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Kentor Gold Extends Mineralisation At Murchison, Potential For Increased Gold Production

Gold-producer Kentor Gold (ASX: KGL) has extended mineralsation on the periphery of the NOA7/8 ore body through reverse circulation drilling at the wholly owned Murchison Gold Mine in Western Australia.

The importance of the extension is that it fits into Kentor's proposed plan for underground mining of high grade ore at NOA 7/8 commencing in 2014, which has the potential to increase production and lower costs at Murchison.

Highlighting the prospectivity, all six drill holes intersected significant mineralisation, with a new shallow mineralised zone identified beneath NOA8 pit.

Best results include:

- 12BNRC0281: 22 metres at 2.13g/t gold from 181 metres; which includes 3 metres at 4.18g/t gold; 2 metres at 5.00g/t gold; and 2 metres at 5.20g/t gold;
- 12BNRC0283 18 metres at 2.4g/t gold from 191 metres; which includes 3 metres at 4.13g/t gold and 4 metres at 4.19g/t gold; and
- 13BNRC0285: 6 metres at 5.78g/t gold from 233 metres, including 2 metres at 14.10g/t gold.

Another plus for Kentor is that the mineralsation remains open along strike and down dip, providing the opportunity for additional discoveries - which would further enhance the economics of the project.

Simon Milroy, managing director of Kentor, commented on the latest discovery: "This is an outstanding outcome with all six reverse circulation holes indicating extensions of gold mineralisation beyond the NOA 7/8 orebody.

"In the last four months we have announced increased mineral Resources at Murchison - at both the NOA 7/8 and Alliance deposits. These latest results highlight the potential to further increase high grade Resources at NOA 7/8.

"Proposed underground mining of high grade ore at NOA 7/8 commencing in 2014 is a key to the company's plan to increase production and lower costs at Murchison."

Kentor achieves goal

Towards the end of 2012 Kentor targeted the potential of NOA7/8 through a reverse circulation drilling program, aiming to extend the ore zones down dip and along strike - which the company has now achieved.

The program was also designed to increase the confidence categories of the resource to Indicated, with particular emphasis on positions close to planned development.

Holes 12BNRC0281-3 and 13BNRC0284-5 (results above) were drilled to test for depth extensions to a shallow south plunging shoot in the central lower portion of the resource, and intersected wide zones of mineralisation associated with quartz breccia within felsic volcanic rocks and shale.

The outcome is that the new drilling broadens the high-grade central core of the resource that remains open to the south.

Kentor's new exploration

Kentor said that additional drilling is required to test for extensions to the ore zones that have been identified following the recent drilling. The shallow north plunge was evident from drilling completed in mid- 2012 but extensions down dip and along strike to the north within the oxide zone are now also considered priority targets.

The Scoping Study on NOA7/8 completed in 2012 identified several areas of Inferred Resources that could potentially be added to the mining schedule if the resources were upgraded. These areas will also be the target of a future drilling program.


The significance of today's announcement is that the new extended mineralised area has the potential to increase production and lower costs at Murchison, through proposed underground mining of high grade ore at NOA 7/8 in 2014.

Gold production at the Murchison project commenced in mid-2012, with the potential to add gold-copper production from the neighbouring Gabanintha deposit.

In the final three months of 2012 Kentor made operational benefits at Murchison, which helped to accelerate production during January of this year.

Not to be forgotten are Kentor's other projects including the Jervois Copper-Silver-Gold Project in the Northern Territory which has a 170,000 t copper, 11.6Moz silver, maiden 69,000 oz gold Resource, with a Bankable feasibility study underway - and the Andash Gold-Copper Project in the Kyrgyz Republic.

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