DOUBLING of mill processing capacity at China Gold International Resources Corp’s CSH Gold Project in Inner Mongolia is credited for an increase in gold production. During the March quarter of 2015 production increased 51% from 27,118 ounces in the corresponding quarter of 2014 to 41,033 ounces.
The first feed into the crushing system at CSH Gold Project in 2013.
Doubling of CSH capacity from 30,000 tonnes per day to 60,000 tonnes resulted in an increase in production primarily due to successful commissioning of the expansion program.
CSH production again increased during the June quarter to 49,784 ounces, compared to 24,571 ounces in the June quarter of 2014. In the first half of 2015 CSH produced 90,817 ounces, up from 51,689 ounces in the corresponding period of 2014.
The company also reported a 475% increase in copper production at Jiama Copper Gold Polymetallic Project in Tibet from the March quarter of 2014. It said copper production from Jiama went from 771 tonnes in the first three months of 2014 to 4089 tonnes in the same period this year. This was mainly due to the stable power supply in the first quarter of 2015 compared with the power shortage in the first quarter of 2014.
Production again increased during the June quarter with 10.9 million pounds produced, up from 9.6 million in the June quarter of 2014. In the six months to June 30 Jiama produced 19.9 million pounds, up from 11.2 million in 2014.
“We are off to a great start for 2015,” China Gold International’s CEO Bing Liu said. “During the first quarter we increased both gold and copper production without any technological difficulties. This translated into higher revenues and net income despite the 15% decrease in the realized average price of copper per pound and a 7% decrease in the realized average price of gold per ounce.
“Jiama expansion is progressing as anticipated and CSH is fully utilizing its increased capacity. At this stage, we are very confident about achieving our 2015 guidance.
“I am very pleased with the performance of our company and our team. Despite challenging market conditions, we grew revenues, net income and production. We are mindful of our capital and operating expenditures and are well financed to take advantage of any good acquisition opportunities which are becoming more re abundant.”
The company expects production of 226,000 ounces of gold in 2015, a 25% increase on 2014, and expects production of 53 million pounds of copper, a 71% increase on 2014.