Krm22 Share Discussion Threads

[kiwoz48] 02/2/2012 15:28

Kingsrose Mining Ltd (Kingsrose) was listed on the ASX in December 2007 under the epic KRM. Kingsrose's main objective is to become a significant gold producer. Kingsrose completed its acquisition of the majority interest in the high grade Way Linggo gold/silver mining project in February 2009. This asset covers 10,540 hectares of highly prospective land in Sumatra Indonesia.

Kingsrose has an 85% interest in the Way Linggo gold operation in Sumatra Indonesia. Indonesian geologist Mr Herryansjah Husinsjah owns the other 15% interest.

Kingsrose is one of the world's lowest cost gold producers. This status is achieved through a combination of high quality narrow seam mining in a low cost country and also the additional income that comes from simultaneously producing silver. Production costs are being targeted at US$150/ounce of gold after silver credits.
KRM is currently targeting annual production of 45k ounces of gold and 500k ounces of silver. This level of production generates a margin of $1500/oz and free cash flow of over US$60 million. When the mill is expanded they will be targeting 64k ounces of gold and 710k ounces of silver.

The average gold grade of processed ore is 15 g/t.

Kingsrose has the potential to capitalise on various 'massive' growth opportunities over the next few years:
1. The 12 drilling rigs currently operating should generate lots of high grade intersections
2. As additional these intersections are modelled resource upgrades are expected.
3. The mill is currently capable of processing 400 tonnes of ore per day but can easily be upgraded so that it processes 600 tonnes per day.
4. An inaugural dividend of 5 cents a share is expected to be announced shortly

[smilingmickey] 25/11/2011 18:44

have just listened to the AGM presentation on the web. Sorely tempted to increase my holding.
The new SAG mill is now operating well and there seems to be plenty of spare milling capacity, so the bottleneck is now the availability of ore.
They are establishing a new Mine at Talang Santo where they have established veins with a strike length of 500 metres to a depth of 300 metres. An adit is being driven into the hillside and was said to be close to the accessing the veins. Also expecting initial resource from Talang Santo around year end.
So extra ore should be available from Talang Santo above what they are extracting from Way Lingo next year to fill the mill and process plant.
In September qr milling rate was around 330tpd giving about 10,000 oz gold, plus silver. Capacity of the mill said to be 600 tpd so plenty of scope to increase production with no major increase in capital other than mine development costs.
We could see production rising significantly in calendar 2012.

[smilingmickey] 05/9/2011 08:46

Holism,
You are absolutely correct that the reserves at Way Lingo do not cover much forward production.
I'm not sure how much of their drilling campaign is devoted to expanding the Way Lingo resource. Hopefully as with MML the vein structure continues with depth.
SM

[holism] 03/9/2011 07:33

at S44 an oz of silver cost of production ZERO!! Resource figure before the end of October should confirm a significant increase in mine life.There are at least 11 drills in operation. KRM has its own assay laboratory manned by an independent outfit giving daily feed back on progress so important to a vein miner.This looks an exciting prospect. Everything appears to be on the increase- resource production and cash flow.Excellent management etc.

[holism] 24/8/2011 11:35

Plus good article dated 13th August also on website. "Low-cost ...than others". seems to me the company needs to spend some time and money increasing the resource figure. In these difficult times production isn't necessarily going to propel the share price. However a new commercial discovery increase in production and potentially a dividend before the year is out should.

[smilingmickey] 09/8/2011 10:00

There are a number of new postings on the KRM web site.

Here is link to their 9th August 2011 Presentation.

[hectorp] 22/7/2011 08:01

I don't expect it would be possible to cover up a fatality at Co-0.

[holism] 08/7/2011 09:25

Interesting comment Hectorp- one of the reasons I sold my MML was the strong rumour of fatalities at the Co-O mine. I think Bill Philips and for that matter Peter Cooke are both mindful of this aspect. If you ask around the rumour at Co-O is toally believable, it was never confirmed by the company and I dont intend to expand. Your point though is well made.I am confident that the management at KRM are totally committed to the local people.

[hectorp] 07/7/2011 23:56

Nice bit of coverage h.

My only concern is probably with the primitive mining methods , 600 locals and only 6 western mining people around, there will be a serious accident one day.
It does appear the gear and costs are cheap, the wages are cheap and maybe life is also cheap there. This seems very different from the much more up to date organisation at Co-O by MML.

