TSX-V-listed Majestic Gold has achieved full production at its Songjiagou underground gold mine, in China’s Shandong province, after successfully meeting the requirements of a comprehensive government certification programme.
Commenting on the achievement, Majestic president Steve Kenwood said in a statement on Thursday that the new mine, which he described as a modern, high-grade operation, would allow for a significant increase in low cost gold production, in addition to providing an exploration platform for defining new gold resources at depth and along strike.
Ore from the underground mine is about four times the grade of the openpit and would be batch-processed in the company’s surface plant to optimise metal recoveries.
The entrance to the underground mine is situated about 405 m north-east of the Songjiagou openpit.
Construction of the underground project, including the installation of all ancillary infrastructure, is complete to the point where full production capacity of 300 t/d of ore is being achieved.
Ramp development to working levels within the underground mine is ahead of schedule and under budget, the company noted.