Kingsgate Consolidated High Grade Gold Intersections Continue at Chatree Gold Mine

10:53 AEST Nov 18, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Sydney, Australia (ABN Newswire) - Kingsgate Consolidated Limited (ASX: KCN) (PINK:KSKGF) is pleased to announce that the current deeper drilling program continues to confirm the underground potential at the Chatree Gold Mine. Recent drilling at both the Chatree and Chatree North mine areas has intersected new high grade gold zones at the S and A East pits respectively.

At S Pit, in the Chatree mine area, the drill collars were located 200 metres(m) west of the pit and include the following intersections:


Drill hole 7436RC:

- 10m at 5.99g/t gold, from 21m down hole including,

2m at 19.2g/t gold, from 21m down hole and,

1m at 17.1g/t gold, from 26m down hole. (These zones are split by a small dyke.)

- 1m at 8.0g/t gold from 125m down hole.


Drill hole 7441RC:

- 2m at 4.69g/t gold from 25m down hole.


Drill hole 7438RC:

- 1m at 10.9g/t gold from 61m down hole.

Drill hole 7438RC is 430m south of 7436RC indicating a potential strike length of the higher grade structure of over 400m.

These intersections indicate the possibility of high grade structures within close proximity to the high grade S Pit structure and enhance the potential of underground development.

At Chatree North, drilling has intersected another significant zone in the A East Pit. The best gold assay results include:


Drill hole 7501RD:

- 10m at 2.85g/t gold, from 250m down hole including,

5.85m at 4.43g/t gold, from 250m down hole.


This intersection lies at about 250m below the surface and is within a previously reported structure and highlights the potential to expand limits of this vein system.

Drilling is continuing at both pit areas to expand the known mineralisation which is still open to the north and south and to depth.

Kingsgate Managing Director, Mr Gavin Thomas, said, 'We are very encouraged by these intercepts as the large structures are now over 2km in length and with higher gold grade we firmly believe this could be suitable for underground mining.'

'The potential for supplementary higher grade underground ore would have a significant effect on the overall return from Chatree', he said.

For the complete Kingsgate Consolidated Limited announcement including tables and figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/64214-ASX-KCN-515845.pdf


About Kingsgate Consolidated Limited:

Kingsgate Consolidated Limited (ASX:KCN) is a low cost gold producer and a highly successful gold mining and exploration company, traded on the Australian Stock Exchange. The company owns and operates the Chatree gold mine in central Thailand through its Thai subsidiary, Akara Mining Limited, using world's best practice for safe, environmental and socially responsible operations.

A growing reserve/resource position within granted mining leases lies in a gold province which exhibits world class potential, with recent near mine gold discoveries.



Contact:

Gavin Thomas, Managing Director & CEO
Kingsgate Consolidated Limited
Tel: +61-2-8256-4800

Stephen Promnitz, Corporate Development Manager
Kingsgate Consolidated Limited
Tel: +61-2-8256-4800
http://www.kingsgate.com.au