Hongshannan Gold Mine

Hongshannan Gold Mine is located at the southwest-west direction, 80 km away from the Hami City of the Xinjiang Uygur Autonomous Region.

Pursuant to the JORC Resource Estimate at a lower cut-off grade of 1.0 gram/tonne as at 30 November 2011 prepared by Philip A. Jones, a competent person as defined in the Listing Rules of the GEM of the Stock Exchange, the reserve estimates were summarized below:

 Hongshannan table 11

After five years' mining and production, the resource estimates of Hongshannan Gold Mine as at 31 March 2016 were confirmed by the Group’s internal experts as follows:

 

After the usual suspension of mining and processing activities in the winter of 2015, the Company delayed the production of the mining work in the Hongshannan Gold Mine till the end of May 2016 due to its extensive engineering work. Since the Hongshannan Gold Mine has come to its final stage of mining prior to exhaustion, the outputs from the mine has decreased.