KBL Mining Limited (ASX: KBL) is a step closer to unlocking...

KBL Mining Limited (ASX: KBL) is a step closer to unlocking significant shareholder value by becoming a leading low cost gold-silver producer, with the processing of high grade ore from the Pearse open cut deposit underway at the Mineral Hill Mine, NSW.

Significantly, head grades are currently ranging between 6-7 grams per tonne gold and 40-70 grams per tonne silver, with KBL targeting a 50+ g/t gold-silver concentrate as final product for shipment.

Over the past 12 months, the management team has worked tirelessly to ensure the Company's successful transition from an underground copper-lead-zinc producer (with gold and silver credits) to a high grade, open cut gold-silver producer with the view that it would create a substantial realisation of underlying value for shareholders.

With the processing of the Pearse high grade ore now successfully underway, the Company remains focused on the construction of the CIL plant which is progressing ahead of schedule and is on-track for commissioning in November.

Since August 2014, KBL has achieved a number of significant corporate and operational milestones which have paved the way for the true underlying value at the Mineral Hill Mine to be unlocked. These milestones include raising A$35 million to eradicate existing debts and the implementation of a strategic operational program which resulted in the highest development rates recorded in the Company's history.

KBL Mining's Managing Director Brian Wesson commented,
"The team at KBL Mining is extremely excited to have achieved this monumental milestone which has the Company poised to become a leading, low-cost gold and silver producer."

"We believe the decision to focus on the production of a high grade gold-silver concentrate from the Pearse open cut deposit will be key to unlocking significant shareholder value in coming months."

"Importantly for our shareholders, KBL retains the significant upside of being able to return to copper, zinc and lead production when market conditions improve adding further underlying value to the Company."

For more information visit kblmining.com.au.