Majestic Gold Corp is reviewing operations at its Songjiagou Gold Project in Shandong province in an effort to more fully realize the potential of the mine. The company expects the review process will be completed during the third quarter of 2014, with the implementation of any necessary changes to begin during the fourth quarter.
In December 2013, management began a comprehensive review of its general and administrative expenses to identify and implement opportunities of cost savings. To date, management has implemented cost saving actions and began to realize the savings in January. Management will continue to work to identify and evaluate further cost saving opportunities.
Gold production from Songjiagou for the year ended September 30, 2013, was 19,611 ounces compared to 18,925 ounces produced for the previous year. Tonnes of ore milled was 1,872,396 tonnes, compared to 1,950,987 tonnes milled for the comparative year.
Gold sales revenue for the year ended September 30, 2013, was $25,387,862 from the sale of 16,894 ounces at an average realized gold price of $1503 per ounce compared to revenue of $31,116,445 from the sale of 18,607 ounces at an average realized gold price of $1672 per ounce for the year ended September 30, 2012.
Gross profit was $6,372,024 compared to $11,828,271 for the previous year while cash costs were $1101 per ounce compared to $996. The onsite assay lab was completed in July 2013 while SRK Consulting China completed an NI 43-101 Technical Report in support of the Preliminary Economic Assessment for the project.
Majestic completed the exchange provided for in the agreement with Yantai Dahedong Processing Co and as a result, Dahedong now holds a 25% equity stake in the company’s Chinese subsidiary, Yantai Zhongjia Mining Co.
Currently focused solely in China, Majestic Gold is a Vancouver, BC-based company engaged in commercial gold production at Songjiagou in Yantai, China. The mine is an open pit and underground operation.