise that the Pearse open cut is on schedule for delivery of first sulphide ore to the plant in August and that early results from the Pearse process optimisation have improved confidence for forecast production from sulphide ore. KBL's Managing Director, Brian Wesson commented "The planning and execution of the Pearse open cut over the last 6 weeks is testimony to the motivation and capability of the new KBL team and MAAS contractors. In August KBL will move to processing the first gold ore from Pearse."


Highlights:

- Four diamond drill holes recently completed at the Pearse deposit for metallurgical optimisation samples confirms the high grade nature of both gold and silver in the deposit. Significant intercepts include:

* 18.5m at 13 g/t Au and 182 g/t Ag; and
* 32.1m at 6.4 g/t Au and 131 g/t Ag (KMHDD024)
* 6.5m at 16.2 g/t Au and 11 g/t Ag; and
* 37m at 13 g/t Au and 99 g/t Ag; (KMHDD025)
* 26m at 7 g/t Au and 218 g/t Ag; and
* 10.1m at 11.2 g/t Au and 172 g/t Ag (KMHDD026)
* 27m at 9.3 g/t Au and 158.3 g/t Ag (KHMDD027)

- Metallurgical test work achieves concentrate grades over 100g/t gold & 750g/t silver through flotation of Pearse primary ore

- Project on track for first gold ore treatment in August


Pearse Drilling and Metallurgy

The recently completed four-hole diamond drilling program at the Pearse deposit encountered exceptional high grade Au-Ag mineralisation and confirms their presence within the deposit. Significant intersections from these drill holes are detailed in Table 1 (see link below). The drilling was designed to obtain metallurgical sample for the optimisation of the process plant flow-sheet for sulphide ore.

Metallurgical testing of the Pearse primary gold ore is being undertaken at the Australian Minmet Metallurgical Laboratory (AMML). This comprises grinding, flotation for a gold/silver concentrate and cyanide leaching of the flotation tailings. Consultant Metallurgist, Rodney Elvish commented "Early results gave flotation recoveries of 70 to 75% for both gold and silver. Concentrate grades vary with the head grade from 45 g/t to over 100 g/t gold and typically contain 750 g/t silver. Significantly arsenic and antimony grades in these concentrate are consistently well below acceptable sales levels. Cyanide leaching of the flotation tailings takes overall gold and silver recoveries to well over 80% from this refractory gold ore." Work is progressing to optimise flotation conditions ahead of planned production from these ores in August.


Pearse Development

Open cut development is on schedule for August sulphide ore delivery with the CIL plant on schedule for a November completion.

Mining contractor, MAAS Group Pty Ltd, has exceeded early performance expectations for stripping waste from the Pearse pit and first ore extraction is forecast for August. In parallel Westech is on schedule to commission the CIL plant in November. Currently, the CIL plant foundations are well advanced with July expected to see the arrival of Sun Engineering Pty Ltd for commencement of construction.

To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KBL-726265.pdf


About KBL Mining Ltd:

KBL Mining Ltd. (ASX:KBL) is an Australian resource company listed on the ASX (KBL and KBLGA) with a focus on precious and base metals. KBL's main assets include the Mineral Hill copper-gold-silver-lead-zinc project near Condobolin in New South Wales and Sorby Hills silver-lead-zinc deposit in Western Australia.

The Company has been operating the refurbished processing plant at Mineral Hill since October 2011 to produce copper concentrates with gold and silver credits. Gold production is currently expanding with increased gold grades and recoveries from underground production together with a high grade, open cut gold-silver mine to commence operation this year.

Sorby Hills is one of the world's largest near surface undeveloped lead deposits, close to port infrastructure and a short distance from Asian markets. KBL holds 75% of the project with China's largest silver, lead and gold group, Henan Yuguang Gold & Lead Co. Ltd (HYG&L) holding 25%. EPA Environmental approvals are in place.



Contact:

Brian Wesson, Managing Director
KBL Mining Ltd.
Phone: +61-2-9927-2000

KBL Mining Ltd.
Phone: +61-2-9927-2000
Fax: +61-2-9927-2050
Email: info@kblmining.com.au
www.kblmining.com.au