The expansion program at China Gold International Resources’ Chang Shan Hao (CSH) Gold Project in Inner Mongolia is progressing rapidly and in line with the expected timeline. The company has reached a monumental milestone in the expansion construction process by completing its new additional 30,000 tonnes/day crushing system, which is currently being tested.
A ribbon cutting ceremony was held on August 1 before a test run of the new standalone crushing facility. As set out in the mine expansion feasibility study, CSH’s daily processing capacity is expected to double from 30,000 to 60,000 tonnes while gold production is expected to nearly double from the 2012 annual level of 139,443 ounces to about 260,000 ounces by 2015.
Construction of the heap leaching system is progressing according to schedule. The leach pad liner bedding is complete, 50% of the geomembrane is complete and 25% of the overliner material is complete and the system is now ready for newly crushed ore stacking. Construction of the new ADR (absorption, desorption and refining) plant system is completed and the company expects first gold pour at the new plant in the fourth quarter of 2013.
According to the feasibility study, estimated capital expenditure for the expansion was approximately US$213 million, and the after-tax NPV of the project is US$642 million at a 9% discount rate.
China Gold International Resources’ CEO and executive director Xin Song attended the commissioning ceremony and reviewed the progress of the rest of the expansion. He says, “We are very pleased with rapid execution of our expansion plans on both of our mines. We are proud to assure shareholders that we are upholding our commitment to them on the expansion construction timeline.
“CSH mine has made tremendous progress to complete the crushing facility ahead of the schedule by utilizing the talents of our people and the strengths of our major shareholder China National Gold. I would like to congratulate all members of our team at China Gold International Resources on this progress. I would also like to thank our board and shareholders, who continue to believe in and support us in our efforts.”
The company expects to full complete the expansion in the fourth quarter and expects annual production of 145,000 ounces this year. The project is expected to produce at about 80% of the full 60,000 tonne daily capacity in 2014 due to the production ramp-up period required after construction is completed. It is expected to produce at full daily capacity by 2015.
China Gold International Resources Corp is based in Vancouver, BC, Canada and operates profitable and growing mines - CSH Gold Mine in Inner Mongolia and Jiama Copper-Gold Polymetallic Mine in Tibet Autonomous Region of China.
The company’s objective is to continue to build shareholder value by growing production at its current operations, expanding its resource base, and aggressively acquiring and developing new projects internationally.