HomeGoldChinese No. 2 plans to double production

Chinese No. 2 plans to double production

Gold “’ Chinese
No. 2 intends
doubling production
 
Kalgoorlie, Australia — MININGREVIEW.COM — 04 August 2009 – Sino Gold Mining Limited “’ the owner of China’s second-largest gold mine, “’ plans to double production of the precious metal by 2012, helped by the start of new mines.

“Our Eastern Dragon mine, which is scheduled to start production in late 2010, will produce an average of 90 000 oz a year at a cost of US$125/oz for at least five years,” chief operating officer Cobb Johnstone told the Diggers and Dealers Conference here. He did not reveal what the targeted output was.

“It starts to give us some pretty attractive margins,” Johnstone said of Eastern Dragon. “Gold price margins in 2009 should be close to US$500/oz.”

China, “’ where Sino Gold is targeting to start as many as five gold mines to add to its Jinfeng, White Mountain and Eastern Dragon projects “’ may overtake India as the world’s top gold consumer this year, according to the World Gold Council.

The company wants to cut its overall production costs to US300/oz, Johnstone added. It produced gold at an average cost of US$391/oz in the second quarter.

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