Announces Updated Mineral Resource for CSH Gold Property — M&I Estimates Increased 151%
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: +1-604-609-0598 E-mail: [email protected] www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
China Gold International Resources Corp. Ltd.
Announces Updated Mineral Resource for CSH Gold Property —
M&I Estimates Increased 151%
VANCOUVER, August 19, 2022 — China Gold International Resources Corp. Ltd. (TSX:CGG
and HKEx: 2099) (“ China Gold International Resources ”, “CGG”, or the “ Company”) today
announced that it has filed on SEDAR a National Instrument 43 -101 — Standards of Disclosure
for Mineral Projects ( “NI 43-101”) Technical Report with respect to the new Mineral Resource
estimates for the Chang Shan Hao ( “CSH”) Gold Project (the “ Project”) in Inner Mongolia
Autonomous Region, the People’s Republic of China.
The current life of mine for the Project runs until October 2025 at a production rate of 40,000
tonnes per day (“ tpd”). The Company has been carrying out exploration programs aimed at
extending the area of known mineralization and determining mineral resources at depth that
could be mined as an underground operation following the depletion of the mineral reserves at
the open pit operations.
Highlights
⚫ Measured and Indicated Mineral Resources mainly outside and below the ultimate shell
of the existing open pit mine increased by 151% from 56.6 tonnes (“t”) (1.82 million
ounces “Moz”) to 142 t (4.57 Moz) of gold at an average grade of 0.63 g/t Au, providing
basis for further studies on development of the mineral resources at depth;
⚫ For the existing open pit, Proven and Probable Mineral Reserves increased by 18% from
26.3 t (0.85 Moz) to 31 t (1 Moz) of gold at an average grade of 0.65 g/t Au;
⚫ Mining production rate at northeast open -pit operation is planned at 40,000 tpd or 13.2
million tonnes per annum (“Mtpa”) of run-of-mine (“ROM”) ore from 2022 to 2025; and
⚫ Annual gold production is estimated at 4.6 t or 147,893 oz from current open-pit operation
between April 2022 and October 2025.
Overview
The CSH Gold Project is a brown-field exploration project. The target zones are located outside
and below the ultimate shell of the existing open pit mining operation. The Project is located in
Wulate Middle Banner, Bayannao’er City, Inner Mongolia Autonomous Region, the People’s
Republic of China, about 630 kilometres northwest of Beijing. Inner Mongolia Pacific Mining Co.,
Ltd., a 96.5% subsidiary of the Company, owns a 100% interest in the Project area, including all
mineral resource and mineral reserve estimates, and mining oper ation reported in the technical
report.
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: +1-604-609-0598 E-mail: [email protected] www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
Geology
Tectonically, the CSH gold deposit is located in the North China platform, proximal to the edge
of North China platform with contact to the Junggar −Inner Mongolia −Hinggan fold belt, and
hosted in the Bilute Formation of Mesoproterozoic Bayan Obo Group. The gold mineralization is
controlled by a brittle-ductile shear structure, which is likely developed along the contact between
physical hard rocks and soft rocks, but preferentially within the soft horizon.
Mineral Resource Estimate
A Mineral Resource estimate, with an effective date of April 1, 2022, has been completed by
CGME Consulting Ltd. (“ CGME”) in accordance with the CIM Definition Standards and Best
Practice Guidelines under NI 43 -101, based on a Reasonable Prospect for Eventual Economic
Extraction. The updated Mineral Resource is delineated based on 368 drill holes totaling 158,092
m completed as of March 2022, of which 65 drill holes totaling 51,986 m were newly completed
prior to this resource estimate.
The Mineral Resources are summarized in Table below.
Location Mineral Resource
Category Tonnage (x1,000 t) Au (g/t) Au Metal (t) Au Metal (Moz)
Remaining within
the open pit limit
at a cut-off grade
of 0.28 g/t Au
Measured 23,590 0.65 15.42 0.50
Indicated 23,790 0.68 16.13 0.52
Measured+Indicated 47,380 0.67 31.55 1.01
Inferred 7,280 0.42 3.08 0.10
Underground at a
cut-off grade of
0.30 g/t Au
Measured 88,200 0.67 58.66 1.89
Indicated 89,850 0.58 52.07 1.67
Measured+Indicated 178,050 0.62 110.72 3.56
Inferred 62,090 0.49 30.68 0.99
Notes: Mineral Resources are reported in relation to a conceptual open -pit mining and underground block caving mining. Mineral
Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative
accuracy of the estimate. Raw assays have been capped. Mineral Resources include Mineral Reserves.
Mineral Resources are reported at a cut -off grade of 0.28 g/t Au for op en-pit mining, based on the following parameters: the heap
leaching & metallurgical recovery of 60% and gold bullion market price of USD 1,980 per ounce . Additional Mineral Resources are
reported at a cut-off grade of 0.30 g/t Au for underground block caving mining, based on the following parameters: the heap leaching
& metallurgical recovery of 60% and gold bullion market price of USD 1,980 per ounce . USD 1.0000=RMB 6.3457 dated in April
2022, and one troy ounce is equal to 31.1035 grams.
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: +1-604-609-0598 E-mail: [email protected] www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
Mineral Reserve Estimate
For the existing open pit mining operation , a Mineral Reserve estimate, dated effective April 1,
2022, has been completed by CGME in accordance with the CIM Definition Standards and Best
Practice Guidelines under NI 43-101.
The Mineral Reserves are summarized in Table below.
