China's Hanwang (03788): High-grade COPPERHEAD underground gold mine receives approval for drainage project

According to Zhitong Finance App, China's Hanwang (03788) issued an announcement. The Western Australian Government Water Resources and Environmental Supervisory Authority has granted drainage project approval for the high-grade Copperhead underground gold mine in accordance with section 102 (1) (c) of the Western Australian Government's “Environmental Protection Act 1986” (Environmental Protection Act) after full consultation with relevant authorities and local communities.

The approved plan includes the construction of an evaporation tank above the mine's former tailings depot to store and evaporate water extracted from Copperhead's underground gold deposit. The evaporator was designed by Tetra Coffee Tech Engineering, an independent engineering consultancy. The approval allows underground mine water to be discharged at low cost before Copperhead undergoes underground mine development.

The Cygnet gold project is located about 360 km east of Perth in Western Australia. It includes the high-grade Copperhead and Golden Pig underground gold mines and the Corinthia open pit gold mine. The total resource volume that complies with JORC regulations is 2.07 million ounces, and the average gold grade is 2.42 g/ton. The project is 100% owned by Hanwang Gold Co., Ltd. (Hanwang Gold), a subsidiary controlled by the company. Once one of Australia's largest underground gold mines, Copperhead has historically produced around 1.5 million ounces of gold. Copperhead currently has 935,000 ounces of gold resources that meet JORC regulations, and the average grade of gold is 2.35 g/ton.

In response to receiving this project approval, Dr. Qiu Yumin, Executive Director and Vice President of the Company, Managing Director and CEO of Hanwang Gold, said, “This approval marks an important milestone in the development of the high-grade Copperhead underground gold mine project. This approval is particularly important because southern ore bodies not included in current mine production plans are best suited for underground drilling. This low-cost drainage method enables the company to plan underground slope development in advance. It is not only suitable for underground mining, but can also expand and increase the amount of gold resources and reserves through low-cost underground tunnel drilling, creating more value for all shareholders.”

The Company continues to work closely with the competent authorities and other stakeholders to advance other applications, and will promptly inform shareholders of the situation.