text: During 2013, the process design and engi- 
  neering work for the Definitive Feasibility Study 
  (“DFS”) progressed to a point where the study 
  was close to draft 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. 
  
  During the year Kingsgate sold its exploration 
  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 
  a 35.54% interest in 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. Kingsgate’s holding was 
  reduced to 27.04% following a rights issue by 
  Caravel post year-end). 
  
  (Challenger Deeps) and depletion on those levels 
  due to the additional 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 development 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 Challenger Deeps. 