Perth-based Kingrose Mining Ltd revealed on Friday that it has poured its first batch of gold and silver bars from its Indonesian mining project in Way Lingo following the site's year-long development that cost $13.39 million.

The company said that the combined pouring of gold and silver bars amounted to a total weight of 5.8 kilograms, kicking off a relatively good start for a gold exploration site with a projected annual output of 45,000 ounces of gold at an initial rate.

Kingrose said that from the annual output rate, the company is expecting to fetch an estimated company margin of $US1,000 per ounce as dictated by current gold prices, with a cash cost of $US147 per ounce, so far one of the lowest gold mining cost in the world.

Executive chairman John Morris attributed the low-cost production to the Sumatra site's yield of high grade ore, stressing that "Way Linggo is the latest example of how important high-grade ore is to the financial success of a mine."

Kingrose said that further expansion of the mine site are in the works as it added that the company is currently negotiating with the regional government of the island of Sardinia in Italy.

The company's Italian base metals project is undergoing re-assessment for possibility that the site's large dumps of zinc, lead and silver tailings could be re-processed.

As of 1156 AEST on Friday, Kingrose shares were firmly trading at $1.00.