China Gold International to Increase Gold Production by 95% by 2014; Shares Up 1.5% Mid-Morning

By Staff,

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China Gold International Resources Corp. Ltd. (CGG.TO) today announced the results of a National Instrument 43-101 compliant Technical Report Expansion Feasibility Study for the Chang Shan Hao ( CSH ) Gold Project, located in Inner Mongolia Autonomous Region, People's Republic of China. The Expansion Feasibility Study (EFS) supports a 60,000 tonne per day (tpd) expansion plan, under which the open pit reserves at the CSH project stand at over 213 million tonnes of ore containing about 4.08 million ounces of gold.


Gold production to increase by ~95% in 2014 to 260,000 ounces per annum from the current +133,000 ounces per annum;

Open pit reserves: 213 million tonnes averaging 0.59 g/t gold totalling 4.08 million ounces of gold at 0.28 g/t cutoff gold grade;

Measured and Indicated Resources: 262 million tonnes, averaging 0.60 g/t gold totalling 5.05 million ounces of gold at 0.28 g/t cutoff gold grade;

Ore production to increase from 30,000 tpd to 60,000 tpd by August 2013 (~20 million tonnes per annum thereafter;

Life Of Mine (LOM): 11 years;

Estimated LOM capital expenditure: US$213 million;

Operating cost: US$9.83/tonne ore; or LOM US$713/oz of gold;

Undiscounted total LOM cash flow: US$1,253 million;

After-Tax Net Present Value ( NPV ): $642 million at discount rate of 9%;

Internal Rate of Return ( IRR ) on expansion capital: 30.5%

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: CSH , IRR , NPV

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