TSX:
CGG
HKSE:
2099
last:
1.82 (-0.02)
last:
10.60 (+0.08)
vol:
70,010
vol:
869,200

2012 REPORT EXPANSION FEASIBILITY STUDY

On November 5th, 2012 the Company announced the results of a National Instrument 43-101 compliant Technical Report Expansion Feasibility Study for CSH Project. This report was prepared following the 2011 drilling campaign.and 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.

HIGHLIGHTS

  • 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%

A National Instrument 43-101 compliant Technical Report Expansion Feasibility Study for CSH Project is available here or on SEDAR

RESOURCE ESTIMATE

All CSH Resources by category below pit surface to December 31st, 2011,
within Resource Pit, 2012 Resource Model.
  Cutoff
(g/t)
Measured Indicated Measured+
Indicated
Inferred
MTonnes Au Grade
(g/t)
MTonnes Au Grade
(g/t)
MTonnes Au Grade
(g/t)
Million
Ounces
Au
MTonnes Au Grade
(g/t)
0.25 95.3 0.61 192.7 0.55 288.0 0.57 5.26 155.7 0.46
0.28 90.4 0.63 172.2 0.58 262.6 0.60 5.05 132.8 0.49
0.30 86.9 0.65 160.2 0.60 247.1 0.62 4.91 118.9 0.52
0.35 78.2 0.68 134.5 0.65 212.8 0.66 4.55 91.5 0.57
0.40 69.9 0.72 113.8 0.71 183.7 0.71 4.20 71.1 0.63
0.45 61.7 0.76 97.0 0.75 158.7 0.76 3.86 56.1 0.69
0.50 53.9 0.80 83.0 0.80 136.9 0.80 3.52 44.8 0.74
0.55 47.2 0.84 71.2 0.85 118.4 0.84 3.21 36.1 0.80
0.60 40.7 0.88 61.0 0.89 101.7 0.89 2.90 29.1 0.85
0.65 34.8 0.93 52.2 0.94 87.0 0.93 2.61 23.5 0.90
0.70 29.5 0.97 44.1 0.99 73.6 0.98 2.32 19.1 0.95
0.75 24.9 1.02 37.3 1.03 62.3 1.03 2.06 15.7 1.00

*Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not fully account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Even though current mining is going smoothly at CSH with M&I class mineral resources, there is no certainty that inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

MINERAL RESERVES

CSH Project Statement of NI 43-101 Mineral Reserves Estimate cutoff grade of 0.28 g/t

Class bcm x 1000 t x 1000 Insitu Au g/t Diluted Au g/t
Proven 32,018.0 89,086.0 0.64 0.62
Probable 44,627.0 124,394.0 0.60 0.58
Total 76,645.0 213,480.0 0.61 0.59