Sino Gold (ASX:SGX, SEHK:1862) is pleased to provide the following update on the progress of the Jinfeng Gold Mine.
The plant ramp-up to design throughput and production levels has proceeded well, however continuous operation has been impacted by persistent rainfall across southern China in late June. Highlights of performance during the month of June, prior to this impact are:
- Gold recovered of 5,800 ounces;
- Gold sold of 2,542 ounces at an average price of US$646/ounce;
- Milling of 53,000 tonnes at a head grade of 5.5g/t gold;
- The grinding and flotation circuit operated with good availability of 87% from June 10th;
- Average milling rate of 115 tonnes per hour or 77% of design; and
- The BIOX section performing well with concentrate supplied to the BIOX plant increasing to an average of approximately 80% of planned throughput rates.
Commissioning and production ramp-up was proceeding in line with expectations prior to rain impacting operations. Crushing, grinding and BIOX circuit capacity, in particular, appear to be capable of performing well in excess of levels required to meet the design gold production rate of 180,000 ounces per annum.
Flotation recovery of up to 77% has been achieved. However, average recoveries have been impacted due to the flotation circuit operating intermittently as concentrate feed rates have been restricted during the ramp up to BIOX design capacity.
As expected during this phase of a new operation, there have been some interruptions to production including:
- Mechanical difficulties with flotation thickener early in June caused approximately 100 hours downtime. The plant has performed with good levels of availability since its modification.
- Discharge of tailings into the CIL dam since late June has been impacted by persistent rainfall totalling approximately 280mm for June. This rainfall has necessitated the Company to remove excess water in a controlled manner from the CIL dam. Relevant approvals are in the process of being obtained as this is the first time water is being removed from the CIL dam.
Guidance for Jinfengs September quarter production will be provided in Sino Golds quarterly report (scheduled to be released on Tuesday, 24 July), once the impact of the slow start in July has been fully evaluated.
Underground development beyond portal construction is on hold pending requisite approvals being granted by relevant authorities. Decline commencement is aimed at bringing forward increased ore production to the levels required to potentially expand the processing plant. Re-scheduling of underground development is in progress to enable ore in upper levels of the underground mine to be accessed more quickly. Approvals for the decline development are expected later this month.
-ENDS-
Regards,
Julia Brown
Sino Gold Mining Limited
Level 22, 44 Market Street
SYDNEY NSW 2000
Ph: (02) 8259 7000