China Gold International Resources Engages SRK to Advance Independent NI 43-101 Feasibility Study for CSH Mine Underground Development Early Underground Development Works Underway as CSH Mine Advances Transition from Open-Pit to Block-Caving Mining
China Gold International Resources Corp. Ltd. (CGG) has engaged SRK Consulting to conduct an independent, feasibility-level assessment and prepare a National Instrument 43-101 (NI 43-101) technical report for the planned underground development of its Chang Shan Hao (CSH) Gold Mine in Inner Mongolia, China. The company is transitioning from its existing open-pit operation to underground mining, with block caving selected as the principal mining method for mineralization beneath and adjacent to the current pit.
The engagement involves two distinct phases. Phase I consists of a comprehensive gap analysis of existing geological, engineering, and technical information against NI 43-101 and CIM standards to identify areas requiring further verification or additional technical work. SRK noted that this phase does not certify or convert the existing Chinese preliminary design into an NI 43-101 study. Phase II will see SRK independently undertaking the technical and economic assessment to support a feasibility-level study and prepare the corresponding NI 43-101 technical report. The resulting mine plan, production profile, mine life, Mineral Reserve estimate, and economic analysis may differ materially from the existing domestic preliminary design.
The SRK engagement places particular emphasis on rock mechanics, geotechnical, and hydrogeological investigations to assess the suitability and design of block caving, including rock mass behavior, caveability, ground stability, and underground water conditions. The domestic Preliminary Design was prepared for Chinese engineering, construction, and regulatory purposes and does not constitute a feasibility study or technical report under NI 43-101. The underground development concept relates to mineralization previously included in the Company’s 2022 NI 43-101 technical report. The Company cautions that Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Separate from the independent international study, early underground development activities have already commenced under China’s domestic engineering framework. Contractors have mobilized to site, and early underground development works have started, including initial underground access development and related site and infrastructure preparation. These activities are based on the domestic "Preliminary Design" and are distinct from the independent NI 43-101 work.
Chairman and CEO Chenguang Hou stated that advancing the underground potential is a priority as the open-pit operation approaches the later stage of its mine life. He emphasized the need for an independent technical and economic basis under internationally recognized reporting standards to ensure long-term viability.
“As the CSH Mine open-pit operation approaches the later stage of its mine life, advancing the underground potential of CSH Mine has become an important priority for the Company. Early underground development activities have commenced based on the engineering and development work completed under the applicable domestic framework. At the same time, given the scale, technical complexity and long-term importance of the proposed block-caving operation, we believe it is essential to establish an independent technical and economic basis for the project under internationally recognized reporting standards.” — Mr. Chenguang Hou, Chairman and Chief Executive Officer