Issue link: http://resourceworld.uberflip.com/i/229125
China Gold International's expansion plans advancing by Jennifer S. Getsinger, PhD, PGeo China Gold International Resources Corp. Ltd. [CGG-TSX; 2099-HKEX] reports that it is on track with its expansion plans. Its two operating mines, in Mongolia and Tibet, are forging ahead with profitable production as well as construction of new facilities for increasing output. In addition to its major (39%) shareholder, China National Gold Group (CNG), the largest gold producer in China, China Gold International is supported by several significant investment funds around the world. Its top 10 shareholders include the Van Eck Associates Corp., Norges Bank (Norway), and the Canada Pension Plan. Thus it can afford to re-invest in research, exploration, and development while it continues to generate income with gold and copper production. The Chang Shan Hao (CSH) Gold Mine in Inner Mongolia, a low-grade, bulk-tonnage gold mine that produces gold doré bars, is poised to increase its gold ore capacity as it brings into operation the newly completed 30,000 tpd crushing facility, heap leach pad, and processing plant. With buildings and equipment in place, CSH only awaits the completion of an 80 km, 110 KV power line (coal-generated electricity) currently being built by the government of China; it is expected to be finished by the end of 2013. China Gold International expects additional value by accelerating the mine life to 11 years rather than 16 years as previously planned, giving higher confidence in assumptions used to predict projected prices and costs and therefore revenue. On the other hand, CGG is committed to continuing exploration and acquisition for future mining, according to an interview with Jerry Xie, (Executive VP and Corporate Secretary), and Elena Kazimirova (IR Manager and Financial Analyst) at China Gold's Vancouver office. Latest resource figures from China Gold International for the CSH Gold Mine remain the same as reported earlier in 2013. Combined measured and indicated resources stand at 262.6 million tonnes grading 0.60 g/t gold with 5.066 million oz gold. In addition, inferred resources are 132.8 million tonnes grading 0.49 g/t gold with 2.092 million oz gold. Using a cut-off grade of 0.28 g/t gold, combined proved and probable reserves are 213.5 million tonnes grading 0.59 g/t gold with 4.083 million oz gold. Production of gold at CSH for the third quarter of 2013 was 35,536 troy oz; 2013 year total is expected to be 145,000 oz of gold and by 2016 the company is expecting to reach its full production potential of 260,000 oz of gold totals are not yet available; the 2012 year total was 139,443 troy oz gold. Even though the price of gold has been somewhat lower in 2013, the cost of production is still well below it, ensuring continuing profitability. Expansion at the Jiama Polymetallic copper-gold mine in Tibet is planned in several stages. In first half of 2014, capacity is to increase to 20,000 tpd, followed by an increase to 40,000 tpd in 2015, up from current capacity of 6,000 tpd. Construction is under way on a new crushing system, flotation plant, tailings 40 www.resourceworld.com A gold pour at the Chang Shan Hao (CSH) Gold Mine in Inner Mongolia, a low-grade, bulk-tonnage gold mine. Photo courtesy China Gold International Resources Corp. Ltd. management facilities, haulage levels and shafts, and installation of mill equipment, among other projects. With four open pits and two underground mines, Jiama is a huge operation. China Gold International takes pride in the good they are doing for the local Tibetans, employing workers from as many households as possible, building a school, cleaning up the potable water, improving the health and welfare of the community. Latest resource figures for Jiama Polymetallic Mine remain the same as reported earlier in 2013. They show combined measured/ indicated resources at 1.0531 billion tonnes of ore grading 0.44% copper, 0.21 g/t gold, and 10.97 g/t silver. Inferred resources are 395.9 million tonnes grading 0.42% copper, 0.28 g/t gold, and 12.26 g/t silver, with metal content 1.676 million tonnes copper, 17 million oz gold, and 73.4 million oz silver. Combined proved/probable reserves at Jiama are 363.470 million tonnes of ore grading 0.77% copper, 0.22 g/t gold, and 11.87 g/t silver, with metal content 2.8077 million tonnes copper, 80.50 tonnes gold, and 4,315.4 tonnes silver. Production at Jiama in Q3 2013 was 8,398,059 pounds copper, comparing favourably to the 2012 yearly total of almost 26 million pounds. In 2013 the company is expecting to produce 27 million pounds copper and to ramp up to its full production capacity of 176 million pounds in 2016. The company is actively looking for potential acquisition targets. It is focused on finding sizable gold or copper projects that have well defined resources and reserves, in advanced stages of development and in safe and politically stable jurisdictions. n DECEMBER/JANUARY 2014