Reserves of 562.37 tons! China's largest monomer gold mine obtained a mining license

Source: Mining

Zhaojin Mining Co., Ltd. recently announced that the gold mine in the northern part of Sanshan Island, a subsidiary of the company's holding subsidiary, Has obtained a mining license issued by the Department of Natural Resources of Shandong Province on July 20, with a production scale of 3.96 million tons per year, a mining area of 5.828 square kilometers, and a validity period of 15 years.

The successful processing of mining licenses marks that the construction of gold mines in the sea area has entered the fast lane of comprehensive development. Located in the first-class mineralization belt of The Jiaodong region, SanshanDao-Cangshang Fault Mineralization Belt, the sea area gold mine is the most important gold mineralization belt in China, with abundant surrounding special and large and medium-sized gold deposits, extremely superior mineralization geological conditions, unlimited future resource potential and huge development space.

As of 31 December 2020, according to the standards set out in the JORC code, the maritime gold mine held a mineral resource of 562.37 tons, with an average grade of 4.20 g/t, far exceeding the national average and the largest monomer gold mine found in the world in the past 20 years. Moreover, the geographical location of the gold mine is only 45 kilometers away from the company's own port zhaoyuan city, adjacent to the company's existing mines and infrastructure in the port of Zhaoyuan, and the surrounding infrastructure and transportation network of the project have mature development, and the development environment is ideal, which is conducive to expanding production capacity, exerting synergy effects and improving efficiency.

The total investment in the construction of the sea area project is about 7.3 billion yuan, and the design scale is 12,000 tons per day. After the mining right license is obtained, the company will adhere to high standards, high starting point positioning, with the purpose of "safety, efficiency, green and intelligence", and organize the construction and production of the world-class intelligent mine as soon as possible. After the project reaches production, it will produce more than 510,000 ounces of gold per year, driving the company's gold production by nearly 50%.

Due to the large reserves, high grade and low cost of gold mines in the sea area, while the future scale grows, the company's profit margin will also be improved, which will undoubtedly become the company's largest performance growth engine, enhance the company's influence and competitiveness in global gold resources, and accelerate to become a world-class gold mining company with international competitiveness. Industrial Securities has issued a research report, due to the low cost of mining gold in the sea, high grade, large reserves, some brokers expect that the gold mine will become the company's main growth driver after 2023.

At present, in the context of inflation expectations, major investment banks have been optimistic about the trend of gold prices, the world's famous investment bank Goldman Sachs expects the gold price in 2021 to be 1977 US dollars / ounce, 2022 to be 2000 US dollars / ounce, the future gold price will still maintain an upward trend. The company's current PB/PE is only 1.15 times / 14.8 times, far lower than the Hong Kong stock gold and precious metals sector of 2.8 times / 49 times, the sea area project into the fast lane will reshape the valuation of Zhaojin Mining, ushering in the development trend of volume and price rise.

Weng Zhanbin, chairman of Zhaojin Mining Co., Ltd., said that the acquisition of the sea gold mine mining license is another milestone after the company's acquisition of the project, marking a solid step towards the comprehensive construction of the sea area gold mine project. In the future, after the sea gold mine is put into operation, it will significantly expand the company's existing production capacity, increase the company's self-produced gold production, optimize the existing production costs, and help the company achieve the strategic goal of medium- and long-term development.

Source: Zhaojin Mining Co., Ltd

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