Jinshan Gold began producing gold at the Chang Shang Hao mine in July 2007.
Ivanhoe Sells Controlling Stake in Jinshan to China’s CNG
“This is the first step toward the formation of a long-term, strategic partnership between Ivanhoe Mines and China National Gold Group that will focus on gold and copper exploration and mine development opportunities in China,” said Robert Friedland, executive chairman, Ivanhoe Mines. “Industry research has confirmed that China’s gold industry has overtaken the United States and South Africa. China is expected to consolidate its position this year as the world’s largest gold producer. It is a dynamic industry in the world’s most remarkable economy, in a period of high gold values and a depreciating dollar.”
Ivanhoe Mines said it expects to realize “significant benefits” from its independent gold exploration programs now under way in China, through a cooperative partnership with CNG. A substantial portion of the proceeds of this asset sale will be dedicated to advancing Ivanhoe Mines’ gold and copper exploration ventures across China.
The CSH mine, located in China’s Inner Mongolia region, has produced 33,280 oz of gold to date, and is ramping up toward the projected capacity of 120,000 oz/y. A 50% increase in annual production up to 180,000 oz/y is being studied.
China National Gold Group President Sun Zhaoxue said he believes Jinshan can look forward to a bright, growth-oriented future in working with China National Gold to build a global gold producer. “We are impressed by Jinshan’s accomplishments in building and launching production at the CSH mine,” said Zhaoxue. “China National Gold Group will support Jinshan’s development and operations in China. Jinshan will continue to be based in Canada and we have plans to build it into a leading global gold producer as we pursue growth opportunities for our group.”
Ivanhoe Mines acquired its initial interest in Jinshan Gold Mines in May 2002. Since then, Jinshan’s ongoing exploration work has established that the CSH Mine has a measured and indicated resource, at a 0.35 g/mt cut-off grade, totaling 171.3 million mt at 0.71 g/mt gold, with 3.9 million oz of contained gold.
In addition, inferred resources now are estimated at 1.33 million oz of gold contained within 64.2 million mt grading 0.65 g/mt gold at a 0.35 g/mt cut-off. Jinshan’s Dadiangou discovery in Gansu Province has an estimated 778,000 oz of gold within an initial inferred resource of 26.3 million mt grading 0.92 g/mt, at a cut-off grade of 0.4 g/mt gold, and is considered a potential open-pit mine.