TSX:
CGG
HKSE:
2099
last:
1.60 (-0.09)
last:
9.55 (+0.02)
vol:
77,367
vol:
205,400

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 Q1 Financial Performance Snapshot

CSH Mine Three months ended March 31,
  2019 2018
Gold sales (US$ million) 37.68 49.66
Realized average price (US$) of gold per ounce 1,307 1,313
Gold produced (ounces) 28,626 36,042
Gold sold (ounces) 28,831 37,832
Total production cost (US$ per ounce) 1,373 1,028
Cash production cost(1) (US$ per ounce) 909 578

(1) Non-IFRS measure. See ‘Non-IFRS measures’ section of this MD&A

  • Gold production at the CSH Mine decreased by 21% to 28,626 ounces for Q1 2019 compared to 36,042 ounces for Q1 2018. The decrease in gold production is attributed to lower volumes of ore mined during the 2019 period, which is in line with the revised mining plan.
  • The total production cost of gold for Q1 2019 increased to US$1,373 per ounce compared to US$1,028 for Q1 2018.
  • The cash production cost of gold for Q1 2019 increased by approximately 57% to US$909, from US$578 per ounce for the same period in 2018, mainly due to an approximately 27% lower grade of gold. 

2019 Q1 Production Update

CSH Mine Three months ended March 31,
  2019 2018
Ore mined and placed on pad (tonnes) 2,877,842 3,015,450
Average ore grade (g/t) 0.45 0.62
Recoverable gold (ounces) 25,574 36,630
Ending ore inventory (ounces) 160,690 208,194
Waste rock mined (tonnes) 9,810,385 12,990,300
  • For Q1 2019, the total amount of ore placed on the leach pad was 2.9 million tonnes, with total contained gold of 25,574 ounces (795 kilograms).
  • The overall accumulative project-to-date gold recovery rate has slightly increased to approximately 54.27% at the end of March 2019 from 54.02% at the end of December 2018.  Of which, gold recovery from the phase I heap is 59.13% and; gold recovery from the Phase II heap is 46.26% at March 31, 2019.

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 Q1 news release

2018 Company Gold Production Highlights

  • Gold production of approximately 145,000 ounces from CSH Mine, representing a 22% decrease compared to 2017.
  • However, the consolidated gold production from both of the Company’s mines (Jiama nad CSH) was approximately 215,000 ounces. This exceeds more than 34% of the previously forecasted production guidance of 160,000 ounces disclosed at the beginning of 2018.  Where,
  • gold production of approximately 70,000 ounces from the Jiama Copper-Gold Polymetallic Mine (“Jiama Mine”), representing a 47.3% increase compared to 2017.

Health, Safety & Environment: 

  • Safety performance: As at September 30, 2018, achieved 187 days zero fatality rate for million-ton production, zero major equipment accident rate, zero major fire and explosion accident rate, and zero major traffic accident rate

Looking Forward:

Guidance Highlights for 2019:

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