2014 production is growing and beating guidance
VANCOUVER, Feb. 2, 2015 /CNW/ - China Gold International Resources Corp. Ltd. (TSX:CGG; HKEx: 2099) ("China Gold International Resources" or the "Company") is pleased to provide preliminary guidance on 2014 operating, production and exploration results at both of its mines and announce its goals for 2015.
2014 Production Highlights - Gold:
- The Company's consolidated gold production from both of its mines increased by 22% from 148,326 ounces in 2013 to 180,674 ounces in 2014 surpassing its previously announced 2014 guidance of 165,000 ounces.
- Gold production from the Chang Shan Hao Gold Mine ("CSH Mine" or "CSH") mine increased by 24% from 131,418 ounces in 2013 to 163,443 ounces in 2014.
- Most of the production increase was attributable to the Company increasing its mining rate from 30,000 tpd to 60,000 tpd to meet the newly expanded crushing capacity. The Company commenced commercial production on the facilities in October 2014 after successful test runs.
- Gold production from Jiama increased slightly by 2% from 16,908 ounces in 2013 to 17,231 ounces in 2014.
2014 Production Highlights - Copper:
- Copper production from the Jiama Copper-Gold Polymetallic Mine ("Jiama Mine" or "Jiama") increased by 9% from 28,323,626 pounds in 2013 to 30,847,469 pounds in 2014. This is the fourth straight year of increasing production at the Jiama mine.
- The Company exceeded its previously announced 2014 expected copper production guidance of 28.6 million pounds.
Mr. Bing Liu, CEO of the Company, commented, "We delivered another year of growing production at both of our mines. Not only we are beating production guidance but we are also focusing on profitability and returns to our shareholders, while also remaining vigilant in monitoring our costs. Global economic factors give us hope about potential stability in the gold price. The Company is well financed, has a solid investment grade rating and is supported by its shareholders, including its largest shareholder China National Gold Group. We believe that these factors will assure our long-term success."
2015 Production and Operating Outlook:
Organic growth, profitability and cost management and international expansion continue to be the Company's main goals for 2015. The Company plans to continue to work very closely with China National Gold, the largest gold producer in China and a major shareholder of the Company. We serve as an international expansion vehicle for China National Gold and one of our mandates from them is to acquire and further develop accretive, top-quality assets. We continue to leverage their financial capabilities and technical expertise to facilitate financing of those acquisitions and to develop them into profitable producers.
CSH Developments and Outlook:
The 2015 gold production from the Company's CSH Mine is expected to be approximately 210,000 ounces.
As previously announced, gold production is expected to increase from its 2014 level of 163,443 ounces to about 260,000 ounces per annum by 2016.
Jiama Developments and Outlook:
The 2015 copper production for the Company is expected to be approximately 53 million pounds.
The 2015 gold production from the Jiama Mine is expected to be approximately 16,000 ounces.
Phase II expansion at the Jiama Mine is progressing as planned. The first stage of Phase II expansion facilities construction, including ore storage silo, crusher, mills floatation circuits, thickeners, and power and water supply systems was completed in the second quarter of 2014. This increased the mill processing capacity from 6,000 tpd to 26,000 tpd. The pre-striping for open pits and ore transportation system for the first stage of the Phase II production facility was completed in the second half of 2014. The new production facility is currently under testing.
The Company did not carry out any additional exploration at the Jiama Mine in 2014 as it focused on phase II expansion.
Final Year-End 2014 Results and Conference Call
China Gold International Resources expects to report its Year-End 2014 Results on March 25, 2015 and the results will be available on the Company's website and SEDAR. In connection with the release, management will hold a conference call to discuss year-end results and performance. The Company will provide further details about precise timing of the release date and the call at a later date.
About China Gold International Resources
China Gold International Resources Corp. Ltd. is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Gold Polymetallic 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.
SOURCE China Gold International Resources Corp. Ltd.
For further information: Elena M. Kazimirova, Investor Relations Manager and Financial Analyst, Tel: +1.604.695 5031, Email: firstname.lastname@example.org, Website: www.chinagoldintl.com