CHINA - Water supply secured for CSH mine

A new major water supply has ensured the future expansion of China Gold International Resources’ Chang Shan Hao (CSH) gold mine in China’s Inner Mongolia. The mine was listed as fifth in the top 10 most productive Chinese gold mines for 2010 by the China Gold Association.

The local government has completed construction of a new dam on the Muleng River beside the mine and China Gold International has built two water pumping wells in the dam’s centre along with a 3.3km supply pipeline to the company’s water pumping station.

“This is a significant milestone for potential future expansion of the CSH gold mine," says China Gold International chief executive officer Dr Xin Song. “We are also currently working on increasing the resource at the mine site, and subsequently further increasing the production capacity."

The open pit heap leaching gold mine, which began commercial production in 2008, is about 210kms northwest of the city of Baotou, on the southern edge of the North China gold belt. This belt also hosts the multi-million ounce Oyu Tolgoi gold mine in southern Mongolia.

Production for 2011 is expected to reach 125,000 ounces compared to 2010 production of 111,000 ounces of gold. China Gold International is also evaluating the mine’s new resources after completing a drill program at the mine site this year.

Limited water supply at the mine site had threatened future production increases, with the current processing capacity at 30,000 tonnes per day. This new dam secures at least one million cubic metres of additional water per year. The reservoir capacity will also be increased in 2012 when the company plans to excavate almost one million cubic metres of silt and clay for use in future leach pad construction.

China Gold International Resources is a mineral development company focused on acquisitions, exploration, development, mining and processing of gold and other non-ferrous metals. The company has been designated as the overseas flagship vehicle of China National Gold Group Corporation, the only gold producer in China directly controlled by the State-owned Assets Supervision and Administration Commission of the State Council.

www.chinagoldintl.com