TIDMPGL
RNS Number : 8012Z
Peninsular Gold Limited
22 March 2012
PENINSULAR GOLD LIMITED
('Peninsular' or the 'Company')
Operations and Exploration Update
Highlights
-- Q4 2011 production of 2,926 ozs of gold from 243,337 tonnes of tailings throughput
-- Processing of in-situ oxide ore has now commenced
-- Q1 2012 showing significant improvement in gold production to
date (3,408 ozs for the two month period to end Feb)
-- Ongoing front end and crushing and milling circuit review to
cope with more clay-rich oxide material
-- New 2,000m by 500m mineralised body discovered 2km north of Tersang
Raub Operations
The Raub CIL Plant processed an estimated 243,337 tonnes (which
included approximately 37,000 tonnes of in-situ ore) during the
fourth quarter of 2011 and produced a total of 2,926ozs of gold,
compared with 4,524 ozs during Q4 2010. Gold production in the
quarter was reduced, compared to both Q3 2011 and the comparable
period in 2010, due to both a lower average recovery rate of 62%
and lower tonnage throughput. The lower recovery was in part due to
some impact from the commissioning of the new circuit. The reduced
tonnage throughput was largely due to major maintenance and the
shutdown whilst modifications to the feed preparation area were
underway.
In addition, modifications were made to the slurry section of
the plant during this time and operational difficulties were
encountered with regard to the ability of the newly installed
trommels to handle some of the in-situ ore, particularly the very
clayey oxide material. A technical review is now being undertaken
of the entire circuit from the crushing and milling stages through
to the revised feed/slurrying area to ensure the whole pre CIL
process will cope effectively with the full range of in-situ
material.
Following this review, the modified circuit is expected to be
completed by Q3 2012 although the mining and treatment of the
in-situ oxide material has already begun. The additional costs, if
any, associated with the review and any changes with the crushing
and milling circuit are currently expected to be covered from
operating cash flows.
However, despite these challenges management is pleased to
announce that gold production has improved significantly during
January (1,621 ounces) and February (1,787 ounces) compared to
average production in 2011 with the commencement of the mining and
processing of the in-situ ore (during the second half of December),
utilising the modified feed and slurrying area. The softer oxide
ore is being processed with the harder material being stockpiled
for future treatment. The gold recovery from the treated oxide
material has been consistent with the metallurgical testwork
averaging approximately 86%. A further improvement in gold
production is expected in the coming months as the benefits of the
revised plant feed and slurrying process are realised .
During Q1 2012 operational management on site has been
strengthened with some key hires in the roles of mining, geology
and metallurgy from within the region. This has brought in more
extensive experience of the local conditions and ore types being
mined and processed.
Exploration
Northern Licence Areas
The first independent estimation of a JORC compliant resource at
Tersang is being finalised and the release is expected within the
next few weeks.
Diamond drilling to the West at the foot of the main Tersang
hill and below the alluvial flat (see announcement dated 11
November 2011) confirmed the extension of the mineralised intrusive
which remains open in this direction. Further drilling is required
to assess the potential of this extension which, if successful, may
significantly increase the Tersang resource.
The ongoing regional exploration of the Company over its
24,830acres of highly prospective northern grounds is proving
successful with the recent discovery, only 2 km North of Tersang,
at Kekabu of a new mineralised body similar in nature and footprint
to Tersang. The gold is apparently hosted in a largely developed
felsite visible over a 2,000m x 500m area but still open to the
North.
The Company is conducting a 100m x 25m soil sampling survey over
a 1,700m x 1,000m area that includes the intrusive footprint; the
samples will be assayed for Au and multi-elements.
This discovery of a potential orebody very close to Tersang
increases the potential of the already identified main Tersang
orebody.
Following this discovery, regional exploration will be extended
along the Tersang-Kekabu-Tenggelan trend where several
stream-sediment anomalies (associated with alluvial mining areas)
remain to be explored in detail. The expectation here is of further
discoveries similar to Tersang, Kekabu or Tenggelan.
Raub Project
At Raub, significant mineralised sections have been recorded
from the assay of the 2 latest diamond drillholes including 13.5m @
0.97 g/t from surface to 13.5m, 36m @ 1.10 g/t from 183.2m to
219.2m, and 6.50m @ 1.21 g/t from 310m to 316.5m in the same
11BKDDH-20 hole and 3.85m @ 2.51 g/t from 60.00 to 63.85m in the
11BKDDH-18 hole. These results show that large sections remain
untouched in the envelope of the underground works.
