China’s Jinfeng Gold Mine Restored to Full Production


Sino Gold’s Jinfeng process plant was designed for 1.2 million mt/y.
Sino Gold Mining reported during late February that the power supply in Guizhou Province has returned to normal and the company’s Jinfeng mine is now operating at full power. Following the severe winter ice storms which caused major disruptions on China’s power and transport systems during the recent Chinese New Year holidays, the power restrictions imposed in late January have been lifted. During this period, Jinfeng continued gold production at a reduced rate in line with power availability.

Jinfeng’s gold production during January and February has been impacted by approximately 7,000 oz. The company’s 2008 Jinfeng production guidance remains in the range of 170,000-190,000 oz.

Located in the heart of the Chinese gold mining region referred to as the Golden Triangle, Jinfeng is Sino Gold's flagship project and is considered to be the largest known Carlin-type deposit in China. Once developed, it will be the second largest gold mine in China with planned initial gold production of approximately 180,000 oz/y. Sydneybased Sino Gold owns 82% of the project. Construction started in February 2005 and gold production commenced in May 2007. According to Sino Gold CEO Jake Klein, the actual production for the mine from April 2007 to January this year was 57,000 oz.

Construction of the Jinfeng processing plant began in February 2005 and was completed in March 2007. Upon reaching planned production rates in the second half of 2007, the Jinfeng operation is forecast to comprise:
• 80,000 oz of gold per year at cash operating costs of about $220/oz.
• Ore throughput of 1.2 million metric tons per year (mt/y) at a head grade of more than 5 g/mt gold.
• Open-pit mining using a combination of large haul trucks, excavators and shovels to mine 16 million mt/y of waste rock and ore.
• Average strip ratio of 14.9:1 based on current ore reserve of 3.2 million oz.

In August 2006, Sino Gold’s board of directors approved the early commencement of underground development at Jinfeng. Pre-production capital to first ore production from the underground mine in mid-2008 is estimated at US$20 million. Developing the underground mine will provide the capacity to deliver in excess of the nominal 1.2 million mt/y design capacity of the plant.

As featured in Womp 08 Vol 3 - www.womp-int.com