CHINA Gold International Resources has had a strong start to the year at Jiama Copper-Gold Polymetallic Mine in Tibet Autonomous Region and at CSH Gold Mine in Inner Mongolia, leaving the company confident of meeting 2017 production guidance.
|A gold bar poured at China Gold International’s CSH Gold Project in Inner Mongolia.|
In the March quarter, China Gold’s mine operating earnings increased 155% to US$19.1 million and copper production by 39% compared with the same period in 2016.
At Jiama, copper production of 5716 tonnes, or approximately 12.6 million pounds, does not include the output of 1866 tonnes from phase II series I commissioning during the first quarter of 2017. Production in the 2016 March quarter was 4106 tonnes, or about 9.05 million pounds.
Gold production from CSH decreased 6% to 34,540 ounces from 36,703 ounces for the same period in 2016. The total production cost of gold for the three months was US$1127 per ounce, compared to US$1034 in the same period in 2016, due to higher depletion and depreciation costs, and the cash production cost was US$741 compared to US$739.
Cash production cost and total production cost of copper per pound decreased from $2.50 to $2.14 and from $2.09 to $1.79 respectively, mainly because of higher ore grades mined and processed.
The net profit/loss after income taxes increased to net profit of US$6.4 million from a net loss of US$3.5 million for the 2016 period.
Jiama copper production in 2017 is expected to be approximately 79 million pounds and CSH gold production is expected to be approximately 193,000 ounces. Consolidated gold production from both mines is expected to be 218,700 ounces.
During the remainder of 2017, the company will continue to leverage the technical and operating experience of controlling shareholder, China National Gold Group Corporation (CNG), to improve operations at its mines, increase production and minimise costs.
To fulfill its growth strategy, the company is continually working with CNG and other interested parties to identify potential international mining opportunities that can be readily and quickly brought into production.
China Gold’s CEO Bing Liu said, “With our sharp focus on delivering consistent results, we continue on target to meet our annual production guidance. We are also planning to speed up the resource development and take advantage of any good acquisition opportunities.”