27
Projects Report
continued
u
Projects Report
Resource
MPR Geological Consultants Pty Ltd (MPR) has 
estimated Mineral Resources for the Bowdens 
silver lead zinc deposit and reviewed the quality 
of sampling and assaying for Kingsgate’s 2012 
drilling.
Estimated resources include silver, lead and zinc 
grades and are reported above silver equivalent 
cut off grades. The silver equivalence formula  
is based on commodity prices and recoveries 
provided by Kingsgate, which give the following 
function.
Ag equivalent (g/t) = Ag (g/t) + 27.5 x Pb (%) + 
22.8 x Zn (%)
The study database comprises 567 RAB, aircore, 
Reverse Circulation hammer (RC), and diamond 
drill holes completed by Kingsgate and previous 
explorers since 1989 for a combined 63,088 
metres of drilling.
A JORC-compliant resource estimate was 
completed in October 2012 and the current total 
measured, indicated and inferred resource (at a 30 
grams per tonne silver equivalent (AgEq) lower 
cut-off grade) is 182 million ounces of AgEq. 
Feasibility Study
During 2013, the process design and engi-
neering work for the Definitive Feasibility Study 
(DFS) progressed to a point where the draft 
study was close to completion as at 30 June 
2013. The study encompassed detailed process 
design based on using the most recent metal-
lurgical test results, capital and operating cost 
estimates, project water and power supply, 
infrastructure requirements and mine 
optimisation.
A specialist water supply and engineering firm 
was engaged to determine the project options 
for supply, ground and surface water manage-
ment. Separate specialist consulting firms were 
engaged to prepare the design and costing of 
the tailings storage facility and power supply for 
the Bowdens project. 
A geo-technical drilling program was largely 
completed and the results utilised in deter-
mining preliminary mine design and costing for 
an open pit mine for Bowdens including pit wall 
angles for the mine optimisation.
A geo-metallurgical test program was completed 
using core samples prepared from the major 
lithology types at the Bowdens silver project. 
The geo-metallurgical programme was success-
ful in providing important information related to 
the physical characteristics and flotation 
recovery of mineralisation from the dominant 
lithology types. This included providing confir -
mation of milling circuit parameters and overall 
improved metallurgical recovery. 
Testing of the long term geochemical stability  
of the ore and waste for potentially acid forming 
properties is ongoing, with initial weathering 
columns nearing completion. The geochemical 
characterisation results will form an important 
input to the Environmental Impact Statement 
(EIS).
EIS, Community and Project 
Approval Process
Kingsgate submitted an application for the 
Director General’s Requirements (DGRs) in 
December 2012. Following a planning focus 
meeting with various NSW government depart-
ments and agencies in February 2013, the DGR’s 
were issued in late February 2013. The DGR 
document combines the elements of the 
conceptual project development plan (CPDP) 
and sets out environmental assessment require-
ments for the proposed project development.
The preparation for lodgement of an 
Environmental Impact Statement (EIS) to the 
NSW Department of Planning (“Planning”) 
continues. It is envisaged that the EIS will be 
completed and lodged in 2014. Data for flora 
and fauna, surface water, groundwater, meteor-
ology, ambient noise and dust levels are 
collected routinely. Further investigations of 
cultural heritage, social-economic impact, traffic 
impact, soil type and agricultural suitability have 
also been undertaken on site.
There have been no serious safety incidents 
reported to date. At the end of June there were 
over 600 days Lost Time Injury free since 
Kingsgate exploration and pre-development 
activities began on site. 
Environmental, regulatory and NSW Govern-