Kingsrose Mining has unveiled Talang Santo Resource update.

Kingsrose managing director Scott Huffadine said: "this is an excellent result, especially in light of the fact that Talang Santo is a new operation within its first 12 months of production. This Resource upgrade clearly demonstrates the increasing size and scale of the Talang Santo Resource base. Furthermore, these results support the grade uplift we have been realising from the 2012 Resource as we get more clarity on the grade distribution throughout the orebody and increase the informing data density.

"The fact that such a large proportion of the Resource remains in the Inferred category at a grade of 5.23 g/t Au bodes well for the work we have scheduled to infill and subsequently upgrade this Resource category. This infill work will also support the extension of the current mine plan below the 6 Level. Importantly, the deepest drill intersection still shows strong structure and mineralisation 150 metres below the 6 Level, 400 metres below surface. Talang Santo remains open both at depth and along strike".

The 2015 Talang Santo Mineral Resource upgrade represents the first significant update to the resource since production at Talang Santo commenced in July 2014.

The pre-production Resource was based upon 83 diamond drill holes, whereas the updated Mineral Resource adds another 39 diamond drill holes and over 3,200 development face samples to the informing data package.

The most significant variance between the 2012 and 2015 Talang Santo Mineral Resource is the significant uplift in grade, and subsequent contained ounces. Whilst a component of this update is a function of the increased data density, and better definition of the higher-grade extensions to the mineralised zone via further drilling, the key driver to this upgrade is the ability to more completely sample gold bearing clay during underground development. This clay is partially washed out during diamond drilling by drilling fluids, and consequently areas that are significantly or totally informed by diamond drilling have a tendency to under-report the contained gold within the system.

This Resource upgrade is well supported by mill head grade and gold production recorded to date at Talang Santo, and is similar to the uplift seen during production at the Way Linggo mine where gold bearing clay loss during drilling was also observed.

Kingsrose continues to work on quantifying the uplift between drilling and development grades, however, for reporting purposes, a conservative approach was adopted and thus no factorisation of the resource dominated by drill hole data was undertaken.

Pleasingly, interpretation of system geometry and structural architecture of the deposit has remained consistent between Mineral Resource estimates, providing a high level of confidence that the Mineral Resource estimate is robust.

Resource Development Strategy

Future drilling is planned from the 5 Level to increase the confidence in the Inferred Resource component, particularly the extensions of the main ore zone at Talang Santo and the along strike targets of the Central and North West Mawi veins.

Drilling below the 6 Level is currently limited; however the intersections returned to date are significant and support the continuity of the mineralisation well below this area. This can be seen in the Plates below, showing the diamond drill intercepts from the deeper parts of the orebody identified in. Plate 1 shows the main ore shoot and illustrates the strong mineralisation that it is anticipated that the 5 Level development will access. Plates 2 and 3 show intersections from the deeper holes drilled below the current mine plan. They illustrate the solid structure and the grade distribution within the mineralised zone at depth.