Majestic Gold says gold production at its Song Jiagou gold mine increased in the December quarter for a total of 4813 ounces from 456,487 tonnes of ore.
“We are very pleased with the gold production results in the first quarter of the 2013 financial year,” says the company’s president Rod Husband. “The increase in production from October to December reflects our efforts to improve operations and we look forward to continued progress in production through the remainder of the year.”
The 2.32 million ounce Song Jiagou project is on Jiaodong Peninsula in eastern China’s Shandong Province. Majestic has scheduled annual production levels at the mine to continue ramping up to a 100,000 ounce target during 2013. The company is working on an application to the Chinese government to expand the mining zone and permit to 7400 tonnes per day which will contribute to the planned production increase.
A successful private placement in 2012 raised $35.5 million to pay off the company’s capital expenses associated with the construction of the new $45 million mill at Song Jiagou.
In other news, the company has appointed a new director to its Board, announcing Gengshu Miao has accepted the position. Gengshu Miao is an economist who has spent his career in the Chinese mining and investment sector, holding a number of senior positions including president of the China National Metals and Minerals Import and Export Corporation (now known as China Minmetals). He also served as a member of the National Committee of the Chinese People’s Political Consultative Conference, a political advisory body that meets annually to make important national level political decisions.
“We are extremely honoured to have Mr Miao join Majestic. His participation in the company is a confirmation of our recognition in China. He will be actively assisting management in the pursuit of our initiatives in China and Hong Kong, including dealings with the Chinese Government on permitting issues, merger and acquisition opportunities, and our potential listing on the Hong Kong Exchange,” says Rod Husband.