Kalgoorlie Mining Company eyes next phase at Bullant Gold Mine

Kalgoorlie Mining Company (ASX: KMC) is moving into the next phase of operation at the Bullant Gold Mine as the company ramps up production.

Development at Bullant restarted in June 2011, with 1,489 metres of development achieved in the first six months.

So far, work has focused on the East Lode, previously operated by Barrick Gold (NYSE: ABX, TSX:  ABX), along with existing workings on the Main Lode and the area below.

Over the next three months Kalgoorlie Mining is planning 1,037 metres of development, which is expected to yield 36,430 tonnes at 3.75 grams per tonne (g/t) gold along with 21,769 tonnes of stoped ore at 4.78g/t gold.

About 60% of total production over the next three months will come from development, however the company is opening up new areas as existing areas are stoped out.

On December 14, Kalgoorlie Mining will begin its largest delivery to date to Barrick Gold’s nearby Kanowna Belle facilities, as per the ore purchase agreements between the two companies.

The delivery, of 13,411 tonnes of ore at 4.37g/t gold, will be the sixth of its kind to Kanowna Belle.

To date, Kalgoorlie Mining has delivered and sold 41,694 tonnes of ore to Barrick, recovering 4,063.9 ounces of gold and generating $6.97 million in total revenue.

Over the next three months, the company expects to deliver ore containing an additional 7,733 ounces of gold, equal to more than $13 million in revenue.

Meanwhile, diamond drilling in the southern areas of the East Lode is expected to confirm the potential for mineralisation.

The company expects to upgrade the East Lode Resource in the near future.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23350/kalgoorlie-mining-company-eyes-next-phase-at-bullant-gold-mine-23350.html