China Gold International Resources Co. Ltd. Updates CSH Production Schedule

2019-07-29 / @nasdaq

VANCOUVER, British Columbia, July 29, 2019 (GLOBE NEWSWIRE) -- China Gold International Resources Co. Ltd. (TSX:CGG; HKEx: 2099) (“China Gold International Resources” or the “Company”) is pleased to announce an updated mine plan and life of mine production schedule for its Chang Shan Hao Gold Project (“CSH Mine”) located in Inner Mongolia, People's Republic of China.

Background

As previously reported, 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 that led to short term interruptions of mining activities. For safety reasons 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 for the CSH Mine.

The Company engaged teams at the State Key Laboratory for GeoMechanics and Deep Underground Engineering (China University of Mining and Technology) and the Changchun Gold Design Institute to complete studies on the slope stability of the north-east pit and the updated mine plan for the new pit slopes, including optimization studies for pit limit, haul road design and mining production schedule for the new pit slope angle.

The Company has finalized and adopted these studies into the ongoing mining operations at the CSH Mine. Due to the fact that the CSH Mine employed a phase mining approach, and the 2017 pit wall failures occurred at the transition wall rather than the final wall, it is expected that the ultimate pit limit based on the changed pit slope angle will provide a sustainable mining production of the north-east pit.

Slope Stability Study

Based on a slope stability study conducted by the State Key Laboratory for GeoMechanics and Deep Underground Engineering (China University of Mining and Technology), the Company has adopted the new recommended final pit slopes of the north-east pit of 36.5 degrees (from 42 degrees) for the south wall and 38 degrees (from 44 degrees) for the north wall, respectively, as detailed in the Figure below.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/20b627a6-002f-4e6c-bafe-24307bdb7987

Pit Design

The Company has adopted an updated pit design for 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, as shown in the Figure below.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b51028f2-c1fc-4a07-a098-d28d5d56094b

Production Schedule

The new pit design is conducted based on the Mineral Reserves estimate for the CSH Mine reported as of December 31, 2018 in the Company’s Management Discussion and Analysis for the year ended December 31, 2018.

In accordance with the updated design of north-east pit, the life of mine updated production schedule is seven years, as listed in the Table below.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a188ab6c-4410-4901-be20-4a4625d05a78

Note: The figures in 2019 include the southwest pit of the CSH Mine.

The Company continues to assess underground development plans for the mineralization extending below and around the ultimate pit limit at the CSH Mine. The Company is also conducting exploration around the CSH Mine to identify additional resources that may further extend the mine life.

Qualified Person

Disclosure of scientific or technical information in this production schedule update was approved by Mr. Zhongxin Guo, P.Eng., the Company’s Chief Engineer and a Qualified Person (“QP”) for the purposes of NI 43-101.

About China Gold International Resources

China Gold International Resources is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Mine in Inner Mongolia, and the Jiama Mine in Tibet Autonomous Region of the People’s Republic of China. The Company’s objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).

Cautionary Note About Forward-Looking Statements

Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

For further information on China Gold International Resources Corp. Ltd., please refer to its SEDAR profile at www.sedar.com or contact Tel: 604-609-0598, Email: info@chinagoldintl.com, Website: www.chinagoldintl.com.