A total of 18 gold mineralization domains were defined, where two sub-zones were named as NE zone and SW zone, covering NE open pit and SW open pit, respectively. NE zone accounts for 78% of the total mineral resources of the CSH gold deposit, where SW zone occupies 22%only. Gold mineralization domain N1: The largest size of gold domain at the cross section of explorationline8,800 to 11,100 was defined in the CSH deposit area, with an irregular tabular shape, and controlled by bedding-like shear structures. The mineralised domain is totally hosted in the second Member of Bilute Formation, Mesoproterozoic Bayan Obo Group, with most parts outcropped on the surface. It strikes NE55°to 65° overall, plunging NW at a dip of 70 – 85°. As shown in Figure 7-5, a total of 645 diamond drill holes on a grid of 50–100 m (strike) by 50–100 m (plunge) have delineated the domain for a length of 2,346malong the strike and a plunge extension of 1,100 – 1,540 m, with a horizontal thickness of 70 – 400m. The elevation of the domain ranges from 1,677 m to 230 m ASL. The domain N1, accounting for about 76.5%ofthe total mineral resources of the CSH Gold Deposit, is dominated by gold mineralization grading0.57g/t Au. Gold mineralization domain W1: The second largest size of gold domain at the cross section of exploration line 6,700 to 9,100 was defined in the CSH gold deposit area, with a strata-bound shape, and controlled by bedding shear structures. The mineralised domain is totally hosted in th ........

The mine construction began in March 2004, and the trial production at a capacity of 20,000 tonnes per day (“tpd”) or 6.6 million tonnes per annum (“Mtpa”) commenced in July 2007, and the capacity was then expanded by adding new crushing facilities in September 2009 reaching 30,000 tpd or 9.9 Mtpa in 2010. The Company completed Phase II expansion construction and entered into commercial production in the fourth quarter of 2014. Since the commencement of Phase II commercial production, CSH has increased its processing capacity to 60,000 tpd or 19.8 Mtpa. As part of the Phase II expansion, a second heap leach pad was created with a valley between the initial Phase I heap leach pad and the newly created Phase II heap leach pad. In July 2019, CSH updated its mine plan based on a result of latest ultimate limit optimization, in which the production rate was reduced to 40,000 t/d or 13.2 Mtpa.

The CSH open pit is currently mined by the Contractor China Railway 19th Bureau. The mining is carried out on 6 m high benches, and the main mobile equipment fleet includes hydraulic DTH drills with 165mm of hole diameter, hydraulic backhoes with a bucket capacity of 5 m3, and 50 t and 100 t payload dump trucks.

The mine has formed two open pits in the northeast and southwest, respectively. The northeast open pit has a dimension of length of 1,860 m and width of 1,355 m, with the highest elevation of 1,696 m ASL and lowest elevation of 1,180 m ASL, and a closed level ele ........

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