Kolar Gold Ltd Final results

Kolar Gold Ltd Final results

Kolar Gold Limited, the Indian focussed gold exploration and mine development company, announces its audited results for the year ended 30 June 2011.

HIGHLIGHTS
Corporate and Operational:

  • Successful admission to trading on AIM.
  • Entered into agreements with Geomysore Services India Pvt ("GMSI") to secure tenement rights to the Kolar Gold Projects.
  • Entered into partnership with SUN Mining, part of the SUN Group, an Indian-based investor in a number of sectors including mining, for assistance in dealing with the Government regarding the Kolar Gold Projects and the possible acquisition of mining assets from BGML.
  • Commencement of drilling and evaluation at South Kolar Licence area.
  • Completion of a 40 line km IP survey along full length of the South Kolar Licence.
  • ·Appointment of four experienced board members pre-IPO.


 

Post Period Corporate and Operational:

  • Development of all planned site offices and workshop [at South Kolar].
  • Commencement of exploration activities as part of a two-rig drill programme at South Kolar.
  • First set of assay results received from the first 13 holes at the Chigargunta NE deposit, South Kolar were very encouraging.

 
Financial:

  • Raised £12 million before expenses through IPO in June.
  • Strong cash position at 30 June 2011 of £11.54m (2010: £0.740m)
  • £4.5m to be used primarily to fund tenement rights to gold assets and £3.3m on associated exploration at South, North and East Kolar up to December 2012.

Nick Spencer, Chief Executive Officer of Kolar Gold Limited, comments: "It has been a successful year for Kolar Gold and good progress has been made since we successfully listed on AIM in June. Kolar is now well capitalised and we anticipate an increasing level of operational activity in the coming quarters as we drill South Kolar and a second drill rig commences by end November. The initial drilling results have been very encouraging showing multiple high grade narrow veins close to surface. Upon receipt of the Prospecting Licence for North Kolar an additional two drill rigs will then begin exploration work as we seek to execute our medium term target of delineating 1-2Moz of gold.

 "Management, with the assistance of SUN, continues to pursue the acquisition and development of the BGML mine assets jointly with our partner, the combined BGML ex-employee unions. The Supreme Court is expected to confirm the sale process soon. I look forward to updating the market on these developments."

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