We believe there is significant potential to upgrade the inferred resource of the
hornfels and skarn deposits to the measured and indicated category following
completion of the extensive 2011 drill program.
Following positive results from the 2011 drill program, management has stated that they
intend to commence an expansion program at CSH. Our discussion with management
confirms that the actual amount of expansion will depend on the updated resource
After discussions with management, we believe that the new
estimate could potentially double the existing measured and indicated resource to
around 10 million ounces of gold (inclusive of reserves) based on the exploration work
done on the project since the last estimate (discussed later in this report).
The expansion could see a potential 100% increase from the current production rate of
30,000 tpd to 60,000!...Lets hope Jiama matches CSH in reserves it will be a market Cap changer!