VIETNAM
THAILAND
LA OS
CAMBODIA
10°
100°
20°
LA OS
AM
CAMBODIA
10°
CHALLENGERCHALLENGER
30°
35°
140°
135°
130°
VIC
QLD
NSW
NT
WA
Adelaide
BOWDENS
SILVER
BOWDENS
SILVER
Newcastle
Sydney
Dubbo
Mudgee
30°
35°
150°
145°
QLD
TA S
VIC
SA
70°
50°
20°
30°
40°
3
COPIAPO
NUEVA
ESPERANZA
COPIAPO
NUEVA
ESPERANZA
Santiago
La Serena
Antofagasta
Chañaral
ARGENTINA
BOLIVIA
PERU
0 300100 200
Kilometres
Highway
Freeway
Power lines
Hydro power dam
Thermal power station
Khon Kaen
Kh
KhCHATREECHATREE
Chiang
Mai
Bangkok
Chumphon
Phuket
CHALLENGER
GOLD MINE
CHALLENGER
GOLD MINE
Labyrinth
Bulgunnia
Barton West
Cundeelee
(Tropicana Belt)
Blue Dam
Calingiri
Wongan Hills
Kukerin
Bullock Pool
Nanicup Bridge
Holleton West
Golden Point
Northling
Bryah
Perenjori
Yalla Burra
Barton Central
Tenements Area
20
www.kingsgate.com.au
Challenger  
Gold Mine
South Australia
Summary
The Challenger Mine produced 66,216 ounces  
of gold for the year with an average milled grade 
of 3.91 grams per tonne (g/t), and a total cash 
cost of $1,107 per ounce. The grade was low due 
to a shortfall in ore supply from the mine that was 
supplemented by low grade ore from stockpiles. 
Higher dilution in stopes at the base of the mine 
and depletion on those levels due to the addi-
tional displacement of the ore horizons following 
the identification of the ‘215 Shear’, contributed 
to the lower than expected production from the 
lower levels. A shortfall in underground develop-
ment also limited access to ore sources.
Development and mining commenced at the 
higher grade Challenger West orebody during 
the year but was insufficient to offset the short-
fall from the base of the mine.
Because of the poor ore recovery from the 
bottom of the mine and the drop in the gold 
price, a strategic review of the mine operation 
was carried out. This resulted in a new plan that 
focuses on the higher grade Challenger West as 
the main ore supply.
Ongoing improvements in site communications 
continued with the installation of a dedicated 
microwave link to the site. This greatly improves 
u
Operations Report