Goodbye $1.20, page-67

Dalts, your post is not factually correct.

At the time of the purchase of NE Chatree was operating it was plain that they wished to diversify their base in that region. They had a mine that was expecting to generate cash in 2016.First production at Nueva Esperanza has been targeted for the first half of 2016.

17th March 2014
"First production at , has been targeted for the first half of 2016."

https://www.miningweekly.com/article/kingsgate-says-chile-precious-metals-mine-may-cost-140m-2014-03-17

(This time the link works)

You said:-

"Management did not have a second mine that was generating revenue. This is quite a big thing for exactly this reason. It is a risk mitigation play. If KCN had some revenue over the seven years, there would have been no issue with finance at all. No cap raise etc."

It is plain that the aim was to have such a mine and the region for that mine was a matter that Gavin Thomas has taken into account when the mine was purchased. It was obviously a risk minimisation play. Something unfortunate happened on the market at this very time.

https://www.kingsgate.com.au/wp-content/uploads/documents/170314.pdf

17 March 2014
Via ASX Online FOR PUBLIC RELEASE
(20 pages)
Manager
Company Announcements Office
Australian Securities Exchange
Nueva Esperanza, Chile – Definitive Feasibility Study Delivers Strong Results
Kingsgate Consolidated Limited (ASX: KCN) is pleased to provide a summary of the results of the Definitive Feasibility
Study (“DFS”) of the Nueva Esperanza silver and gold heap leach project in Chile. The study supports the technical
viability and financial robustness of the project as well as identifying further upside potential within the existing
resource base and the already identified exploration targets within the Mining Lease.
Highlights
 Proved and Probable ore reserves total 17.1 million tonnes at 97 g/t silver and 0.27 g/t gold (113 g/t
silver equivalent (AgEq) or 1.89 g/t gold equivalent (AuEq))
 Average annual production of 7,500,000 oz of AgEq (approximately 125,000 oz AuEq)
 Initial +6 year mine life with significant potential for extensions
 Capital costs of US$140 million including a US$10 million contingency
 Average cash operating costs of US$11.44/oz AgEq or US$687/oz AuEq (incl. royalties)
 First production is targeted in first half of 2016 calendar year
Kingsgate is currently working with its consultants to finalise environmental approvals. This process is well advanced
and final approvals are expected within six months.
The DFS also provides the basis to assess the optimum financing strategy for the project. Discussions are underway
with potential debt financiers with several financing options being considered.
Gavin Thomas, Kingsgate’s Managing Director and CEO said, “We are delighted by the results of the feasibility study,
which support our long held belief in the underlying quality and inherent value of the Nueva Esperanza project.
The final Nueva Esperanza Definitive Feasibility Study is a result of over three years continuous evaluation and
several iterations to determine the optimal process route delivering the most financially robust outcome.”
“We remain optimistic in the mineral endowment of the immediate vicinity, which has the potential to provide
Kingsgate with a long, sustainable operating presence in this region.”
“The decision to begin construction is anticipated in the second half of this year and will put Kingsgate back on a
growth path and validate the underlying value of the project acquisition”, he said.
Gavin Thomas
Managing Director & CEO
Kingsgate Consolidated Limited

As to the quality of NE as an asset your South African mates are second guessing Gavin Thomas. You can read about him here:

disallowed/national/gavin-thomas--geologist-and-legend-of-australian-mining-20140606-zrzzj.html.

Did your mates have as stellar a career? You have to admit Lihir was a good find.....
He gave a speech to investors at an AGM I think but I can't find it.

I did find this:

Gavin Thomas thought this project was a "bull terrier" (at 2.25). At that stage the numbers were the subject of an independent audit (3.40-4.05). NE has a history of bonanza grades and had doubled in size as a result of Kingsgate's exploration. It may depend on the time at which you made the inquiry of your mates and the material they looked at. The belt has 100 million ounces of gold equivalent.


Kingsgate began acquiring NE in 2009 and continued in 2011.
https://www.kingsgate.com.au/nueva-esperanza-overview/

The reserves and resources are substantial.