[smilingmickey] 29/6/2011 15:08

More drilling results. Seem to intercept the veins quite deep down. So do these veins start near the surface? Rock chip samples syas maybe they do?

[holism] 24/6/2011 08:58

Hectorp, this is a shre for the medium term, results in July will be worth reading, so much to come in the ramp up stage. Market cap a fraction of MML.I would like to see confirmation of the effect of the sag mill progress on drilling and hopefullys an expanding mine life capable of supporting 100kozs pa. This is all possible. And we have the Sardinian thing which could be fun!!

[hectorp] 24/6/2011 08:33

Only 2%? whats the significance of this though?
- krm up 9c overnight, and has risen over that 200Day MA. Managed to make one last purchase on Tuesday night.

[noirua] 22/6/2011 23:42

Don't forget that YANZHOU have 2% royalty rights over Way Linggo gold production that go back to 2002. When a former director of Kingrose, Dr Michael Andrews, when a director of Auiron Energy purchased the mining rights.

[hectorp] 22/6/2011 23:27

They can only do it while we are in the downturn for gold miners.. and this wont last. In fact it may just be over!
Some say gold miners could double over 1-2 years as a sector once this weak spell is over.

[holism] 17/6/2011 13:19

Madness what sort of idiot would short a gold miner with increasing production resources cash flow etc and the lowest cost of production? Just wish I had some surplus cash!!

[hectorp] 15/6/2011 11:38

Huge shorting on KRM: ( from Hotcopper thread) up to 30% of shares are trading short! ( sit tight, won't last much longer)



6-06-11.....30%
2-06-11.....35%
1-06-11.....34%

31-05-11....31%
30-05-11....24%
27-05-11....20%
25-05011....38%
24-05-11....38%
23-05-11....31%
20-05-11....31%
19-05-11....26%
18-05-11....23%
17-05-11....20%
16-05011....24%
13-05-11....20%
12-05-11....18%
11-05-11....NIL
10-05-11....16%
9-05-11.....13%
6-05-11......7%

[hectorp] 15/6/2011 11:35

I see we have drifted below a support level, all hands to the pumps and good luck to us.

[hectorp] 10/6/2011 09:17

Pretty decent, Mr black.

On a more general note The sector isn't in favour at the moment and the summer isn't a good time to have much cash in gold miners, for example, this interview


holism- I've no knowledge of Sardinia/elections etc.

[davidblack] 01/6/2011 08:52

1st June Chairman John Morris buys

100,000 shares at $1.525
Plus a further 50,000 of options at $1.34.

$219,500 is a nice vote of confidence I think?

[holism] 31/5/2011 13:14

Hectorp- do you know anything about the local elections in Sardinia? Will the outcome of the second round or any outcome have a bearing on the Sardinian venture? News here would be interesting although I think the current share price does not include much value.

[hectorp] 31/5/2011 13:07

Think there is good resource down there yet to come mickey. A lot of the current resource is open to length and dip. I don't go along with this 'another MML' however as that could disappoint.
Added a few K more at the lower MA last week.

- Last night, some sort of breakout upside on the chart and very good volume traded too. +10c.

[smilingmickey] 27/5/2011 09:21

Hello Hectorp,
I hold some of these.
Drilling at a rate of "only" 35k metres/annum rate in Q1, presumably means we can expect an increase as the year proceeds. This is a big commitment and should generate a lot of data and hopefully some regular updates. The maps on the web site look very promising, but of course it's all in the results.

SM

[hectorp] 26/5/2011 18:48

Look towards the next resource update, eg, from 29th April we had this:

....Exploration activity increased and by the end of the quarter there were seven exploration rigs in operation. Significant intercepts received at three new prospects in the northern area of the landholding (Talang Toha, Talang Santo and Talang Samin) ranged from 0.5 g/t up to 25.1 g/t for gold and 1.0 up to 1,048 g/t for silver.
Updated structural interpretation of the northern area suggests all three targets are potentially connected as part of a larger system that is still open in all directions.....
.....Although there are now 7 drill rigs working at site, drilling for the quarter has only totalled 8,757m, surveys and effectively only first pass fences of holes with wide spacing have been drilled across the veins in each target
area.
Some excellent and highly encouraging results have been received so far and Kingsrose looks forward to the ensuing quarter when additional and infill drilling can start to define the true commercial potential of these defined areas.