Kingsgate Consolidated Limited (ASX: KCN) is pleased to provide an update on the 100% owned Nueva Esperanza gold-silver project following completion of the 2014/15 exploration program and a new Mineral Resource estimate.

The significant outcomes from the program include the following:

• Discovery of the Chimberos Gold deposit, to the west of the current Chimberos pit;
• The addition of 250,000oz of gold and 5.1Moz ounces of silver to the August 2013 Mineral Resource estimate, taking total Mineral Resources to 34.6Mt at 1.7g/t AuEq60 for 1.9Moz gold equivalent;
• The relatively high grade nature of the recently discovered gold mineralisation has now led to reconsideration of agitated leach (milling) for the process route rather than heap leach; and
• Further high potential targets following initial results at Boulder, Rifle and Carachitas Central.

Following the discovery of Chimberos Gold and the substantial upgrade to the total Mineral Resources, Kingsgate has commenced a project optimisation study in conjunction with Ausenco that will utilise the comprehensive technical work completed to date and incorporate the newly enlarged Mineral Resources. It is also believed that significant opportunities may be available to benefit the project within the current mining landscape.

The study, which has an anticipated timeline of three months, is intended to deliver the following:

• Design parameters around a 2 million tonne per annum (Mtpa) agitated leach (milling) operation;
• Indicative capital and operating cost estimates;
• Updated Ore Reserve estimates; and
• Relevant information for amendments to existing permits.

While water and power options are currently in place, there has been a structural shift in the power generation and distribution market in Chile that is anticipated to significantly lower the cost of electicity for the project.

Kingsgate CEO, Greg Foulis, said "We are delighted by the results of the work completed on the project to date, which confirm our long held belief in the underlying quality and opportunity of Nueva Esperanza.

Whilst there is considerable work to be done, we intend to move the project forward in a cost efficient manner in order to de-risk and maximise the value of the project in the current metal price environment."

Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited

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