Tuesday, January 29, 2013
CNMC: Company announced its 81%-owned subsidiary CMNM Mining Group has entered into a Technical Services and Co-operation Agreement for mine development and technology consultation on gold production expansion with China Gold Guizhou Jinxing Gold Mining Industry Co., Ltd, a subsidiary of China National Gold Group Corporation (China Gold), on 26 January 2013. China Gold is China’s largest gold producer and a state-owned enterprise. China Gold specialises in the extraction of non-ferrous metals which include, amongst others, gold, silver and copper, and covers operation from the upstream exloration to downstream product refining. China Gold will assign a qualified and experienced mine superintendent, mining engineers, production engineers specialising in gold heap leaching operation, as well as mine laboratory technicians to CNMC’s Sokor Gold Project located in Kelantan State of Malaysia. The China Gold team, with its wealth of experience, will add-on and complement CNMC’s current on-site production team to manage, plan, design, construct, and oversee CNMC’s gold production expansion program for a 1-year period beginning from 1 Mar 2013 to 28 Feb 2014. China Gold's mgmt stated that CNMC Goldmine’s Sokor project has immense potential both in terms of gold production as well as its resources and reserves, and they are confident that with the addition of their technical inputs, they are able to uplift the total output beyond CNMC’s current plan. Additionally, China Gold also hope to be able to work with CNMC beyond the current Sokor project. Street estimates CNMC with a TP of $0.80, a potential upside of 72%.