VANCOUVER, April 30, 2014 /PRNewswire/ - China Gold International Resources Co. Ltd. (TSX:CGG; HKEx: 2099) ("China Gold International Resources" or the "Company") provides an update on first quarter of 2014 ("Q1" or "Q1 2014") production and operations at its Jiama Copper-Gold Polymetallic Mine in Tibet Autonomous Region of the People's Republic of China ("Jiama Mine", or "Jiama").
Power Supply at Jiama:
As previously announced the Company's Jiama Mine experienced reduced power supply during Q1 2014. Consequently, Jiama Mine's copper and other metals output during Q1 2014 was severely reduced. Jiama's 6,000 tpd Phase I processing plant was closed for most of Q1. The stripping work for Phase II expansion has not been affected. The Company mitigated the effect of those disruptions by scheduling equipment maintenance and time off for employees during that time.
On March 31, 2014, with the assistance from the local government, local power supplier in the Tibet Region and through the use of locally generated thermal power, adequate power supply has been re-established. Subsequently, production reached full 6,000 tpd capacity level of Phase I in the month of April 2014. The Company was able to achieve record copper production levels in April 2014.
The Company expects that its power costs will be higher than previously paid until a permanent power supply solution is established. Further negotiations are on-going with the local government and local power provider to ensure reliability, availability and acceptable price of the electricity supply in the medium and long-term.
Q1 2014 and Full Year 2014 Production and Operating Outlook for Jiama:
As a result of the power shortages, the Company anticipates reporting significant decline of production, revenues and net profit at the Jiama Mine during the first quarter of 2014. The Company will announce its first quarter 2014 results on May 15, 2014.
Local government of the Tibet Autonomous Region and the Central Government of China are currently progressing a power supply development plan including new hydro power station development plan to solve the problem of seasonal power shortage in the Tibet Region.
At this time, the construction of Phase II expansion is not expected to be significantly affected by the power shortage and is expected to be completed on time. Once the Company is satisfied with the medium and long-term arrangements for power supply, the Company expects to launch operations of stage one of its Phase II expansion for the Jiama Mine. The Company expects that its ongoing initiatives to increase production, productivity and efficiency at the Jiama Mine will enable it to meet its previously expected 2014 production guidance of approximately 50 million pounds of copper. However, due to uncertain nature of those initiatives, the Company will need to confirm its 2014 guidance for the Jiama Mine in mid-2014.
Jiama's production capacity will grow in 2 stages. At the completion of stage one, scheduled for the second half of 2014 the new mill's capacity is expected to grow from 6,000 tpd to 28,000 tpd of ore. Stage two construction of an additional 22,000 tpd capacity is expected to be completed by the second half of 2015. This expansion will grow Jiama's processing capacity nearly 8 times from 6,000 tpd in 2013 to 50,000 tpd in 2015. By 2016, copper production is expected to reach 176,000,000 pounds.
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.