China

Songjiagou Operation

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Categories

Overview

Mine TypeOpen Pit & Underground
Commodities
  • Gold
Mining Method
  • Truck & Shovel / Loader
  • Shrinkage stoping
  • Cut & Fill
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ShapshotThe Songjiagou Operations consists of SJG Open-Pit Mine, SJG Underground Mine and the processing plant to produce gold concentrate.

Open pit expansion commenced in fiscal 2022 Q2. The Majestic expects to complete the expansion work on the third bench in the fourth quarter of 2023 and the fourth bench in the third quarter of 2024.

In March 2021, the Shandong Provincial Government mandated the immediate closure of all non-coal operations in the province, which included the Songjiagou Gold Mines. On April 29, 2021, and August 5, 2021, the Majestic obtained the governmental approvals to resume mining operations at the Songjiagou Underground Mine and SJG Open-Pit Mine respectively, following successful completion of the cautionary safety inspections.
Related AssetsSongjiagou North Mine, Songjiagou(SJG) Mine

Owners

SourceSource
CompanyInterestOwnership
Yantai Dahedong Processing Co. Ltd. (operator) 25 % Indirect
Majestic Gold Corp. 75 % Indirect
Ownership Tree
Majestic holds its 75% interest in SJG Project through its 94% owned subsidiary SINOGOLD Resources Holdings Group Co. Ltd. (“SINOGOLD”) indirectly. The remaining 25% of SJG Project is held by Yantai Dahedong Processing Co. Ltd.

Deposit type

  • Vein / narrow vein
  • Mesothermal
  • Breccia pipe / Stockwork

Summary:

Deposit Types Gold mineralisation of the SJG (Songjiagou) Project is hosted within the pyritic-sericitic conglomerate of the Linsishan Formation from Laiyang Group of Cretaceous-age. Gold enrichment occurs as veins, as well as in disseminated and stockwork distributions. The SJG vein-type mineralisation could be appropriately described as mesothermal genesis. The disseminated and stockwork types of mineralisation have some aspects of epithermal mineralisation but are both spatially and genetically associated with the vein-type; as such it can be considered a variant of that type. The SJG Project’s conglomerate type gold deposit is believed to be associated with mesothermal filling activities and followed by alterations and metasomatism. Property geology The SJG Project is situated in the eastern part of the Jiaobei Terrane and on the northeast margin of the Jiaolai Basin and is regarded as part of the Muping-Rushan gold belt. Paleoproterozoic metamorphic rocks of the Jingshan Group are mainly distributed to the north of the SJG Project area near Tanjia village, and are comprised of biotite granulite, graphite-bearing gneiss, leucogranite, and marble. These strata generally dip southeast with angles varying from 15° to 50°. Cretaceous-age rocks are predominately represented by the Linsishan Formation, part of the Laiyang Group and comprised of conglomerate and sandstone. The Linsishan Formation in the SJG Project area has an overall northeast strike and dips southeast with an angle of 20° to 40°. The formation is divisible into two conformably contacted sections according to the clast size. The first section of Linsishan Formation consists of relatively larger clasts with grain sizes of about 3 centimetres (‘‘cm’’) –20 cm and is predominately composed of monzonitic granite and quartz; marble, gneiss, schist and granulite are occasionally visible in this section. The second section is characterised by finer grained and rounded clasts made of sandstone and siltstone. The gold mineralisation is mainly hosted within the conglomerate in first section of the Laiyang Group Linsishan Formation. Mineralised zones The SJG Project’s gold mineralised zones are concentrated within an area of approximately 1.0 km2 which is covered by the aggregate areas of Yantai Zhongjia’s currently valid mining licences. The defined mineralised zones are bounded within the Laiyang Group Linsishan Formation conglomerate without distinct boundaries, and a number of gold enriched bodies present as gold veins occurring within the lithological zone characterised by Linsishan Formation conglomerate. The rock layer consists of Paleoproterozoic Jingshan Group metamorphic rocks, Mesozoic Cretaceous Laiyang Group sediments and Cenozoic quaternary system and is dominated by Laiyang Group. The local structure features two major fault zones, the northeast striking Yazi Fault Zone and the northwest oriented Tanjia Fault Zone. Main magmatic activity is represented by monzonite granite. The highest grades of gold mineralisation are confined to relatively narrow although vertically and horizontally persistent zones. Gold mineralisation is associated with sulphides. Mineralised rocks present in grained, in-filling, clastic, or brecciated textures. The SJG Project’s gold mineralised zones are concentrated within an area of approximately 1.0 km2 which is covered by the aggregate areas of Yantai Zhongjia’s currently valid mining licences. Gold mineralisation is associated with sulphides that include electrum, pyrite, chalcopyrite, galena, sphalerite, and bornite. Gold is most abundantly associated with electrum and pyrite. The secondary metallic minerals include sphalerite, galena, chalcopyrite, magnetite, and limonite. The associated gangue minerals are represented by feldspar, quartz, muscovite, calcite, and clay minerals. Sulphur (‘‘S’’) grades vary from 1.1% to 7.8% according to tests done on 13 samples by No. 3 Geological Institute, with an average grade of 3.7%. Silver (‘‘Ag’’) grades have been analysed within a range of 0.5 g/t and 8.5 g/t Ag. The harmful element arsenic (‘‘As’’) was found to occur with grades ranging from 0.0040% to 0.0302% As. The average grade of arsenic is about 0.0012% As. As the content of arsenic is far lower than the required standard of 0.5% in the content of the gold product as stipulated in the sales contract, SRK does not consider this could materially affect the saleability of the gold produced at the mines. Furthermore, in view of the graded of arsenic, SRK do not consider that it would be likely to adversely impact the environment. Based on observation as well as on the phase analysis results, the types of gold mineralised zones present at the SJG Project include oxidised, mixed, and primary sulphide; primary sulphide or accounts for the largest proportion. The mineralised rocks present in grained, in-filling, clastic, or brecciated textures.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

The low gold production in FY2021 was due to the suspension of mining operations in February 2021, with operations resuming to full capacity at the SJG Open-Pit Mine in August 2021 and full capacity at the SJG Underground Mine in December 2021.
CommodityProductUnits20222021202020192018
Gold Concentrate kt  ....  Subscribe  ....  Subscribe  ....  Subscribe
Gold Metal in concentrate koz  ....  Subscribe  ....  Subscribe  ....  Subscribe2829

Operational metrics

Metrics20222021202020192018
Daily milling capacity  ....  Subscribe  ....  Subscribe7,400 t
Ore tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe1,504,425 t1,420,620 t
Waste OP  ....  Subscribe  ....  Subscribe  ....  Subscribe
Total tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe
Tonnes milled  ....  Subscribe  ....  Subscribe  ....  Subscribe1,316,343 t1,471,565 t

Production Costs

CommodityUnits20222021202020192018
Total cash costs (sold) Gold USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 613 / oz   651 / oz  
All-in sustaining costs (sold) Gold USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 752 / oz   774 / oz  

Financials

Units20222021202020192018
Sustaining costs M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 0.6   0.2  
Capital expenditures M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 1.5   14.5  
Revenue M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 32.4   33.8  
Operating Income M USD  ....  Subscribe  ....  Subscribe
Gross profit M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 12.6   13  
Pre-tax Income M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 23.8   10.9  
After-tax Income M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 7.4   6.9  
EBITDA M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 14.1   14.2  
Operating Cash Flow M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 8.1   9.8  

Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Dec 31, 2022
....................... Subscription required ....................... Subscription required Subscription required Dec 31, 2022
....................... Subscription required ....................... Subscription required Subscription required Dec 31, 2022

Aerial view:

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