CHH Mine Completes 30,000 TPD Crushing Systems

VANCOUVER - China Gold International Resources Corp. Ltd. reported that expansion construction at the Company’s Chang Shan Hao Gold Mine (CSH), is progressing rapidly and is in line with the expected timeline.  The Company reached a monumental milestone in the expansion construction process by completing its new additional 30,000 tpd crushing system, which is currently being tested.

CSH Expansion Highlights and Crushing Plant Commissioning Ceremony: A ribbon cutting ceremony was held at CSH on August 1, 2013 for a test run on its newly completed 30,000 tpd stand-alone crushing facility; The heap leaching system construction is progressing according to the schedule. The leach pad liner bedding is 100% complete, with 50% of geomembrane complete and 25% of overliner material complete and is now ready for newly crushed ore stacking; Construction of the new ADR (Absorption, Desorption and Refining) plant system is completed.  The Company expects first gold pour at this new plant in the 4th quarter of 2013.

As set out in the mine expansion feasibility study completed and filed in November 2012, the CSH Mine’s processing capacity is expected to double from 30,000 tpd to 60,000 tpd.  Gold production is also expected to nearly double from its 2012 level of 139,443 ounces per annum to about 260,000 ounces per annum by 2015. According to the feasibility study, estimated capital expenditure for the expansion was approximately US$213 million, and the after-tax NPV of the project is US$642 million at a 9% discount rate.

Xin Song, the CEO and Executive Director said, "We are very pleased with rapid execution of our expansion plans on both of our mines. We are proud to assure our shareholders that we are upholding our commitment to them on the expansion construction timeline. CSH mine has made a tremendous progress to complete the crushing facility ahead of the schedule by utilizing the talents of our people and the strengths of our major shareholder China National Gold.

The company expects production of 145,000 ounces of gold from the CSH Mine in 2013, and to produce at about 80% of the full 60,000 tpd capacity in 2014 due to the production ramp up period required after the construction is completed.

In 2014 the company is expecting productions of a full 60,000 tpd capacity

China Gold International Resources Corp. Ltd. is based in Vancouver, BC. The company operates 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.