Category t (x 1,000) Diluted Au (g/t) Au (t) Au (Moz)
Proven 23,593 0.63 14.86 0.48
Probable 23,787 0.66 15.7 0.50
Total 47,380 0.65 30.56 0.98
Notes: Mineral Reserves are reported based on the optimized ultimate open pit limit. All figures are rounded to reflect the relative
accuracy of the estimate. Mineral Reserves are included in Mineral Resources.
Mineral Reserves are reported at a cut -off grade of 0.28 g/t Au for open -pit mining, based on the following parameters: the heap
leaching & metallurgical recovery of 60% and gold bullion market price of USD 1,568 per ounce . USD 1.0000=RMB 6.3457 dated
in April 2022, and one troy ounce is equal to 31.1035 grams.
Production Schedule
In accordance with the updated design of northeast pit, the existing open pit mining operation
can sustain another four years, including three years of steady production and one year of ramp-
down, as detailed in table below.
Item Unit 2022 2023 2024 2025 Total
Total Quantity of Ore and
Rocks 10,000 t 2,490 2,820 1,684.07 1,264.48 8,258.55
Ore 10,000 t 990 1,320 1,320 1,107.95 4,737.95
Rocks 10,000 t 1500 1500 364.07 156.53 3,520.60
Stripping Ratio t/t 1.52 1.14 0.28 0.14 0.74
Au Metal Mined kg 6,033.52 8,334.00 8,812.00 7,612.41 30,791.94
Diluted Au Grade g/t 0.61 0.63 0.67 0.69 0.65
Ore Haul Distance km 6.11 6.68 7.26 7.92
Rock Haul Distance km 6.50 7.14 7.68 8.34
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: +1-604-609-0598 E-mail: [email protected] www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: +1-604-609-0598 E-mail: [email protected] www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
For current year, 2023 and 2024, the planned mining production rate is 13.2 Mt of ore per year.
The mining operations will be wound up in 2025, and the heap leaching will continue until 2029,
as detailed in table below.
Item Unit 2022 2023 2024 2025 2026 2027 2028 2029
Ore
Throughput 10,000 t 990 1,320 1,320 1,107.95 0 0 0 0
Gold Ore
Grade g/t 0.61 0.63 0.67 0.69 - - - -
Gold
Recovery
Rate
％ 60 60 60 60 67 70 71 72
Gold Yield kg 3,623.4 4,989.6 5,306.4 4,586.91 532.87 228.37 76.12 76.12
Capital and Operating Costs
There is no further capital funding requirement for the open pit mining operation. T he working
capital remains unchanged at 175 million yuan. The estimated cash operating costs are 65.0
yuan /t ore (USD 10.24 /t ore).
Qualified Persons
A Technical Report titled "NI 43-101 Technical Report for the CSH Gold Property, Inner Mongolia
Autonomous Region, the People’s Republic of China" with an effective date of April 1, 2022 has
been prepared by CGME. The report has been filed on SEDAR (www.sedar.com).
Mr. Yuan Chen, MSc, MAIG, RPGeo, an associated Principal Geologist engaged by CGME and
a Qualified Person as defined by NI 43 -101, has reviewed the data underlying the Mineral
Resources and supervised the estimation of the Mineral Resources as well as reviewed the
entire Technical Report. Mr. Chen has approved the scientific or technical information pertaining
to the CSH Project’s Mineral Resources and Geology contained in this release.
Mr. Guangpian Zhang, FAusIMM, a full time Principal Mining Engineer for CGME and a Qualified
Person as defined by NI 4 3-101, has reviewed the data underlying the Mineral Reserves and
supervised the estimation of the Mineral Reserves as well as reviewed the reserve sections of
Technical Report. Mr. Zhang has approved the scientific or technical information pertaining to
the CSH Project’s Mineral Reserves, capital and operating costs, and cashflow analysis
contained in this release.
China Gold International
Resources Corp. Ltd.
__________________________________________________________________
Tel: +1-604-609-0598 E-mail: [email protected] www.chinagoldintl.com
Suite 660, One Bentall Centre
505 Burrard Street
Vancouver, BC
Canada V7X 1M4
Mr. Qiang Ji, FAusIMM, a full time Principal Processing Engineer for CGME and a Qualified
Person as defined by NI 43-101, has reviewed the data underlying the processing aspects of the
project and sections of the Technical Report. Mr. Ji has approved the scientific or technical
information pertaining to the CSH Project’s processing and product contained in this release.
Disclosure of scientific or technical information in this release was reviewed and approved by
Mr. Zhongxin Guo, P.Eng., the Company’s Chief Engineer and a Qualified Person for the
purposes of NI 43-101.
About China Gold International Resources
China Gold International Resources is a gold and base metal mining company incorporated in
BC, Canada and operates two mines, the CSH Gold Mine in Inner Mongolia, China and the Jiama
Copper-Gold Polymetallic Mine in Tibet, China. The Company’s objective is to build shareholder
value through growing production at its current mining operations, expanding its resource base,
and 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).
For further information on the Company, please refer to SEDAR’s website at www.sedar.com,
The Stock Exchange of Hong Kong Limited’s website at www.hkex.com.hk, the Company's
website at www.chinagoldintl.com, or call the C ompany at +1 -604-609-0598 and email to
Cautionary Note About Forward-Looking Statements
Certain information regarding China Gold International Resources contained herein may constitute forward-
looking statements within the meaning o f 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 t he 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 o f 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.