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Kentor Gold: Gold Mining Underway At Murchison, Start Up On Schedule For Mid Year

Kentor Gold (ASX: KGL) is on track to join the ranks of Australian gold producers, with mining underway at the Murchison Gold Project.

The company is on track to achieve the first gold pour from Murchison in June 2012.

Initial production will come from the Lewis and Reward pits, with rates forecast at 24,000 ounces per year from a combination of open pit and underground mining.

Based on the current US$1543 spot price this would create gross revenue of nearly US$40 million in the first year of operation.

Commissioning of the ore crushing circuit has been completed, and 3,000 tonnes of stockpiled underground ore has been crushed in preparation for commissioning of the grinding circuit, which will commence in June.

Processing of grade control samples can begin this week following successful commissioning of the onsite sample preparation laboratory.

All tanks have been installed, with top of tank steel work and the remaining structural steel being installed.

The major concrete work has been completed, while the elution circuit and gold room have been refurbished and will be lifted into place this week.

Electrical work has commenced and all underground mains cabling has been run in preparation for transformer installation next week. Installation of a tailings line from the plant to the Reward pit is underway.

The Murchison project comprises the Burnakura gold and Gabanintha gold-copper sites, located about 50 kilometres south of Meekatharra in Western Australia.

A Scoping Study is underway for a heap leach operation, which will comprise Phase 2 of the development program, planned for next year.

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