VANCOUVER,
Feb. 27, 2014 /PRNewswire/ - China
Gold International Resources Co. Ltd. (TSX:CGG) (HKEx: 2099)
("China Gold International Resources" or the "Company") is pleased
to provide preliminary guidance on 2013 operating, production and
exploration progress on both of its mines and share its goals for
2014.
2013 Production, Operating and Exploration
Highlights
- Gold production from the Chang Shan Hao Gold Mine ("CSH Mine")
mine slightly decreased by 5.8% from 139,443 ounces in 2012 to
131,418 ounces in 2013. This decline is partially due to lower
grades of ore mined and longer recovery periods caused by the
growing height of the leaching heap.
- Cumulative gold recovery at CSH has been steadily increasing
over the last few years: from 39% in 2010, to 46% in 2011, to 53%
in 2012 and to 54% in 2013.
- The company has successfully completed a new 30,000 tonne per
day ("tpd") stand-alone crushing, heap leaching and ADR
(Absorption, Desorption and Refining) plant in addition to the
existing 30,000 tpd facility. A new 80 kilometer long
government-built 110 Kilovolt ("KV") power line was completed by
end of November 2013. CSH Mine's
processing capacity increased from 30,000 tpd to 60,000 tpd.
- Copper production from the Jiama Copper-Gold Polymetallic Mine
("Jiama Mine" or "Jiama") mine increased by 10% from 25,820,417
pounds in 2012 to 28,323,626 pounds in 2013. This is the third full
year of increasing production for the Jiama mine.
- On December 20, 2013, in
accordance with the schedule, the Phase II expansion NI 43-101
compliant feasibility study for Jiama has been successfully
completed by the Changchun Gold Design Institute in conjunction
with independent consulting firm Mining One and the Company's
management. The results showed measured and indicated copper
mineral resources increased to 1,486 million tonnes averaging 0.41%
Cu from 1,053 million tonnes averaging 0.44% Cu; contained copper
metal increased to 6.14 million tonnes from 4.64 million tonnes.
The proved and probable copper mineral reserves increased to 441
million tonnes at a grade of 0.61% Cu from 363 million tonnes at
0.77% Cu. The feasibility study estimated that the project has
an NPV (9%) of $1.3 billion and is
expected to generate a nominal after tax cash flow of $5.8 billion.
- By the end of December 2013, the
Jiama Mine completed its 2013 drilling program for the total of
3,434 meters in the existing Tongqianshan open pit. Drilling
results will be available in the first half of 2014. The major
goals are to further define the main high grade ore body in the
current open pit mining area and also to better understand the
geological structural on controlling metallogenic regularity. Total
exploration expenditures were approximately US$ 4.32 million.
Mr. Bing Liu, CEO of the Company, commented,
"During 2013, we have successfully upheld our promises to the
shareholders about our expansion plans on both of our mines. The
Company reached monumental milestones by completing the expansion
construction at CSH and finishing Jiama's feasibility study. Last
year was difficult for most metals producers as metal prices and
share values declined. We consider metal prices fluctuations to be
a part of normal business cycle.
We are focusing on growth which incorporates a
very stringent company-wide cost reduction and management policy
and extremely selective acquisition strategy. This strategy worked
well for us in 2013 and helped us avoid overpaying for assets or
potential write-offs. Now, we expect to see many more
opportunities in our sector and we are prepared to act on those
opportunities if we see that they offer great value to our
shareholders".
2014 Production and Operating
Outlook:
Organic growth, cost management and international expansion
continue to be the Company's main goals for 2014. The Company
plans to continue to work very closely with China National Gold, the largest gold producer
in China and a major shareholder
of the Company. We serve as an international expansion vehicle for
China National Gold and one of our
mandates from them is to acquire and further develop accretive,
top-quality assets. We continue to leverage their financial
capabilities and technical expertise to facilitate financing of
those acquisitions and to develop them into profitable
producers.
