Majestic Gold is a Toronto-listed (MJS-V), China-based gold producer with an open pit mine near Yantai in Shandong Province, the nation’s largest gold-producing region. Majority control is held by Chinese nationals, who view the company as a vehicle to expand gold production both within and outside China.
The company’s Songjiagou gold mine operates at near break-even in a historically perverse gold market, which appears to have reached is cyclical bottom with a limited downside and considerable upside for established producers like Majestic Gold and its shareholders.
For strategic reasons, which include the desire to capitalize on strong gold prices, Songjiagou went into commercial production in 2012 without the benefit of a full feasibility study that comprised an efficient mine plan. Since then, the company has developed a plan that will optimize the resource grade gold at Songjiagou and resolve ongoing grade control issues.
At present, mining activities at Songjiagou are delivering a grade of 0.42 g/t, which represents about one-third of the mine’s calculated resource grade.
According to Majestic Gold’s President Steven Kenwood: “One can easily imagine the impact of the successful implementation of this mine plan and grade control program on our production costs, not to mention a potentially added profit boost from higher gold prices.”
Songjiagou is a modern truck and shovel mining operation with a conventional mill and a well-engineered tailings disposal system for waste storage. As a good corporate citizen, the company places a strong emphasis on worker safety.
In addition, its relationship with local villages is excellent, as it is committed to provide modern housing alternatives for families impacted by our present and future mining operations.
Majestic Gold’s board of directors is comprised of seasoned veterans of the Canadian and Chinese mineral industries, such as its Chairman, Gengshu Miao, the former President of China Minmetals Corp.