Kentor Gold Strikes Further High Grade Gold At Lewis Pit Ahead Of First Production wow gold 2o

Kentor Gold Strikes Further High Grade Gold At Lewis Pit Ahead Of First ProductionKentor Gold (ASX: KGL) continues to strike high grade gold at the planned Lewis pit wow gold po, within the Murchison Gold Project, with the latest drilling results indicating potential for growth.Results from the latest reverse circulation drilling at the Lewis pit fall both within and adjacent to the planned pit, with highlights including:This follows previous bonanza grade intercepts which included 1 metre at 474 gw2 gold.5g/t gold within a broader intercept of 5 metres at 102.2g/t gold from 43 metres.Kentor managing director Simon Milroy said:"We have some great mineralisation sitting just outside the existing pit design and it remains open to the west on the central section and to the north of the existing Lewis pit design."This drilling confirms the potential for high grade mineralisation observed in historical drilling and in Kentor's diamond holes."The Lewis pit was mined to a depth of 20 metres by a previous owner, with current pit designs extending the pit to the north and increasing the depth to 70 metres.Mineralisation remains open down dip on the central section, and along strike to the north east. Infill and grade control drilling will begin at Lewis this week wow gold kopen.Resource drilling on other gold deposits at the Murchison project is progressing well with the first stage of resource drilling at New Alliance completed and assays pending.Approaching production mid-yearKentor is set to join the ranks of Australian gold producers in less than two months, with the company on schedule for the first gold pour from the Murchison project in June 2012.Murchison comprises the Burnakura gold and Gabanintha gold-copper sites, located about 50 kilometres south of Meekatharra.Initial production will come from the Lewis and Reward pits at Burnakura, with rates forecast at 24,000 ounces per year from a combination of open pit and underground mining.Based on the current US$1720 spot price this would create gross revenue of over US$41 million in the first year of operation.The first phase of production always has a higher cost due to lower throughput rates, but can often be quickly brought down wow gold ideal, with Kentor forecasting a cash operating cost of A$1,223 per ounce - which still allows for a significant margin wow gold.Kentor said, "While (cash operating costs are) high due to the low initial throughput rate of the process plant, the cost is expected to reduce significantly in the second phase with the small additional capital cost and in the subsequent phases."
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