CSH Developments and Outlook:
The 2014 gold production for the Company's CSH Mine is expected to
be approximately 200,000 ounces.
At CSH, the ramp-up of production on the newly
build 30,000 tpd crusher and ADR plant has commenced. Test runs are
being performed. The Company expects the first gold output from the
new 30,000 tpd facility in second quarter of 2014.
Gold production is expected to nearly double
from its 2013 level of 131,418 ounces to about 260,000 ounces per
annum by 2015.
The Company continues to conduct surface
reconnaissance and exploration for further expansion opportunities
around the CSH Mine.
Jiama Developments and
Outlook:
The 2014 copper production for the Company was previously expected
to be about 50 million pounds.
At the present time, the Company is not able to
provide definitive 2014 production guidance for Jiama Mine as the
mine is dealing with reduced power supply that has affected the
central Tibet region during the winter months. The Tibet government
and the Central Government of China are currently progressing a
power supply development plan. Current locally-generated power
supply available to the Company is subject to seasonal
interruptions during the winter months due to the harsh
climate.
The Company has implemented counteractive
measures to mitigate the effect of power shortages, such as
accelerating previously scheduled equipment maintenance and time
off for employees during this time. Production has slowed as a
result of the power supply issues, and the Jiama Mine temporarily
suspended operations around the Chinese holiday period in
January 2014. Production has resumed
with the assistance of the local government and hydro companies,
but at less than the planned capacity. The Company anticipates
that the Jiama Mine will be able to resume full production in April
or May 2014 as seasonal power supply
comes back online.
Once the full power supply is restored, the
Company expects to be able to increase productivity and efficiency
in order to generate additional production to meet its previously
expected and aforementioned 2014 guidance of approximately 50
million pounds of copper. However, any increase in
productivity will depend on adequate power supply and the
successful implementation of efficiency and mine planning being
undertaken during the slowdown. Accordingly, the Company will
need to confirm its 2014 guidance for the Jiama Mine in
mid-2014.
The construction of Phase II expansion is not
expected to be significantly affected by the power shortage and is
expected to be completed on time.
Jiama's production capacity will grow in 2
stages. At the completion of stage one, scheduled for the second
half of 2014, the new mill's capacity is expected to grow from
6,000 tpd to 28,000 tpd of ore. Stage two construction of an
additional 22,000 tpd capacity is expected to be completed by the
second half of 2015. This expansion will grow Jiama's processing
capacity nearly 8 times from 6,000 tpd in 2013 to 50,000 tpd in
2015. By 2016, copper production is expected to reach
176,000,000 pounds.
Final Year-End 2013 Results and Conference
Call
China Gold International expects to report its Year-End 2013
Results on March 26, 2014 and the
results will be available on the company's website and SEDAR. In
connection with the release, management will hold a conference call
to discuss year-end results and performance. The Company will
provide further details about precise timing of the release date
and the call at a later date.
About China Gold International
Resources
China Gold International Resources Corp. Ltd. is
based in Vancouver, BC,
Canada and operates both
profitable and growing mines, the CSH Gold Mine in Inner Mongolia,
and the Jiama Copper-Gold Polymetallic Mine in Tibet Autonomous
Region of the People's Republic of
China. The Company's objective is to continue to build
shareholder value by growing production at its current mining
operations, expanding its resource base, and aggressively acquiring
and developing new projects internationally. The Company is listed
on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The
Stock Exchange of Hong Kong
Limited (HKEx: 2099).
Cautionary Note about Forward-Looking
Statements
Certain information regarding China Gold
International Resources contained herein may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Although China
Gold International Resources believes that the expectations
reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been
correct. China Gold International Resources cautions that actual
performance will be affected by a number of factors, most of which
are beyond its control, and that future events and results may vary
substantially from what China Gold International Resources
currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include
market prices, exploitation and exploration results, continued
availability of capital and financing and general economic, market
or business conditions. The forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
The information contained herein is stated as of the current date
and subject to change after that date.
SOURCE China Gold International Resources Corp. Ltd.