Zhangjiafan Gold Mine, PRC.


The Zhangjiafan Gold Mine ("ZJF Gold Mine") is 81.5% held by Jiujiang Gaofeng Mining Industry Company Limited ("JJGF"), a Wholly-Owned-Foreign-Enterprise ("WOFE") in the Province of Jiangxi, which is wholly owned by a Hong Kong company - GAOFENG HOLDING COMPANY LIMITED.

The ZJF Gold Mine is an underground mining property, founded in the ductile shear ophiolitic complex zone on the southeast margin of the Yangtze platform.  Gold is the major valuable mineral found exclusively in its quartz-phyllite veins.

Property Location, Accessibility, Climate and Infrastructure

The ZJF Gold Mine is located in the province of Jiangxi in south central China with geography coordinates of E117° 40'57" - E117°41'27", latitude N29°02'01" - N29°02'30".  The property consists of a 0.497 km2 concession area and is permitted for mining gold bearing ores from +120 m above sea level (asl) to -400 m below sea level.

The ZJF Gold Mine is highly accessible.  It is located 13 km northeast of Dexing City.  It is only 5 minutes driving distance from the Jiangxi Copper Mine, 30 minutes to the highway, 90 minutes to the nearest airport in the city of Jingdezhen, and 3.5 hours to another airport in the capital city of Jiangxi Province – Nanchang. 

The mining region belongs to a sub-tropical climate with long rainy days in spring and summer; the average annual precipitation is 1,853mm, with maximum rainfall 2,838.6mm during summer time.  Winter is dry and cool.  The average temperature in January is 4.7°C and July is 26.6°C, the recorded extreme temperature ranges from 40.7°C to -8.7°C.

The ZJF Gold Mine has excellent infrastructure support.  It is located 3.5 km away from the state-owned Jiangxi Copper Mine, the largest porphyry copper mine in Asia and the fifth largest in the world, which brings positive economic development to the city of Dexing.  The ZJF Gold Mine benefits from a well-constructed electricity grid and a network of asphalt roads.  Nearly all the needs for the development of the gold mine such as building materials, timber, electric power and water are locally supplied.


Property Description

The ZJF Gold Mine holds up-to-date and valid business operating licenses, and mining-related permits that include (1) Mining Permit, (2) Gold Mining Permit, (3) Production Safety, (4) Registration of Jiangxi Blasting Operating Unit, (5) Pollutant Emission Permit, (6) Water Collecting Permit and (7) Approval of Conservative Use of Land and Water.

In the ZJF Gold Mine, the gold mineral is concentrated by a common metallurgy called flotation process. The gold recovery plant in the ZJF Gold Mine consists of a scale crushing facility , a mill factory and a series of concentrate collection pools.  The mill consists of a ball grinder and a series of flotation machines.  The ball grinder can produce -200 mesh grain size product which accounts for 65% of the initial mill feed. Flotation machines are setup for three circulations for the grinded product, from coarse to the finest.  Chemical reagents are used during flotation which promote a layer of froth holding the valuable minerals to be separated by a sweeping operation.

The plant successfully passed a test run, proving that it could process an average of 150 tons of ore daily (maximum 180 tons a day).  The factory operates well with a gold recovery rate at 94.7% in average, and producing gold concentrates at an average gold grading of 60 ppm.


Mineral Resource Estimation (NI43-101)

During 2009-2011, ZJF Gold Mine completed a reconnaissance investigation with an independent technical report. Mineral resource estimates completed for the Zhangjiafan Project indicate that resources 12 out of the 31 auriferous veins outlined in the deposit model are classified as Indicated based upon 43-101 guidelines for a total resource of 1,367,200 tonnes grading 2.93 g/t Au for a total of 4.01 tonnes, and, 10 out of the 31 auriferous veins outlined in the deposit model are classified as Inferred for a total resource of 649,900 tonnes grading 2.54 g/t Au for a total of 1.65 tonnes based upon a cut-off grade of 1.00 g/t Au.

Class of Resource
Ore Resource
Au Grade
Au Resource
1,367,200 ton
2.93 g/t
4.01 ton
649,900 ton
2.54 g/t
1.65 ton