China Nonferrous Gold Share Discussion Threads

[goodgrief] 12/5/2020 13:53

Might be based on past experience of Chinese companies on AIM?

[wanobi] 12/5/2020 13:46

not sure they don't see the opportunity Mj,,, think it's more down to distrust of Chinese run company and the debt levels,,,, but mainly the Chinese element,, oh well, could be their loss :-) fingers crossed, cheers Wan :-)

[mattjos] 12/5/2020 13:37

thanks wanobi, I will continue to plough, what seems to be a solitary furrow for CNG.

People just don't seem to have any idea how large the Pakrut mine is and the scale of the opportunity on the doorstep. This is a very significant undertaking & I have little doubt that there will be Phases III & IV in the years ahead. Once the company has achieved & implemented Phase II, it seems very obvious they will move on to further exploration in the area and little doubt that Resources & LoM will be extended far into the future.

[wanobi] 12/5/2020 13:26

please do continue Mj, great work, many, many thanx, cheers Wan :-)

[mattjos] 12/5/2020 12:07

on the map above, I have marked a red X and an arrow to show direction of view.

Here is satellite view such that you can see Rufigar village and the view down the river with the existing Pakrut mine operations in view.
There is very clear road access along the river valley between the two points

[mattjos] 12/5/2020 12:02

am going to keep putting up info on the area as I always want to know as much as I possibly can about my investments + I think it helps a lot if you can actually visualize as much as possible about mining operations, the geography, topography, neighbouring ore zones etc.

Here is the map from the SRK report to show the small neighbouring village of Rufigar & how the Rufigar & Sulfidnoye mineralized zones fit in:

[mattjos] 12/5/2020 11:37

2019 being the second production year .. they actually achieved slightly more than the target 0.66 Mtpa

2020 being the third production year & they are targeting 0.99 Mtpa (75koz)
2020 being the forth production year & they are targeting 1.32 Mtpa (100koz)

If you read the SRK report, Pages 72-74, you can see how the Designed Capacity is scheduled to run up to the target 1.32 Mtpa.
There is also a breakdown of what plant is built and will now be in operation for Phase I & what additional plant & hours of operation is required for Phase II .. this is what the final round of debt finance is for. Extract here:

[mattjos] 12/5/2020 11:18

27/9/18:

"After completing the infrastructure projects, expected in the fourth quarter of 2018, the Pakrut gold mine is expected to enter full production and capacity will gradually reach 2,000 tons per day.
In 2019, the Pakrut gold mine is expected to achieve an annual production of 660,000 tons and produce 1.3 tons of gold per annum.
Subsequently, the company will fully increase its production capacity, and strive to double its capacity by 2021.
While increasing the production, the company is as making every effort to research and refine the selection and improvement process of the Pakrut gold project by continuously reducing production costs, increasing recovery rates and improving its overall competitiveness.

[fozzie] 11/5/2020 16:28

I have sold a few positions today and will move the money over to my Isa as and when i can so that i can have a few more here. Hopefully the price will stay below 15p for me. A lone sell at 12.6 today and three buys at 14.7

[mattjos] 11/5/2020 15:41

Future upside from Rufigar, Eastern Pakrut & Sulfidnoye (all within 5km of the plant) is ascribed zero value whatsoever but, at current price, most of the company is ascribed negligible value!

[mattjos] 11/5/2020 15:37

At current mid-price and GBPUSD Exchange Rate, you get a helluva lot for a company with market cap of only $67.8m !

[mattjos] 10/5/2020 15:52

For the entirety of 2019 (the second production year) we achieved 0.69 Mtpa

Am therefore very interested to see if production can be ramped according to the mine plan & if so, FY2020 production target (from 990,000t) would be circa 75,000oz, rising to 100,000oz for 2021 (from 1,320,000t)

[mattjos] 10/5/2020 15:43

(This SRK report is on the CNG Website but, it does not appear to be accessible by navigation of the site so, you have to know the exact html code to get there. I have put it in the header for future reference).

From the detailed 150-page SRK report, June 2013 & this is exactly what CNG are doing / following at Pakrut:

"6.4.1 Mining Capacity and Life of Mine

BGRIMM planned the mining schedule based on the geological conditions, such that the mine construction and production are intended to be developed in two stages: Phase I is planned to achieve a capacity of 2000 tpd or 0.66 million tonnes per year (“Mtpa”) and Phase II will have a capacity of 4000 tpd or 1.32 Mtpa.

This includes an initial construction period of 1.5 years, with the first production year achieving 0.4 Mtpa,
the second production year achieving 0.66 Mtpa,
the third production year achieving 0.99 Mtpa
and the fourth production year achieving 1.32 Mtpa.

The designed life of mine (“LOM”) is 19 years.
It is SRK’s opinion that the mining schedule set out in the FS is reasonable, as the mineable reserve used in the design was only 74% of the Measured and Indicated Resource of OBZs 1 and 3.
No mining production has so far been considered for any of the other mineralized Zones; hence, there is great potential to enlarge the resource by additional exploration, both by infill drilling and by exploration in new areas. Therefore it is quite possible that the mining capacity and LOM will be
expanded."

[eke] 10/5/2020 14:28

Looks very impressive from the air - well researched Matt.
I'm wondering if the two near parallel lines of excavation,in the top left of the aerial view, are deliberately cut to form an Avalanche barrier; it also looks like they are intending to continue up the hillside further - very pleased to see that.

[bo doodak] 10/5/2020 14:25

The sheer number of stages shown in that video that needed to be designed and accommodated, and the extreme lengths that humans are willing to go such that gold can be recovered always brings home to me its intrinsically special place in society, and the protection it ultimately offers.

[mattjos] 10/5/2020 14:09

This is most recent photo I can find of Pakrut & it ties in exactly with what you can see in Google Earth

[mattjos] 10/5/2020 13:48

Old, Kryso days, YouTube video which shows how the mine was envisaged and the processing methodology

[mattjos] 10/5/2020 13:22

I've put it in the header as a hotlink so, anyone can click on the image and it will open new browser window. You'll need to use Chrome for it to work.

Yes, very impressive. much bigger operation than most people appreciate

[walter walcarpets] 10/5/2020 12:49

Very impressive looking mine Matt!

[mattjos] 10/5/2020 12:39

This is Pakrut Gold mine as at 18th July 2019:

[bazboa] 09/5/2020 12:56

Although there is high debt hanging over the company. What is the likelihood of a dividend being introduced? With gold so high and likely going higher, output heading towards 100k with phase 2, a dividend wouldn't cost the company much and the debt should still be being paid down.

[mattjos] 07/5/2020 18:17

Boring I know but, another day at over $1,700 slides under the radar here. Happy VE Day to all investors here & let's never forget them

[mattjos] 06/5/2020 12:38

company must be really pinching themselves right now.

$1,700 / oz of gold poured as against $1,400/oz budgeted!

Phase I successfully implemented (50koz) and optimised and now Phase II underway (100koz) and they have the funding for it.

Market is still looking in to the gift-horse's mouth here and seems unable to do the maths even though the mkt cap is steadily rising in front of their eyes & so far up over 90% in the last seven weeks

[walter walcarpets] 06/5/2020 12:21

Moved up to 13.5 on the bid now