China Gold International Resources Corp expects to complete the Phase II Independent Feasibility Study for the Jiama Copper-Gold Polymetallic Project in Tibet Autonomous Region during the current quarter and to release an updated NI 43-101 compliant report.
The project’s production capacity expansion will be implemented in two stages. Stage one, planned for completion in the first half of 2014, includes completion of a new 20,000 tonnes/day mill. Stage two construction for an additional 20,000 tonne daily capacity is expected to be completed in the first half of 2015. The company expects Jiama to produce 26.5 million pounds of copper during the current year.
At CSH project in Inner Mongolia, the company has completed construction of its additional new 30,000 tonnes/day stand-alone crushing and ADR (Absorption, Desorption and Refining) plant systems in addition to the existing 30,000 tonnes/day facilities. The heap leaching system construction is completed as well.
The new 80km-long 110KV power line construction is expected to be completed this month. Currently, the existing 36KV power supply line is sufficient to run the crushing system and to perform test runs on the new 30,000 crushing and processing system. Expansion construction is expected to be fully completed during the current quarter. CSH Mine is expected to produce 145,000 ounces of gold in 2013.
Total production costs and total cash production costs for the nine months ended September 30, 2013 decreased for both mines compared with the same period in 2012.
At CSH, total production costs and total cash production costs of gold per ounce for the three months ended September 30, 2013 decreased compared with the same period in 2012, mainly because of lower waste rock expenditures in 2013.
At Jiama, total production cost of copper per pound for the three months ended September 30, 2013 decreased compared with the same period in 2012 due to lower amortization of mining rights. Cash production cost of copper per pound for the three months ended September 30, 2013 increased compared with the same period in 2012 due to an increase in mining and processing costs as a result of lower grade ores during the current period.
China Gold International Resources Corp’s CEO and executive director Xin Song says, “Our operations are progressing as planned and the company is making tremendous effort in costs control, capacity and output increases and we are continuously looking for innovative technological ways to improve grade and recovery.
“The company is closely monitoring production costs at both mines and will continue to make efforts to reduce those. Our cost reduction efforts keep our balance sheets strong and will help us withstand volatile metals prices. We are optimistic about future production from our quality existing assets and impressive expansion construction progress.”
To fulfil its growth strategy, the company is continually working with its controlling shareholder, China National Gold Group Corporation and other parties to identify potential international mining acquisition opportunities.