TSX:
CGG
HKSE:
2099
last:
1.09 (+0.00)
last:
6.33 (+0.08)
vol:
130,270
vol:
404,000

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:

2019 Q3 Financial Performance Snapshot

CSH Mine Three months ended September 30, Nine months ended September 30,
  2019 2018 2019 2018
Gold sales (US$ million) 62.27 39.96 152.22 134.65
Realized average price (US$) of gold per ounce 1,509 1,197 1,381 1,278
Gold produced (ounces) 43,829 33,468 112,331 103,390
Gold sold (ounces) 41,330 33,374 110,189 105,334
Total production cost (US$ per ounce) 1,289 1,238 1,325 1,117
Cash production cost(1) (US$ per ounce) 820 805 838 724
(1) Non-IFRS measure. See ‘Non-IFRS measures’ section of this MD&A    
  • Gold production at the CSH Mine increased by 31% to 43,829 ounces for the three months ended September 30, 2019 compared to 33,468 ounces for the three months ended September 30, 2018. The increase in gold production is attributed to higher volumes and higher grade of ore mined during the third quarter of 2019 as compared to 2018.
  • The total production cost of gold for the three months ended September 30, 2019 increased to US$1,289 per ounce compared to US$1,238 for the three month 2018 period.  The cash production cost of gold for the three months ended September 30, 2019 slightly increased compared with the same period in 2018.

2019 Q3 Production Update

CSH Mine Three months ended September 30, Nine months ended September 30,
  2019 2018 2019 2018
Ore mined and placed on pad (tonnes) 4,031,723 1,959,973 10,923,636 7,058,982
Average ore grade (g/t) 0.58 0.43 0.54 0.55
Recoverable gold (ounces) 44,203 15,611 113,988 73,053
Ending ore inventory (ounces) 171,938 178,553 171,938 178,553
Waste rock removed (tonnes) 18,534,202 19,910,536 47,994,678 48,340,340
  • For the three months ended September 30, 2019, the total amount of ore placed on the leach pad was 4.0 million tonnes, with total contained gold of 44,203 ounces (1,375 kilograms). The overall accumulative project-to-date gold recovery rate has slightly increased to approximately 54.28% at the end of September 2019 from 54.19% at the end of June 2019. Of which, gold recovery from the phase I heap is 59.77% and; gold recovery from the Phase II heap is 47.41% at September 30, 2019.
  • In the second half of 2017, there were a series of wall failures on one side of the north-east pit at the CSH Mine which led to short term interruptions of mining activities.  The Company curtailed production in certain areas of the pit while it conducted studies to address the slope stability issues and remediation plans for the long term mine plan, which included optimization studies for pit limit, haul road design and mining production schedule for the new pit slope angle. 
  • Based on the finalized studies, the Company has adopted an updated pit design for the north-east pit in accordance with the pit limit optimization study carried out by Changchun Gold Design Institute based on the amended ultimate pit limit slopes.  The new pit design is conducted based on the Mineral Reserves estimate for the CSH Mine reported as of December 31, 2018.  Accordingly, the life of mine updated production schedule is seven years.

Mineral Resource Update

CSH Mine Resources by category, Northeast and Southwest pits combined at December 31, 2018 under NI 43-101:

      Metal
Type Quantity Mt Au g/t Au t Au Moz
Measured 12.34 0.62 7.60 0.24
Indicated 124.12 0.62 76.63 2.46
 
M+I 136.46 0.62 84.24 2.71
Inferred 80.36 0.52 41.51 1.33

Mineral Reserves Update

CSH Mine Reserves by category, Northeast and Southwest pits combined at December 31, 2018 under NI 43-101:

      Metal
Type Quantity Mt Au g/t Au t Au Moz
Proven 10.59 0.63 6.72 0.22
Probable 66.49 0.65 43.23 1.39
 
Total 77.08 0.65 49.96 1.61

Click here for 2019 Q3 news release

LOOKING FORWARD:

Exploration

CSH conducted a research project based on the geological exploration results completed in the recent years, with regional geological mapping of 30 km2, geological investigations of 129 km, aeromagnetic survey of 78 km2, as well as 1,200 samples / 6 km of geochemical survey, 11,307 +/-m of cores from 42 drill holes, detailed logging of 9,373+/-m of cores from 28 drill holes and infrared spectral alteration analysis

Guidance Highlights for 2019:

The Company anticipates production of approximately 210,000 ounces of gold (CSH&Jiama Combined) in 2019.

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