TSX:
CGG
HKSE:
2099
last:
8.09 (-0.03)
last:
46.45 (+0.08)
vol:
5,951
vol:
2,306,226

CSH Gold Mine

The CSH gold mine is one of China's largest open pit gold mines.

Project Overview

  • A conventional open-pit, heap-leach, gold-mining operation
  • Mining a large, bulk-tonnage, low-grade gold deposit
  • Located in Inner Mongolia of China, approximately 210km northwest of the city of Baotou
  • Principal product: Gold dore bars with silver as a by-product
  • Well-established basic infrastructure with excellent access to road and sufficient supplies of power, water and local labor force

Gold Production

CSH&Jiama Combined

 

Recent Updates:

2023 Q1 Financial Performance Snapshot

Table 1
(Click to enlarge)

  • Gold production at the CSH Mine decreased by 5% to 35,291 ounces for the three months ended March 31, 2023 compared to 37,276 ounces for the same period in 2022. The total production cost of gold for the three months ended March 31, 2023 decreased by 13% to US$1,339 per ounce compared to US$1,537 for the same period in 2022. The cash production cost of gold for the three months ended March 31, 2022 decreased by 26% to US$712 per ounce from US$961 for the same period in 2022. The decrease in both total production cost and cash production cost is mainly due to lower stripping ratio in 2023.

2023 Q1 Production Update

Table 2
(Click to enlarge)

  • For the three months ended March 31, 2023, the total amount of ore placed on the leach pad was 4.8 million tonnes, with total contained gold of 56,379 ounces (1,754 kilograms). The overall accumulative project-to-date gold recovery rate has remained at approximately 54.95% at the end of March 31, 2023 from 55.42% at the end of December, 2022. Of which, gold recovery from the phase I and phase II heap leach pads were 59.77% and 51.81% at March 31, 2023, respectively.

Mineral Resource Update

CSH Mine Mineral Resources by category, at December 31, 2022 under NI 43-101 are listed below:

Table 3
(Click to enlarge)

Note:

Mineral Resources are reported in relation to a conceptual open-pit mining and underground block caving mining. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Raw assays have been capped. Mineral Resources include Mineral Reserves.

Mineral Resources are reported at a cut-off grade of 0.28 g/t Au for open-pit mining, based on the following parameters; the heap leaching & metallurgical recovery of 60% and gold bullion market price of USD 1,980 per ounce. Additional Mineral Resources are reported at a cut-off grade of 0.30 g/t Au for underground block caving mining, based on the following parameters: the heap leaching & metallurgical recovery of 60% and gold bullion market price of USD 1,980 per ounce. USD 1.0000=RMB 6.3457 dated in April 2022, and one troy ounce is equal to 31.1035 grams.

Resource Estimate by CGME Consulting Limited on August 19, 2022 and updated by Gerald Guo, P.Eng., a qualified person as defined by NI 43-101.

Mineral Reserves Update

CSH Mine Mineral Reserves by category at December 31, 2022 under NI 43-101 are summarized below:

Table 4
(Click to enlarge)

Click here for 2023 Q1 news release

LOOKING FORWARD:

Exploration

An exploration report on zones along boundary and at depth was reviewed by the Evaluation Centre for Mineral Resources and Mineral Reserves of the Ministry of Natural Resources (PRC) in November 2021 and registered in the Ministry of Natural Resources (PRC) in January 2022. The data was submitted to the Geology Archives Centre for Inner Mongolia Autonomous Region in May 2022, obtaining the Certificate of Submission, signifying an end of this stage of exploration and providing a basis for development studies of mineral resources at depth. An updated National Instrument 43-101 (‘NI 43-101’) Technical Report was disclosed on August 19, 2022. Compilation of the verification report on mineral resources and mineral reserves is underway based on the Chinese Code. A renewed Exploration License was approved by the local natural resources authority. The documents employed to determine the mining area at depth were submitted to the Natural Resources Bureau of Bayannaoer City, approved by the related Department and awaiting approval of the bureau prior to submission to the Natural Resources Bureau, Inner Mongolia Autonomous Region.

Guidance Highlights for 2023:

  • The anticipated gold production in 2023 will be between 241,130 ounces (7.5 tonnes) and 244,345 ounces (7.6 tonnes).
  • To fulfill its growth strategy, the Company continues to work with China National Gold Group Co., Ltd. (“CNG”) and other interested parties to identify potential international mining acquisition opportunities.
  • The Company has been taking effective measures to prevent and control any significant impact on its operations from the COVID-19 pandemic. Both of the Company’s mines have been able to operate and sell products during the year ended December 31, 2022. The Company continues to closely monitor the health of its employees and supply chains to be able to respond to any potential disruptions, should any arise.

 

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