Shanghai mining exploration company Allied Minerals today announced that ore extraction at its Shandong property has increased three fold since January this year.
Mar. 14, 2013 - PUDONG, China -- China based, Allied Minerals acquired the Shandong property back in 2012 following its identification and risk assessment approval by Executive Director Mr Henry Huan BSc, MSc. Preliminary tests and Initial ore samples immediately indicated the presence of gold veins, and production was underway late last 2012. However, during the first quarter of 2013 Allied Minerals extended the Shandong exploration area resulting in the discovery of underground intersecting veins. While these veins may marginally increase the cash cost of each ounce of ore extracted, the ore is accessible, and production costs are still comparatively low.
Mr Henry Huan said “I have been with Allied Minerals since 2001, but I think now one of the most exciting times in our company's history, as we are seeing strong throughput at Shandong and we are in a position to expand and grow as a company”.
Allied Minerals CEO Mr Kevin Dao commented “Shandong province has a long history of gold mining exploration and it is one of the more mineral rich regions in China, so it is perhaps unsurprising that Allied Minerals exploration has revealed this high level of mineralisation. We are excited to have increased our output via this license and see it as a step in the right direction. What is important here is the increase in our ore extraction, and the value this will create for our shareholders”.
Although the amount of ore being extracted at Shandong has increased significantly, at this early stage Allied Minerals are able only to estimate the extent of the mineralisation at Shandong, and so cannot accurately determine the lifespan of the mine. According to CEO Kevin Dao, this is something that will be determined in due course. Current estimations would suggest reserves of approximately 1.8 million ounces of mineral gold, with an ore grade of 1.975 g/t. Mr Dao insists however, that these figures are preliminary only.
Sections of this announcement may contain forward-looking statements which reflect management's best judgment based on factors currently known but involve significant risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements.