VANCOUVER, Feb. 27, 2014 /PRNewswire/ - China Gold International Resources Co. Ltd. (TSX:CGG) (HKEx: 2099) ("China Gold International Resources" or the "Company") is pleased to provide preliminary guidance on 2013 operating, production and exploration progress on both of its mines and share its goals for 2014.
2013 Production, Operating and Exploration Highlights
- Gold production from the Chang Shan Hao Gold Mine ("CSH Mine") mine slightly decreased by 5.8% from 139,443 ounces in 2012 to 131,418 ounces in 2013. This decline is partially due to lower grades of ore mined and longer recovery periods caused by the growing height of the leaching heap.
- Cumulative gold recovery at CSH has been steadily increasing over the last few years: from 39% in 2010, to 46% in 2011, to 53% in 2012 and to 54% in 2013.
- The company has successfully completed a new 30,000 tonne per day ("tpd") stand-alone crushing, heap leaching and ADR (Absorption, Desorption and Refining) plant in addition to the existing 30,000 tpd facility. A new 80 kilometer long government-built 110 Kilovolt ("KV") power line was completed by end of November 2013. CSH Mine's processing capacity increased from 30,000 tpd to 60,000 tpd.
- Copper production from the Jiama Copper-Gold Polymetallic Mine ("Jiama Mine" or "Jiama") mine increased by 10% from 25,820,417 pounds in 2012 to 28,323,626 pounds in 2013. This is the third full year of increasing production for the Jiama mine.
- On December 20, 2013, in accordance with the schedule, the Phase II expansion NI 43-101 compliant feasibility study for Jiama has been successfully completed by the Changchun Gold Design Institute in conjunction with independent consulting firm Mining One and the Company's management. The results showed measured and indicated copper mineral resources increased to 1,486 million tonnes averaging 0.41% Cu from 1,053 million tonnes averaging 0.44% Cu; contained copper metal increased to 6.14 million tonnes from 4.64 million tonnes. The proved and probable copper mineral reserves increased to 441 million tonnes at a grade of 0.61% Cu from 363 million tonnes at 0.77% Cu. The feasibility study estimated that the project has an NPV (9%) of $1.3 billion and is expected to generate a nominal after tax cash flow of $5.8 billion.
- By the end of December 2013, the Jiama Mine completed its 2013 drilling program for the total of 3,434 meters in the existing Tongqianshan open pit. Drilling results will be available in the first half of 2014. The major goals are to further define the main high grade ore body in the current open pit mining area and also to better understand the geological structural on controlling metallogenic regularity. Total exploration expenditures were approximately US$ 4.32 million.
Mr. Bing Liu, CEO of the Company, commented, "During 2013, we have successfully upheld our promises to the shareholders about our expansion plans on both of our mines. The Company reached monumental milestones by completing the expansion construction at CSH and finishing Jiama's feasibility study. Last year was difficult for most metals producers as metal prices and share values declined. We consider metal prices fluctuations to be a part of normal business cycle.
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