Issue link: http://resourceworld.uberflip.com/i/119004
In 2010 China Gold International bought the Jiama polymetallic copper – gold – silver project near Lhasa, Tibet, thus consolidating the efforts of a small group of competing mineral companies and ensuring that the local town would share in the prosperity of an operating mine. Convenient to infrastructure and only 68 km from Tibet's capital, soon the Jiama Mine was producing copper concentrate sweetened with gold and silver. With complex geology, including a central copper porphyry deposit surrounded by skarn and hornfels mineralization, the Jiama Project is located in the Gangdise Copper Metallogenic Belt. Mineralization includes Cu, Mo, Au, Ag, Pb, and Zn, with only copper, gold, and silver worth selling at current prices. Latest resource figures for Jiama polymetallic mine show combined measured and indicated resources at 1.0531 billion tonnes of ore grading 0.44% Cu, 0.21 g/t Au, and 10.97 g/t Ag; in addition, inferred resources are 395.9 million tonnes grading 0.42% Cu, 0.28 g/t Au, and 12.26 g/t Ag, with metal content 1.676 million tonnes Cu, 17 million oz Au, and 73.4 million oz Ag. Combined proved and probable reserves at Jiama are 363.470 million tonnes of ore grading 0.77% Cu, 0.22 g/t Au, and 11.87 g/t Ag, with metal content 2.8077 million tonnes Cu, 80.50 tonnes Au, and 4,315.4 tonnes Ag. Although copper occurs at <1%, there is enough to have produced 25,350,000 pounds of copper in 2012, its second year of mine life. Feasibility studies, optimization of design, further infill drilling, and construction aim at increasing production rapidly. From Jiama, copper concentrate is sold to a large zinc-mining company with its own smelter in an adjoining province of China, whereas gold doré bars from CSH are refined internally by CNG. China Gold International offers successful gold and copper mining as well as promised expansion. It is also exploring near its current mines and worldwide for more profitable projects, as well as looking out for merger and acquisition opportunities. n APRIL 2013 Focused on Developing the Harper Creek Copper-Gold-Silver Deposit in British Columbia Detailed Feasibility Study results March 2012 • Total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu (0.14% Cu cut-off ), 0.029g/t Au and 1.14g/t Ag • Estimated production over life-of-mine: 3.63 billion lbs Cu, 372,000 oz Au and 14M oz Ag contained in concentrate. • Estimated after tax NPV8 $465.3 million, IRR 17.0%; based on metal prices of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and 0.86:1 US/CDN exchange rate • Mine life 28 years at a milling rate of 70,000 tonnes/day • Stripping ratio 0.81:1 life-of-mine • Capital costs are estimated at C$838.95 million in Q4 2011 dollars, including contingency • Adjacent rail, road, power and town infrastructure • Project is 100% owned by Yellowhead Mining* • Senior management has extensive international experience with large scale open pit copper projects • Excellent potential to significantly expand the resource * Subject to 3% NSR royalty capped at $2,500k, adjusted for inflation, plus a further 2.5% NSR royalty on approximately 1.5 million tonnes of ore which is expected to be mined beginning in year 16 of the mine plan. Ronald Handford, Executive Vice President, Corporate Development T: 604.681.1709 info@yellowheadmining.com www.yellowheadmining.com TSX: YMI OTCQX: YHMGF Resource World - one third page square: 4.875"W x 4.7"H Tech: sharon@xy3design.com 604-925-9232 www.resourceworld.com 41