XIAMEN, July 28, 2015 /PRNewswire/ -- Hengxing Gold Holding Company Limited ("Hengxing Gold" or the "Company") (HKEx: 2303) would like to announce its 2015 second quarter operational updates for its wholly owned Gold Mountain Mine. Gold Mountain Mine is the largest gold mine in China's Xinjiang region in terms of JORC gold resources, annual ore processing capacity and gold production volume at full production level.
2015 Q2 Production Updates
Based on the preliminary results for the six months ended 30 June 2015, Hengxing Gold expects to record a profit turnaround for the first half of 2015 due to substantial growth in gold production and sales as compared to the corresponding period in 2014. The mining operation crushed and processed 1,778,675 tonnes of ore and produced 15,514 ounces (equivalent to 482.52 kg) of gold dore in the first half of 2015, representing a significant increase by approximately 70% and 121% respectively as compared to 1,046,260 tonnes ore processed and 7,012 ounces (equivalent to 218.1 kg) gold dore produced for the same period last year.
In addition to current mining operations at the Yelmand prospect and Mayituobi prospect within Gold Mountain Mine, the Company plans to develop a third mining operation at Kuangou prospect, which is designed as an open pit to accommodate 1.5 million tonnes per annum ore processing capacity. The development of the Kuangou prospect is high on the agenda considering that its ore has a relatively higher average gold grade and easier to process compared with ore mined from other prospects within the Gold Mountain Mine.
2015 Exploration Updates
The Company has made progress in the joint exploration in Bohegou area with Western Region Gold Ili Company Limited. The Joint exploration discovered several continuous gold-in-soil anomalies in the area. The preliminary exploration design of geological mapping, trenches and drillholes has been completed in June 2015. The Drilling will start in August this year after tendering of geological works.
Updates of Arbitration against Trio China Ltd
Xinjiang Gold Mountain Mining Co., Ltd. ("Jinchuan Mining"), a wholly owned subsidiary of the Company filed an arbitration to Xiamen Arbitration Commission (the "XMAC") against Trio China Ltd, whom has the contractual responsibilities for designing and fabricating the crushing system used in Gold Mountain Mine which has failed to meet certain acceptance criteria and production performance measures. In the arbitration application submitted to the XMAC, the Company is seeking from Trio China compensations for losses and damages totalled RMB 46,213,900. The XMAC has held the first session of the Arbitral Tribunal on 25 June 2015 with no conclusions made. The second session will be heard during August 2015.
About Hengxing Gold Holding Company Limited (HKEx: 2303)
Hengxing Gold is an emerging gold mining company in China and currently operating the largest gold mine in Xinjiang, with 3.2 million ounce of gold resources and 2.2 million ounce of gold reserves. Hengxing Gold's growth strategy is to operate multiple gold mines cost efficiently and grow its resources base by making acquisitions that will bring additional value to its shareholders.
For more information, please visit www.hxgoldholding.com.
Contact Information:
Hengxing Gold Holding Company Limited
Fanny Zhao
Investor Relations Manager
+86 (592) 2969521
hxgold@xmhxgroup.com
