Kingsgate Consolidated Limited (ASX: KCN) advises that it has completed an update to its Mineral Resources and Ore Reserves as at 30 June 2015. The update takes into account mining depletion and current economic and operational assumptions. To reflect the importance of silver and other economic by-products, Mineral Resources and Ore Reserves are quoted for relevant metals and on a gold equivalent (AuEq) basis.

GROUP MINERAL RESOURCES

Group Mineral Resources (inclusive of Ore Reserves) are estimated at 4.34 million ounces of gold and 251 million ounces of silver (295.9Mt at 0.46g/t Au and 26.4g/t Ag). This equates to a reduction of 0.39 million ounces of gold (~8%) and an increase of 1 million ounces of silver compared to the 30 June 2014 estimates. On a gold equivalent basis, Group Mineral Resources are estimated at 9.95 million ounces (295.9Mt at 1.05g/t AuEq).

GROUP ORE RESERVES

Group Ore Reserves are estimated at 1.34 million ounces of gold and 65.3 million ounces of silver (61.2Mt at 0.68g/t Au and 33g/t Ag). This represents a decrease of 0.35 million ounces of gold (~21%) and a decrease of 4.4 million ounces of silver (~6%) compared to the 30 June 2014 estimates. The decrease in gold is due mainly to mining depletion from the Chatree and Challenger operations and updated pit designs at Chatree using lower metal prices.

On a gold equivalent basis, Group Ore Reserves are estimated at 2.32 million ounces (61.2Mt at 1.18g/t AuEq).

CHATREE GOLD MINE, THAILAND

Chatree Mineral Resources are estimated at 3.64 million ounces of gold (172.5Mt at 0.66g/t Au and 6.00g/t Ag) compared to 3.84 million ounces of gold for the 30 June 2014 estimates. This decrease is in line with mining depletion over the FY15 year.

Chatree Ore Reserves are estimated at 1.12 million ounces of gold (43.5Mt at 0.80g/t Au and 8.60g/t Ag) compared to 1.39 million ounces of gold as at 30 June 2014, mainly due to mining depletion and pit optimisation at lower gold and silver prices.

CHALLENGER GOLD MINE, SOUTH AUSTRALIA

Challenger Mineral Resources are estimated at 0.19 million ounces of gold (0.81Mt at 7.47g/t Au). This compares to 0.64 million ounces of gold as at 30 June 2014. The reduction is a result of mining depletion over the year with the larger component due to the exclusion of Inferred Resources below the 215 Shear where mining is not envisaged at current gold prices. The Ore Reserve estimate for Challenger is 0.08 million ounces of gold (0.59Mt at 4.05g/t Au) compared to 0.16 million ounces of gold as at 2014.

NUEVA ESPERANZA PROJECT, CHILE

As previously reported (ASX Announcement 15 July 2015), newly discovered mineralisation at Chimberos West has added in the order of 250,000 ounces of gold and 5.1 million ounces of silver to the Chimberos Mineral Resource estimate. This has resulted in a significant increase in the Mineral Resource estimate for Chimberos to 300,000 ounces of gold and 20.5 million ounces of silver contained in 11.5 million tonnes of material. This equates to 640,000 ounces of gold equivalent. With the addition of gold and silver ounces at Chimberos, total Mineral Resources for Nueva Esperanza have increased by 21% to 34.6Mt at 1.70g/t AuEq for 1.89 million ounces of gold equivalent.

Due to metallurgical and project optimisation study work still to be finalised, Ore Reserves at Nueva Esperanza have not been updated to include Chimberos Gold and, for the present, remain as announced to the ASX on 17 March 2014 at 1.04 million ounces of gold equivalent (17.1Mt at 1.89g/t AuEq).

BOWDENS SILVER, LEAD & ZINC PROJECT, NEW SOUTH WALES

The Bowdens Mineral Resource estimate has not changed from that previously reported (ASX announcement, 18 October 2013) of 88.0Mt at 47.4g/t Ag, 0.29g/t Pb and 0.39g/t Zn for a combined 182 million ounces of silver equivalent.

The Mineral Resource estimates have been reported according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

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