Download Report

ASX Release
13 May, 2015
Kidman Resources Limited
ABN 88 143 526 096
Corporate Details:
ASX Code: KDR
Issued capital:
119.61M ordinary shares
Substantial Shareholders:
Holdex Nominees 11.3m (9.45%)
Directors:
Non-Executive Chairman:
Garrick Higgins
Managing Director:
Martin Donohue
Non-Executive Director:
Brad Evans
Chief Operating Officer (COO):
Tony Davis
Chief Financial Officer (CFO):
Melanie Leydin
Company Secretaries:
Justin Mouchacca
Melanie Leydin
Drilling Starts at Burbanks
gold project in WA
First production set for September Quarter
Kidman Resources (ASX: KDR) is pleased to advise that drilling is
starting this week at its recently-acquired Burbanks gold mine near
Coolgardie in WA in the next step of the Company’s strategy to start
production in the coming quarter.
The drilling will involve a series of RC holes in the existing Christmas
open pit to target known mineralisation. The results will be used to
calculate a JORC-compliant Resource and Mining Reserve.
Since acquiring Burbanks at the end of April, Kidman has suspended
production to refine the site layout and enable the drilling programs to
start. The drilling is aimed at establishing JORC Reserves in both the
open pit and underground operations.
Kidman acquired an 80 per cent stake in Burbanks and the Coolgardie
North project from private interests for $3 million plus $2.4 million in
working capital. It has an option to increase this to 100 per cent.
Contact Details:
Kidman Resources Limited
Suite 3, Level 4
12 - 20 Flinders Lane
Melbourne
Victoria 3000
Australia
Tel: +61 (0)3 9671 3801
Fax: +61 (0)3 9671 3523
Drilling has outlined extensive gold mineralisation at both projects and
there is outstanding exploration potential at each. But due to their
private ownership, the projects have not been drilled to JORC
standards.
The Burbanks Mining Centre has historical production of 366,340
ounces at an average grade of 13.9gpt from both open pit and
underground sources.
Email:
[email protected]
Website:
www.kidmanresources.com.au
Kidman Resources Limited – ASX Announcement
Page 1 of 3
Christmas Open pit being prepared for RC Drilling program
Cashflow generated by the initial production at Burbanks will help fund a more extensive
ongoing drilling campaign over the following six to eight months targeting both open cut
and underground mineralisation.
Kidman Managing Director Martin Donohue said “the Burbanks drilling program was the
next step in ensuring the Company delivered on the undertakings it gave to the market at
the time of the acquisition.”
“We believe we have made an outstanding purchase and now we are determined to ensure
that we implement the clear step-by-step strategy we have outlined,” said Mr Donohue.
“Results from the drilling in the open pit are expected to start flowing within coming weeks,
allowing us to proceed quickly with the JORC Resource calculation.
“This will in turn pave the way for the resumption of production and cashflow, which will
then enable us to embark on a more extensive drilling program.
‘Our step-by-step strategy is aimed at unlocking that potential in a controlled manner that
minimises risks and maximises opportunities for shareholders.”
Kidman Resources Limited – ASX Announcement
Page 2 of 3
Kidman Background
Kidman Resources is a precious and base metals company currently establishing the
Burbanks Gold mine near Coolgardie in WA for production to commence in the Sept Qtr
2015.
Kidman also owns advanced exploration projects in the Northern Territory (Home of Bullion
– Cu, Au, Pb, Zn, Ag/ Prospect D - Ni, Cu) and New South Wales.
In New South Wales the company has the Crowl Creek Project which is host to numerous
projects such as Murrays (Au) Blind Calf (Cu, Au) and Three Peaks (Cu, Pb, Ag).
The company also owns the Browns Reef project in the southern part of the Cobar Basin (Zn,
Pb, Ag, Cu)
For further information on the company’s portfolio of projects please refer to the website
at;
For further information on the company’s portfolio of projects please refer to the website at:
www.kidmanresources.com.au
Martin Donohue (Managing Director)
Email: [email protected]
Media:
Read Corporate
Paul Armstrong / Nicholas Read
+61 8 9388 1474
Kidman Resources Limited – ASX Announcement
Page 3 of 3