TSX:
CGG
HKSE:
2099
last:
1.05 (+0.00)
last:
6.28 (+0.08)
vol:
7,633
vol:
256,400

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 Q2 Financial Performance Snapshot

CSH Mine   Three months ended June 30,  Six months ended June 30
  2019 2018 2019 2018
Gold sales (US$ million) 52.17 45.03 89.85 94.69
Realized average price (US$) of gold per ounce 1,303 1,319 1,305 1,316
Gold produced (ounces) 39,875 33,880 68,502 69,922
Gold sold (ounces) 40,028 34,138 68,859 71,970
Total production cost (US$ per ounce) 1,329 1,097 1,347 1,061
Cash production cost(1) (US$ per ounce) 805 806 849 686

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

  • Gold production at the CSH Mine increased by 18% to 39,875 ounces for Q2 2019 compared to 33,880 ounces for Q2 2018. The increase in gold production is attributed to higher volumes of ore mined and improved recovery rates during the second quarter of 2019 as compared to 2018.
  • The total production cost of gold for Q2 2019 increased to US$1,329 per ounce compared to US$1,097 for Q2 2018.  The increase in production cost is attributed to the difference between recoverable gold placed on pad which increased by approximately 112% and gold production which increased by 18% for Q2 2019.  As the CSH Mine uses a heap leaching (leach pad) process, there are periods in which there is a timing difference in the volume of ore mined and placed on pad compared to volume of gold production. On average, the heap leaching process will take several years from when the ore is first mined and placed on pad until the point of gold production.
  • Higher volumes of gold production also contributed to approximately a 33% increase in amortization of mine development costs. The cash production cost of gold for Q2 2019 remained consistent compared with the same period in 2018.

2019 Q2 Production Update

CSH Mine  Three months ended June 30, Six months ended June 30,
  2019 2018 2019 2018
Ore mined and placed on pad (tonnes) 4,014,071 2,083,559 6,891,913 5,099,009
Average ore grade (g/t) 0.55 0.54 0.51 0.59
Recoverable gold (ounces) 44,211 20,812 69,785 57,442
Ending ore inventory (ounces) 170,466 195,936 170,466 195,936
Waste rock mined (tonnes) 19,647,091 15,439,504 29,457,476 28,428,804
  • For the three months ended June 30, 2019, the total amount of ore placed on the leach pad was 4.0 million tonnes, with total contained gold of 44,211 ounces (1,375 kilograms). The overall accumulative project-to-date gold recovery rate has slightly decreased to approximately 54.19% at the end of June 2019 from 54.27% at the end of March 2019. Of which, gold recovery from the Phase I heap is 59.71% and; gold recovery from the Phase II heap is 46.30% at June 30, 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 Interim Report

2019 Q2 Company Gold Production Highlights

  • Gold production from the CSH Mine increased by 18% to 39,875 ounces from 33,880 ounces for the same period in 2018.
  • The Company’s total production of Q2 was 55,503 ounces of gold. Total production of gold for the first half year was 99,527 ounces.

LOOKING FORWARD:

Guidance Highlights for 2019:

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

Exploration

  • During the second quarter of 2019, CSH conducted research on geological prospecting results of recent years. By bringing in advanced tests and comprehensive analysis, geophysical survey on targeted area, the Company is constructing a 3D quantitative geological model to assist resource evaluation.
  • The Company is also conducting exploration around the CSH Mine to identify additional resources that may further extend the mine life. The Company plans to release a new resource report by the end of 2019.
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