VANCOUVER, April 30,
2014 /PRNewswire/ - China Gold International Resources Co.
Ltd. (TSX:CGG; HKEx: 2099) ("China Gold International Resources" or
the "Company") provides an update on first quarter of 2014 ("Q1" or
"Q1 2014") production and operations at its Jiama Copper-Gold
Polymetallic Mine in Tibet Autonomous Region of the People's Republic of China ("Jiama Mine",
or "Jiama").
Power Supply at Jiama:
As previously announced the Company's Jiama Mine
experienced reduced power supply during Q1 2014.
Consequently, Jiama Mine's copper and other metals output during Q1
2014 was severely reduced. Jiama's 6,000 tpd Phase I
processing plant was closed for most of Q1. The stripping work for
Phase II expansion has not been affected. The Company mitigated the
effect of those disruptions by scheduling equipment maintenance and
time off for employees during that time.
On March 31, 2014,
with the assistance from the local government, local power supplier
in the Tibet Region and through the use of locally generated
thermal power, adequate power supply has been re-established.
Subsequently, production reached full 6,000 tpd capacity level of
Phase I in the month of April 2014.
The Company was able to achieve record copper production
levels in April 2014.
The Company expects that its power costs will be
higher than previously paid until a permanent power supply solution
is established. Further negotiations are on-going with
the local government and local power provider to ensure
reliability, availability and acceptable price of the electricity
supply in the medium and long-term.
Q1 2014 and Full Year 2014 Production and
Operating Outlook for Jiama:
As a result of the power shortages, the Company
anticipates reporting significant decline of production, revenues
and net profit at the Jiama Mine during the first quarter of
2014. The Company will announce its first quarter 2014
results on May 15, 2014.
Local government of the Tibet Autonomous Region
and the Central Government of China are currently progressing a power supply
development plan including new hydro power station development plan
to solve the problem of seasonal power shortage in the Tibet
Region.
At this time, 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. Once the Company
is satisfied with the medium and long-term arrangements for power
supply, the Company expects to launch operations of stage one of
its Phase II expansion for the Jiama Mine. The Company
expects that its ongoing initiatives to increase production,
productivity and efficiency at the Jiama Mine will enable it to
meet its previously expected 2014 production guidance of
approximately 50 million pounds of copper. However, due to
uncertain nature of those initiatives, the Company will need to
confirm its 2014 guidance for the Jiama Mine in mid-2014.
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.
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.