CHINA Gold International Resources expects to complete construction of stage two of the expansion project at Jiama Copper-Polymetallic Project in Tibet Autonomous Region by the end of the year. The expansion will increase daily production capacity from 6000 to 50,000 tonnes.
|The expansion project at China Gold International Resources’ Jiama project in Tibet Autonomous Region.|
The Toronto Stock Exchange listed company, which is also listed on the Main Board of The Stock Exchange of Hong Kong, has completed stage one and is currently commissioning this work with start-up scheduled for December 1. This will increase daily capacity from 6000 tonnes to 28,000 tonnes.
China Gold continues to leverage the technical and operating experience of its controlling shareholder, China National Gold Group Corporation (CNG), to improve operations at Jiama and at its CSH Gold Project in Inner Mongolia. In addition, China Gold continues to focus its efforts on increasing production while minimizing costs at both mines.
It expects to produce 235,000 ounces of gold and 38.6 million pounds of copper during 2016 and is on track to achieve this.
To fulfil its growth strategy, the company is continuously working with CNG and other interested parties to identify potential international mining acquisition opportunities, which are in production or can be readily and quickly brought into production with the possibility of further expansion through continued exploration.
In the June quarter gold production from CSH decreased by 2% to 48,867 ounces from 49,783 ounces in the same period of 2015. The decrease is attributed to lower volumes and grades of ore mined. The cash production cost and total production cost both increased.
During the quarter Jiama copper production increased by 2% to 5014 tonnes from 4923 tonnes with the cash production cost and total production cost of copper decreasing primarily due to a 24% increase in sales volumes of copper.
In the first half of 2016 gold production from CSH decreased by 6% to 85,570 ounces from 90,817 ounces for the first six months of 2015 while copper production from Jiama increased 1% from 9012 tonnes to 9120 tonnes or about 20.1 million pounds.
CEO and executive director Bing Liu said, “I am very pleased with the performance of our company and our team. Despite challenging market conditions, the company is undertaking a further detailed review of its existing projects to reduce costs. Initiatives are being undertaken to continue the company’s steps to streamline operations and will continue to do so.”