XIAMEN, China, Oct. 27, 2015 /PRNewswire/ -- Hengxing Gold Holding Company Limited ("Hengxing Gold" or the "Company") (HKEx: 2303) would like to announce its 2015 third 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 Q3 Production Updates
During the third quarter of 2015, the Group's Gold Mountain Mine crushed and processed approximately 1.23 million tonnes of ore and produced 15,673.7 ounces (equivalent to 487.5 kg) of gold, approximately 23% and 38% greater than the figures for the same period last year. The significant increase in gold production was mainly due to the Company's continuous effort to improve the current processing system.
In addition to current mining operations at the Yelmand prospect and Mayituobi prospect, the Company is planning for two more open pits at the Kuangou prospect and the Jinxi-Balake prospect. Initial stripping at the Kuangou prospect has commenced this August and is estimated to complete in a year. Metallurgical test at the Jinxi-Balake prospect will be conducted this year to help assess its gold recovery rate and mining design. The Company has engaged Beijing General Research Institute of Mining and Metallurgy to test the feasibility of a daily ore processing capacity of 3000 tonnes CIL plant.
2015 Q3 Exploration Updates
The Company has made progress in the early-stage exploration of Bohegou area with Western Region Gold Ili Company Limited. After mapping and rock chip sampling, a 700 meter drill hole is being drilled in September 2015 and the Company expects test results to be available before year end.
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 Arbitral Tribunal on 25 June 2015 and 12 August 2015 respectively, but no award has been issued yet.
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 any further information, please visit www.hxgoldholding.com.
Contact Information:
Hengxing Gold Holding Company Limited
Fanny Zhao
Investor Relations Manager
+86 (592) 2969521
hxgold@xmhxgroup.com
