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Kingsgate strikes gold at Chang Puek, 20km from Chatree

ASX News, Materials
ASX:KCN      MCAP $360.8M
24 November 2023 11:23 (AEDT)

Chatree plant closure in December 2016. Source: Kingsgate Consolidated

Kingsgate Consolidated (ASX:KCN) has unearthed fresh gold intercepts 20 kilometres from the Chatree Gold Mine.

New high grade gold hits follow a successful RC drill run earlier this year.

New assays include 2.13g/t gold over 18 metres, and 20 metres at 3.87 g/t of gold from 132 metres depth.

“Quality results”

KCN’s CEO was succinct in his reflections on the latest assays.

“It’s pleasing to see quality results confirming our [belief] there are contiguous zones to the south-east,” Gibson said.

“The original hole in the Chang Puek prospect identified that there was mineralisation in a previously unexplored area, and these additional holes confirm that it remains open at depth.”

“We will continue to focus our efforts along this corridor into 2024, as we look to confirm an extension of the existing Chatree system.”

Possible commercial system

The company believes the current drill results point to commercial-scale contiguous zone in the Chang Puek prospect, which holds similar mineralisation to Chatree.

That remains to be seen. The stock has also left lingering scars on many long-term shareholders minds, evident by looking at the HotCopper forums.

Kingsgate was involved in a lengthy court battle with the Thai government in the mid-late 2010’s after its assets were, as some put it, seized by the South East Asian kingdom.

Chatree has also long been accused of causing sickness in villages nearby once operations began in 2001.

KCN shares were trading at $1.24 at 9:31 am AEDT.

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