VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2012) -Majestic Gold Corp. (TSX VENTURE:MJS)(FRANKFURT:A0BK1D) ("Majestic" or the "Company") is pleased to announce that it has received a preliminary report of gold production from the Song Jiagou gold mine for its financial quarter ended September 30, 2012 ("Q4 2012"). Song Jiagou gold production by quarter for FY 2012 is detailed in the following table:
| Quarter |
Gold Production (ounces) |
| Q1 2012 |
4,738 |
| Q2 2012 |
4,609 |
| Q3 2012 |
4,891 |
| Q4 2012 |
4,731 |
| FY 2012 Total |
18,969 |
Further details regarding results of operations for the Company and its Chinese subsidiary, Yantai Zhongjia Mining Company Limited ("Zhongjia"), including revenue from gold sales and profitability, will be set out in the Company's annual management discussion and analysis and annual audited consolidated financial statements.
The Company expects gold production to increase during the next nine months toward the Company's goal of 100,000 ounces per year as Zhongjia commences to process the higher grade ore from the main ore body. Over the past four quarters, Zhongjia has processed all mined materials, including material considered waste in the Mine Plan, resulting in a mill head grade lower than the grade projected for the main ore body. This practice will be continued until the planned upgrades to the onsite assay lab have been completed. The lab improvements will include the addition of fire assay equipment and the expansion of lab facilities to allow more samples to be processed on a daily basis, resulting in more detailed and timelier information for the mine operator. These upgrades will allow the Company to implement improved grade control, resulting in higher head grades for ore delivered to the mill.
"We are very pleased with the results to date," stated Mr. Rod Husband, CEO of Majestic Gold Corp. "Annualized gold production of almost 19,000 ounces is consistent with our expectations based on our Mine Plan and indicates steady progress toward our production goal of 100,000 ounces per year when we reach the higher grade portion of the ore body."
The geological and technical information contained in this news release has been reviewed and approved by Rod Husband, P.Geo., who is a qualified person under the definitions established by National Instrument 43-101.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a Vancouver, BC based company engaged in commercial gold production at the Song Jiagou gold mine in Yantai, China. Majestic Gold has forecast an average production for the life of mine at a rate in excess of 100,000 ounces of gold per year. (Wardrop Engineering Inc. NI 43-101 Technical Report dated February 2011). Pursuant to the terms of the Zhongjia joint venture, Majestic is entitled to 70.5% of net profits from gold sales. Additional information on the Company and its projects is available on SEDAR at www.sedar.com and on the Company's website at www.majesticgold.net.
On Behalf of the Board of Directors
MAJESTIC GOLD CORP.
Rod Husband, P.Geo, President