VANCOUVER, BC / ACCESSWIRE / September 25, 2019 / Majestic Gold Corp. ("Majestic" or the "Company") (TSXV:MJS)(FSE:A0BK1D) is pleased to provide an update on open pit operations at its Songjiagou Gold Mine ("Songjiagou") in Shandong Province, China.
Through the end of the third quarter of 2019, the Songjiagou operation produced 22,122 ounces of gold. The third quarter results were achieved despite a 20% reduction in overall mined tonnage owing to several factors including a focus on completing development of the high grade Songjiagou underground mine, continued improvement on the roadways out of the open pit, and remediation efforts on the pit wall failure in the southwest part of the Songjiagou pit.
According to Majestic President, Stephen Kenwood, "The Songjiagou underground mine will support and enhance existing open pit production given the fact it averages approximately four times the grade of the open pit. The supplemental production will also have a significant impact on reducing production costs and meeting our goal of increasing gold output in the future."
At the present time, the main activity in the open pit is coming from the +69, +57, and +45 metre benches. The +33 metre bench is also beginning to be developed and, based on modeling, a number of higher grade zones should be encountered on this bench as well as on benches below it.
Engineering staff continually update the bench block model which is based on exploration data and data gathered on an ongoing basis from blasthole sampling. Based on the current block model, the inventory of material above the +21 metre level using a 0.2 g/t gold cut-off is as follows:
Unit | +69 m | +57 m | +45 m | +33 m | Total | |
Ore | t | 102,086 | 1,133,799 | 2,582,882 | 3,149,555 | 6,968,322 |
Gold Grade | g/t | 0.68 | 0.46 | 0.89 | 1.09 | 0.91 |
Waste | t | 270,809 | 1,565,464 | 2,155,783 | 1,352,425 | 5,344,481 |
Strip Ratio | t/t | 2.65 | 1.38 | 0.83 | 0.43 | 0.77 |
Total Tonnage | t | 372,895 | 2,699,263 | 4,738,665 | 4,501,980 | 12,312,803 |
The Company is awaiting government approval for its application to increase production at the open pit operation. It is anticipated that this approval will be granted in early fiscal 2020 and will provide for a significant increase in production capacity.
At the present time there are three processing plants at the Songjiagou Gold Mine: a 2,000 tpd facility that is subject to a purchase agreement with a third party; a 6,000 tpd plant; and a 1,200 tpd facility. In total, the aggregate milling capacity at Songjiagou is 9,200 tpd day, providing the company with considerable room to expand production in the future.
The Songjiagou Gold Mine is located less than 50 km from the port of Yantai which hosts a railway station and airport. The project has good road access and is 8.0 km north of the Provincial Road 304, 11 km south of State Highway 309 and 1.5 km east of a county road which connects the mine with the nearby cities. Electrical power for the mine is supplied by a local 10 kV electrical line and standby 120 kW diesel generators while water for industrial and domestic use is available within 2.0 km of the mine site.
Stephen Kenwood, P. Geo., a Director of Majestic, is the Qualified Person within the context of National Instrument 43-101 and has read and approved this news release.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company's website at www.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: info@majesticgold.com
Website: www.majesticgold.com
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SOURCE: Majestic Gold Corp.