Majestic Gold Corp. has selected mineral-rich China for its gold mining projects, with its flagship venture launched in the Songjiagou Mine on the Jiaodong Peninsula, Shandong Province.
President and CEO Steve Kenwood said: “China is invaluable. There’s a lot of different mines and operations and I think Asian markets provide a much better evaluation for resource projects.”
The Vancouver-based company received its official permit to operate theSongjiagou Project five years ago and the mine was officially commissioned in May 2011.
Majestic Gold, which holds a 75 percent interest in this joint venture, produced around 19,630 ounces of gold from the mine last year. It has also implemented a grade control program that determines the feasibility of production and secures a site for the long-term disposal of waste rock.
China is currently the world’s leading producer of gold, followed by Australia and the United States, with Shandong Province producing about a quarter of China’s annual gold production.
Kenwood said: “In a few years, we hope to make acquisitions or partner up with different groups to expand our production base. We want to become one of the larger producers in China and that’s why we’re leaning on our expertise to accommodate more acquisitions.”
He added that the company was also looking into other projects in Canada and in Southeast Asia.