A detailed structural review of the whole deposit will soon be
conducted by an external consultant with the objective of defining
the best targets of the next deep drilling programme.
From To Metres Au (g/t)
Hole ID
------------ ------- ------- ------- ---------
11BKDDH-18 25.30 27.45 2.15 0.96
------------ ------- ------- ------- ---------
11BKDDH-18 60.00 63.85 3.85 2.51
------------ ------- ------- ------- ---------
11BKDDH-18 69.40 70.20 0.80 1.36
------------ ------- ------- ------- ---------
11BKDDH-18 135.55 137.80 2.25 1.28
------------ ------- ------- ------- ---------
11BKDDH-18 139.20 142.80 3.60 1.24
------------ ------- ------- ------- ---------
11BKDDH-20 0.00 13.50 13.50 0.97
------------ ------- ------- ------- ---------
11BKDDH-20 108.90 111.00 2.10 1.12
------------ ------- ------- ------- ---------
11BKDDH-20 118.50 120.15 1.65 1.76
------------ ------- ------- ------- ---------
11BKDDH-20 151.65 153.55 1.90 1.05
------------ ------- ------- ------- ---------
11BKDDH-20 183.20 219.20 36.00 1.10
------------ ------- ------- ------- ---------
11BKDDH-20 310.00 316.50 6.50 1.21
------------ ------- ------- ------- ---------
A Raub resource update is now expected during H2 2012, once the
detailed structural review of the whole deposit and the subsequent
diamond drilling campaign have been completed.
Dr. Yves Cheze of Peninsular Gold commented:
" The recent results of the regional exploration of our highly
prospective grounds are very exciting especially with the recent
discovery at Kekabu of a new mineralised intrusive similar in size
and close to Tersang, and located along the 8 km lineament hosting
the Tersang and Tenggelan deposits currently being explored by the
Company. This new discovery, combined with the recent
identification of the extension at depth of Tersang and the
presence of several stream-sediments anomalies not yet explored ,
reveals the exceptional potential of this portion of the Company's
grounds.
At Raub, the latest drilling results below the oxide ore confirm
the existence of significant mineralised sections of primary ore
inside the envelope of the old underground mining. These recent
encouraging results will support the new detailed geo-structural
review of the whole Raub deposit designed to define the best deep
drilling targets."
Extension of Time to Seek Judicial Review - Appeal to the
Federal Court
As announced on 11 January, 2012 the Federal Court of Malaysia
('Federal Court') granted leave to the Appellants to appeal to the
Federal Court on one of five questions of law raised against the
decision of the Court of Appeal of Malaysia. The Appellants
instituted legal proceedings on 21 March, 2008 and are out of time
in seeking to judicially review the approval granted by the
Malaysian Department of Environment to Raub Australian Gold Mining
Sdn Bhd ('RAGM': a 100% subsidiary of Peninsular) in 1997. A date
for the hearing of the appeal before the Federal Court has now been
fixed for 10 July, 2012. RAGM in opposing the said appeal will
continue to vigorously protect its interests.
End
Dato' Sri Andrew TY Kam Patrick Watson
Chairman and Chief Executive Finance Director
Peninsular Gold Limited Peninsular Gold Ltd.
Tel: +60 (0)3 2698 8381 Tel: +44 (0)7799 885653
------------------------------- ---------------------------
Samantha Harrison / Jen Boorer Colin Rowbury
Nominated Advisor Broker
Ambrian Partners Limited Daniel Stewart & Co. Ltd.
Tel: +44 (0)20 7634 4712 Tel: +44 (0)20 7776 6936
------------------------------- ---------------------------
Adviser's Declaration
The information in this report that relates to Exploration
Results for the Raub, Tersang and Kekabu project areas are based on
information compiled by Dr. Yves Cheze. Dr. Yves Cheze is a Member
of the Australian Institute of Geoscientists (AIG). The Directors
of the Company are satisfied that Dr. Cheze has sufficient
experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting Exploration
Results, Mineral Resources and Ore Reserves" as published by the
Joint Ore Reserves Committee of the Australasian Institute of
Mining and Metallurgy, Australian Institute of Geoscientists and
Minerals Council of Australia. Dr. Yves Cheze consents to the
inclusion in the report of the matters based on his information in
the form and context in which it appears and confirms that this
information is accurate and not false or misleading.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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