Preparation work for construction of the heap leaching facility at CNMC Goldmine Holdings’ Sokor Gold Project has commenced, with production expected to start by October.
CNMC also obtained an export licence for a further 50,000 tonnes of ore to be exported for processing and sales overseas. Continued extraction of non-gold metals is expected to continue during the second half of 2012.
CNMC has tripled its revenue in the second quarter of 2012 compared to the same period last year. The company recorded a 332% increase in revenue to US$5.18 million, with production increasing by 65% to 1314 ounces.
CNMC says a higher gold price during the quarter also helped to post the massive revenue increase. The company’s selling price reached a high of US$1716.10 per ounce compared to US$1557.31 per ounce in the second quarter of 2011.
During the reporting period, CNMC exported 9000 tonnes of ore consisting of gold, silver, lead and zinc to a Chinese customer for processing. The non-gold metals contributed and extra US$2.96 million to the company’s revenue for the quarter. There were no non-gold sales in the corresponding 2011 quarter.
CNMC’s executive director Chris Lim says, “Our second quarter profitability reaffirms the economic viability of the Sokor mine. This also marks our transformation from a gold explorer to a profitable gold producer. We expect the group’s financial performance to receive further boost upon the commencement of our heap leaching operation and from the sales of non-gold metals.”
Singapore-based CNMC began operating in 2006, exploring and mining gold and processing ore into gold dore. It is focused on development of its Sokor project which is in the Malaysian state of Kelantan. Sokor has a JORC-compliant resource of 8.59 million tonnes @ 1.7 grams/tonne for 503,000 ounces of gold.