text: As a consequence, feasibility work has transi- 
  tioned to assess a lower capital cost and lower 
  power requirement option, namely the potential 
  for heap leach processing. Recently completed 
  metallurgical testwork demonstrated that 
  processing of mineralisation from all three 
  deposits by heap leaching has the potential to 
  be technically and economically feasible and, as 
  a consequence, may become the preferred 
  alternative for development. 
  
  Sale of Exploration Assets 
  On 28 March 2013, the Group sold its explora- 
  tion assets in Western Australia and Queensland 
  through the sale of shares in its subsidiary 
  company, Quadrio Resources Limited, to Caravel 
  Minerals Limited (“Caravel”), an Australian 
  company listed on the ASX. 
  
  Kingsgate received 135,000,000 fully paid 
  ordinary shares in the issued capital of Caravel 
  and 20,000,000 unlisted options to acquire 
  Caravel shares exercisable at 10 cents on or 
  before three years from the date of issue. 
  Subsequent to the sale, Kingsgate became the 
  largest shareholder in Caravel with 35.54% held 
  at 30 June 2013. Kingsgate’s holding in Caravel 
  reduced to 27.04% post 30 June 2013 following 
  a rights issue by Caravel that Kingsgate did not 
  participate in. 
  
  Environmental approval for the original Arqueros 
  Project was granted in July 2013. 