Kingsgate Faces Ore Reserve Declines Despite New Chatree SE Complex Estimate

Overview of Kingsgate’s 2025 Resource and Reserve Update

Kingsgate Consolidated Limited (ASX, KCN) has released its Mineral Resources and Ore Reserves Statement for October 2025, covering its flagship Chatree Gold Mine in Thailand and the Nueva Esperanza Project in Chile. The update incorporates new geological data, refined modelling techniques, and the application of Reasonable Prospects of Eventual Economic Extraction (RPEEE) open-pit optimisation shells, aligning the company’s reporting with international best practice.

The Group now reports Mineral Resources containing 3.6 million ounces of gold and 86 million ounces of silver, alongside Ore Reserves of 1.5 million ounces of gold and 51 million ounces of silver. These figures reflect both the depletion from mining activities to June 2025 and the impact of updated economic assumptions.

Chatree Project, New South-East Complex and Reserve Life

A highlight of the update is the inaugural Mineral Resource estimate for the Chatree South-East Complex, located approximately 3 kilometres from the main Chatree deposit. This new resource is estimated to contain 0.55 million ounces of gold and 4.2 million ounces of silver, based on only 35% of planned infill drilling, suggesting significant exploration upside.

Meanwhile, the Chatree Ore Reserves have decreased slightly by 2% to 1.22 million ounces of gold at a US$1950 per ounce gold price assumption, preserving a robust nine-year reserve life. This modest decline accounts for mining depletion and reflects refinements in the geological model and economic parameters. The company continues to operate Chatree using conventional open-pit mining and established carbon-in-leach processing methods, with ongoing environmental management and regulatory compliance.

Nueva Esperanza, Updated Models and Cost Pressures

At Nueva Esperanza, the combined Mineral Resources now stand at approximately 0.36 million ounces of gold and 60.7 million ounces of silver within RPEEE-constrained pit shells. This represents a decrease of around 27% in both gold and silver compared to the previous year, largely due to updated geological models and the application of economic extraction criteria.

Ore Reserves at Nueva Esperanza have also declined, now estimated at 0.19 million ounces of gold and 39.7 million ounces of silver. The reduction is attributed to revised modifying factors, including increased mining and processing costs. The project remains underpinned by a comprehensive pre-feasibility study, with mining planned via conventional open-pit methods and processing through a 2 million tonnes per annum plant employing cyanide leach and Merrill-Crowe recovery techniques.

Methodological Enhancements and Governance

Notably, Kingsgate has enhanced its reporting methodology by incorporating RPEEE open-pit optimisation shells for the first time in its resource estimates. This approach excludes mineralisation that does not currently meet economic extraction criteria, providing a more robust and transparent resource declaration. The company also plans to consider underground RPEEE testing in future updates to capture deeper mineralisation potential.

The update is supported by extensive drilling data, rigorous sampling and assay protocols, and independent verification by competent persons in accordance with the JORC Code and ASX Listing Rules. Environmental and social governance remains a priority, with ongoing community engagement and adherence to environmental standards at both project sites.

Looking Ahead

While the resource additions at Chatree’s South-East Complex offer promising growth potential, the overall slight declines in Ore Reserves underscore the challenges of balancing depletion with economic viability amid fluctuating commodity prices and cost pressures. Kingsgate’s commitment to methodological rigor and operational discipline will be critical as it advances feasibility studies and regulatory approvals, particularly for the new Chatree SE Complex.