China Gold Mines , started in the year 2006 is a gold resource company focusing on the discovery and development of gold projects. The Guanzhuang project is an important mineralised gold and base metal region containing the Xiaotaoyuan and Shenjiaya prospects. China Gold Mines successfully transferred the eight producing gold mines into its possession and control.
China Gold Mines has received the Independent Geological Report estimating a JORC complaint inferred resource of gold of 1.83m oz. China Gold Mines considers the acquisition of eight mines as a transformation from junior explorer to producer that has a target to achieve 100,000 oz per year.
China Gold Mines was established to develop mining prospects in China initially focusing on gold. The company has entered into a joint venture with Brigade 407 to form Hunan Westralian Mining Company for the purpose of exploring and developing the cooperation area. The Shenjiaya project has five operational mines in which two are in development and one dormant.
The Guanzhuang project of China Gold Mines produces high grade ore operating with low capital and costs. It consists of stable ground conditions with simple metallurgy. It explores the brown fields and existing mines with the potential for production revenues. Guanzhuang project also comprises of low-cost skilled labour pool and good infrastructure.