Argonaut is initiating coverage on China Gold International Resources Corp (CGI, 2099.HK). The copper Reserve grade is 0.8%, and FY13 cash costs are forecast to be ~US$1.5/lb net of significant gold and silver credits (~US$2.5/lb before credits).
Argonaut anticipates that the CSH operation will ramp up from ~140kozpa in FY13 to >260kozpa in FY15 while Jiama will increase from 12ktpa to >70kt copper via the Phase Two ramp-up (7Mtpa ROM open-pit mining and 6.6Mtpa ROM underground mining).
The Jiama copper-gold poly metallic mine is located approximately 68 kilometers northwest of the capital city of Lhasa in Tibet Autonomous Region. Commercial production commenced in September of 2010. Copper production for 2012 is estimated to reach up to 11,500 tonnes with gold and silver. The Company is currently conducting its Phase II production expansion.
CHINAGOLDINTL (02099.HK)'s subsidiary affirms gold ore reserves of 148.5 tons in Inner Mongolia Web Site: www.aastocks.com
At a Board meeting held on March 25, 2013
the Board did not recommend the payment of any dividend
in respect of the year ended December 3