The expanded CSH mine is expected to generate US$1.25 billion of undiscounted cash flow
CHINA GOLD INTERNATIONAL RESOURCES PROVIDES PRELIMINARY 2012 OPERATING, PRODUCTION AND EXPLORATION HIGHLIGHTS AND 2013 OUTLOOK
China Gold International Resources Corp. Ltd. has provided a preliminary report on 2012 operating, production and exploration progress on both of its mines, and is sharing its goals for 2013.
2012 expected production, operating and drilling highlights
Gold production from the CSH mine increased by 4.4% from 133,541 ounces in 2011 to 139,443 ounces in 2012 Mine expansion feasibility study to double CSH mine's processing capacity to 60,000 tpd has been completed in November of 2012. Gold production will nearly double from its 2012 level of 139,443 ounces to about 260,000 ounces
Jiama - 2013 outlook
After successfully completing 40,496 meters of drilling in 2012, the Jiama mine is actively engaging in the recommended work set out in the pre-feasibility report. The company expects to complete the feasibility study and release the 43-101 report in the second quarter of 2013. The feasibility study will incorporate additional work completed in 2012 and 2013, including new drillings completed in 2012, additional geological structure study, geotechnical and geo-hydrological studies for open pit slope deign, and further metallurgical test to fine tune the floatation process.
In 2013, the Company plans to drill about 30,000 meters at a cost of approximately US$9.5 million. Main goals of the 2013 drilling program are:
- further delineating the South Pit ore body to define a potentially larger final pushback
- infill drilling to further define main high grade ore body in current underground mining area
- further delineating the gold deposit discovered in 2012 on the east side of the South Pit
- either confirming the area for waste dump (condemnation drilling) or identifying if there is a potential for another hornfels open pit
2013 Production and Operating Guidance and Drilling Plans
The Company's outlook for 2013 remains positive with the objective of building new capacity, increasing production at its operating mines and acquiring additional projects with support from the Company's largest shareholder and the largest gold producer in China, China National Gold Group CorporationPreliminary feasibility study for the Jiama Mine has been completed. Jiama's processing capacity will grow nearly 7 times from 6,000 tpd in 2012 to 40,000 tpdExpected The expanded Jiama mine is expected to generate more than US$3.6 billion of undiscounted cash flowNPV of the project is US$1.24 billion
Sufficient permanent power supply to satisfy full expansion capacity of the Jiama Mine has been secured by connecting the mine to the recently completed DC Qinghai-Tibet Power Grid Interconnection Project ("QTPGI') ...we asked CGGG to PUT Maoling Gold Project in the Liaoning Province in CGG NAME!.