CHINA Gold International Resources expects to increase total gold production from its Chinese operations to about 235,000 ounces in 2016 while copper production is expected to be steady at about 38.6 million pounds. Most of the increase in gold production will be from the Chang Shan Hao (CSH) Gold Project in Inner Mongolia.
Consolidated gold production at CSH and Jiama during 2015 was 228,508 ounces, which was 26% more than the 180,674 ounces produced in 2014. The 2015 total also surpassed the company’s guidance of 226,000 ounces. CSH gold production increased 25% to 204,471 ounces in 2015 and the mine is expected to produce about 219,000 ounces in 2016.
Construction work on the processing plant at Jiama Copper-Gold Polymetallic Project in central Tibet.
Gold production from the Jiama Copper-Gold Polymetallic Project in Tibet Autonomous Region increased by 39% from 17,231 ounces in 2014 to 24,037 ounces in 2015. Copper production increased by 24% to 38,104,615 pounds in 2015. It was the fifth successive year of increasing production at Jiama and the company exceeded its 2015 expected copper production guidance of 37.5 million pounds.
China Gold expects 2016 production from Jiama to be approximately 38.6 million pounds of copper and 16,000 ounces of gold. The management considers this level of production to be optimal given the current volatile copper price environment. The mine has sufficient capacity to increase production in a timely manner when copper prices recover.
The company’s CEO Bing Liu said, “The continued growth in our production is in line with our objective to deliver profitability to our shareholders and supporters. We have made significant advancements this year in technological innovation and cost control and are aiming to prosper despite challenging market conditions.”
China Gold announced in late 2015 that completion of the commissioning of stage one of the phase two expansion at Jiama had been deferred until the second half of 2016. It was originally scheduled to be completed by the fourth quarter of 2015 but was deferred due to defects detected during the loaded test run. Stage two construction is under way and is expected to be completed by the end of 2016.
The phase two expansion is aimed at increasing daily processing capacity from 6000 tonnes to 50,000 tonnes, resulting in annual production of about 176 million pounds of copper. Jiama is one of the largest copper gold polymetallic mines in China and has an expected mine life of 35 years. It is within the Gangdise Copper Metallogeny Belt in central Tibet.