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IPFS News Link • China

Chinese Gold Miners Continue To Gobble Up Gold Companies

•, by Lawrence Thomas

The Buyouts: 

Continental Gold Inc. was acquired for C$1.3 billion in early March by Zijin Mining Group Co. The company's asset, the Buriticá Project, is the most advanced underground gold mining operation in Colombia. Buriticá is one of the world's largest high-grade gold projects, with production scheduled to begin in 2020. Mineral reserves are estimated to be 3.7 million ounces of gold with 8.4 g/t of gold (13.7 million tons).

TMAC Resources entered into an agreement in early May with one of China's biggest gold producers, Shandong Gold Mining, to sell the company for C$230 million. TMAC's Hope Bay Property is a high-grade gold district with established Measured and Indicated Mineral Resources totaling approximately 5.17 million ounces of gold at an average grade of 7.4 g/t Au and Inferred Mineral Resources totaling approximately 2.13 million ounces of gold at an average grade of 6.1 g/t Au. However, the Canadian government is currently reviewing the buyout as Shandong Gold Mining Co. Ltd. is a Chinese state-owned enterprise.

Guyana Goldfields was acquired by Zijin Mining Group for C$323 million on June 12th.. Zijin won the bidding war as it valued the company 35% higher than the previously accepted offer from Silvercorp Metals. Guyana Goldfields is a mid-tier gold producer primarily focused on the exploration, development, and operation of gold deposits in Guyana, South America. Its 2019 production guidance was between 145,000 – 160,000 ounces. 

Cardinal Resources was acquired by Shandong Gold Mining for A$300-millio on June 18. Cardinals Namdini Project has a Proved and Probable Ore Reserve of 5.1 Moz.