Majestic Provides Update FOR Songjiagou Open Pit GOLD MINE
MAJESTIC PROVIDES UPDATE FOR SONGJIAGOU OPEN PIT GOLD MINE
Vancouver, British Columbia – September 25, 2019 - Majestic Gold Corp. (“Majestic” or the
“Company”) (TSX.V: MJS, FSE: A0BK1D) is pleased to provide a n update on open pit operations at its
Songjiagou Gold Mine (“Songjiagou”) in Shandong Province, China.
Through the end of the third quarter of 2019, the Songjiagou operation produced 22,122 ounces of gold. The
third quarter results were achieved despite a 20% reduction in overall mined tonnage owing to several factors
including a focus on completing development of the high grade Songjiagou underground mine, continued
improvement on the roadways out of the open pit, and remediation efforts on the pit wall failure in the
southwest part of the Songjiagou pit.
According to Majestic President, Stephen Kenwood, “The Songjiagou underground mine will support and
enhance existing open pit production given the fact i t averages approximately four times the grade of the
open pit. The supplemental production will also have a significant impact on reducing production costs and
meeting our goal of increasing gold output in the future.”
At the present time, the main activity in the open pit is coming from the +69, +57, and +45 met re benches.
The +33 metre bench is also beginning to be developed and, based on modeling, a number of higher grade
zones should be encountered on this bench as well as on benches below it.
Engineering staff continually update the bench block model which is based on exploration data and data
gathered on an ongoing basis from blasthole sampling. Based on the current block model, the inventory of
material above the +21 metre level using a 0.2 g/t gold cut-off is as follows:
Unit +69 m +57 m +45 m +33 m Total
Ore t 102,086 1,133,799 2,582,882 3,149,555 6,968,322
Gold Grade g/t 0.68 0.46 0.89 1.09 0.91
Waste t 270,809 1,565,464 2,155,783 1,352,425 5,344,481
Strip Ratio t/t 2.65 1.38 0.83 0.43 0.77
Total Tonnage t 372,895 2,699,263 4,738,665 4,501,980 12,312,803
The Company is awaiting government approval for its application to increase production at the open pit
operation. It is anticipated that this approval will be granted in early fiscal 2020 and will provide for a
significant increase in production capacity.
At the present time there are three processing plants at the Songjiagou Gold M ine: a 2,000 tpd facility that
is subject to a purchase agreement with a third party; a 6,000 tpd plant; and a 1,200 tpd facility. In total, the
aggregate milling capacity at Songjiagou is 9,200 tpd day, providing the company with considerable room
to expand production in the future.
The Songjiagou Gold Mine is located less than 50 km from the port of Yantai which hosts a railway station
and airport. The project has good road access and is 8.0 km north of the Provincial Road 304, 11 km south
of State Highway 309 and 1.5 km east of a county road which connects the mine with the nearby cities.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
Electrical power for the mine is supplied by a local 10 kV electrical line and standby 120 kW diesel
generators while water for industrial and domestic use is available within 2.0 km of the mine site.
Stephen Kenwood, P. Geo., a Director of Majestic, is the Qualified Person within the context of National
Instrument 43-101 and has read and approved this news release.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in
commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional
information on the Company and its projects is available at www.sedar.com and on the Company’s website
at www.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]
Website: www.majesticgold.com
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