Kolar Gold Limited Trading Update (4363W)
28 Gennaio 2013 - 8:00AM
UK Regulatory
TIDMKGLD
RNS Number : 4363W
Kolar Gold Limited
28 January 2013
28 January 2013
Kolar Gold Ltd
Trading Update
Kolar Gold Limited ("Kolar Gold" or the "Company") the Indian
focused gold exploration and mine development company, today
announces an update in relation to its Indian operations.
HIGHLIGHTS
-- Review of corporate and exploration strategy completed.
-- Increased focus on the management of key licence applications
and closer cooperation with partner GMSI in the permitting
process.
-- The parties have identified additional local mining partners to also assist permitting.
-- Cash reserves of GBP6.5 million at 31 December 2012.
-- Increase in management resources in India and closure of Brisbane office.
-- The Government of India and BGML employee societies have
agreed to the sale tender route for revival of the historic BGML
mine.
Focus on key licences
The Board has completed a full review of its exploration and
licence acquisition strategy with a view to improve its
effectiveness over the near and medium term. The Board is strongly
of the view that the timeous grant of new licences is critical to
the future of Kolar Gold and its stakeholders. The Company and its
partner, Geomysore Services India Private Limited ("GMSI"), have
agreed therefore to work closer together and concentrate on jointly
pursuing key gold licences that the Board has prioritised. The
parties also intend to engage additional local mining partners to
assist with the permitting process and provide on-going technical
mining services and support. The Board believes that this enhanced
focus and effort should accelerate the process of securing key
Prospecting Licences and Mining Leases in India.
Exploration
The large data compilation task recently undertaken at South
Kolar is presently being modelled and interpreted. This includes
recent detailed geological mapping and geochemical sampling which
indicates a number of prospective anomalies in the licence area
that will require further close spaced induced polarization,
trenching and follow up drilling. In addition, the Company is
actively seeking ways to secure additional quality gold licences
that are drill ready, to further broaden its Indian gold
portfolio.
Management
The Company intends to increase its management resources in
India and close down its Australian office by the end of Q1 2013.
Following the closure, Company CEO, Nick Spencer, and GM, Chris
Clowes, will operate out of the well-established GMSI head office
in Bangalore, thereby achieving a number of costs savings. The
Board believes it is imperative that Kolar Gold senior management
be in-country to work with GMSI and partners to focus on and drive
the permitting process.
BGML update
The Government of India and BGML ex-employee society have agreed
to the sale tender route for revival of the historic BGML mine. The
parties await the Supreme Court order before proceeding with the
prepared tender, which is expected later this year.
Cash position
Kolar Gold had cash reserves of GBP6.5 million at 31 December
2012 and the Board plans to carefully deploy this capital,
principally on securing key gold licence areas, but also on
conducting further focused exploration at the South Kolar PL area.
In order to minimise cash burn the Company has deployed a number of
initiatives to reduce its monthly cost base.
Commenting today, Kolar Gold's CEO, Nick Spencer, said: "Kolar
is entering an important period and it is key that we strengthen
our team in India and focus efforts with GMSI and partners on a
number of key gold licence permits and projects. We are confident
that this is the most prudent way to utilise our funds to achieve
maximum shareholder value over the longer term. We remain committed
to building India's leading gold exploration and mine development
company with an increased portfolio of well funded, quality gold
projects."
For further information please contact:
Kolar Gold Limited
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Nick Spencer +617 3846 0211
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N+1 Singer
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Nomad and Joint Broker
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James Maxwell/Jenny Wyllie +44 20 7496 3000
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Ocean Equities Limited
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Joint Broker
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Will Slack +44 20 7786 4370
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Tavistock Communications
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Ed Portman / Jessica Fontaine +44 20 7920 3150
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About Kolar Gold Limited:
Kolar Gold is an Indian gold exploration and development
company, traded on the AIM market (Ticker: KGLD) that has an
experienced international board and strong local partners.
Kolar Gold has rights to explore and develop one prospecting
licence and 13 further licence applications in the Kolar Gold Belt,
an 80 kilometre long Archaean Greenstone Belt, in Southern India.
The Kolar Gold Belt is one of the most prospective underdeveloped
Archaean Greenstone Belts in the world and is regarded by Mr Andrew
J Vigar of Mining Associates Limited, the Competent Person, as
comparable to the Archaean Greenstone Belts of South Africa, Canada
and Western Australia which have similar geology, structure and
style of mineralisation. This project area includes 32 known
mineralised prospects and covers 568 square kilometres in the
southern states of Andhra Pradesh, Karnataka and Tamil Nadu. KGL
commenced exploration on the first Prospecting Licence in South
Kolar in February 2011.
Kolar Gold is also jointly pursuing, with the mine employee
unions, the acquisition and revival of the neighbouring historic
Kolar Gold Fields which has produced 25 million ounces of gold at
15.9 grams per tonne over 120 years until closure in 2001.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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