China Gold International Resources Corp. Ltd. has shifted from an internal evaluation to an independent, feasibility-level technical assessment for the underground transition at its CSH Gold Mine in Inner Mongolia, China.

The company previously advanced internal feasibility studies for an underground extension as it managed open-pit slope conditions and approached the later stage of the mine's operating life. The new mandate, awarded to SRK Consulting, marks a shift to an independent NI 43-101 feasibility-level assessment.

As the existing CSH open-pit operation approaches the later stage of its mine life, China Gold is advancing its planned transition to underground mining. Block caving has been selected as the principal mining method for extracting mineral resources located beneath and adjacent to the open pit.

“As the CSH Mine open-pit operation approaches the later stage of its mine life, advancing the underground potential of CSH Mine has become an important priority for the Company. Early underground development activities have commenced based on the engineering and development work completed under the applicable domestic framework. At the same time, given the scale, technical complexity and long-term importance of the proposed block-caving operation, we believe it is essential to establish an independent technical and economic basis for the project under internationally recognized reporting standards.” — Chenguang Hou, Chairman and Chief Executive Officer

SRK’s assignment will proceed in two distinct phases. Phase I comprises a comprehensive gap analysis of existing geological, engineering, and technical information. Following that review, Phase II will involve independently undertaking the technical and economic assessments required to support a feasibility-level study and prepare a National Instrument 43-101 technical report.

Concurrently, contractors have mobilized to site for early underground development work based on a completed domestic Chinese Preliminary Design. The company noted that these domestic activities are separate from the independent SRK evaluation and do not constitute an NI 43-101 compliant reserve, mine life, or economic outcome.

“SRK will independently assess the project under NI 43-101 and applicable CIM standards. Particular emphasis will be placed on rock mechanics, geotechnical and hydrogeological studies, which are critical to the successful design and operation of a block-caving mine.” — Chenguang Hou, Chairman and Chief Executive Officer

Engineering work and SRK's upcoming evaluations will establish whether existing mineral resources can be converted into compliant mineral reserves under international reporting standards as the operation progresses its transition from open-pit extraction.

Read the full announcement: China Gold International Resources Engages SRK to Advance Independent NI 43-101 Feasibility Study for CSH Mine Underground Development Early Underground Development Works Underway as CSH Mine Advances Transition from Open-Pit to Block-Caving Mining