China Shen Zhou Provides Update on Xinyi No.1 Fluorite Mine
BEIJING, Feb. 26, 2013 /PRNewswire-FirstCall/ — China Shen Zhou Mining & Resources, Inc. (“China Shen Zhou” or the “Company”) (NYSE AMEX: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today announced that SRK Consulting China (“SRK”) (Beijing office), has completed a JORC-compliant technical report on the fluorite resources and reserves of Xinyi No.1 Mine.
After one year of comprehensive site visits, survey design, data collection, modeling and estimation, the SRK technical report has drawn the following conclusions regarding the fluorite resources, reserves and processing capacity of Xinyi No.1 Mine.
Under the JORC Code, the mineral resources are classified into three categories: Measured, Indicated and Inferred resources. As of June 30, 2012, the estimated fluorite resources for the Xinyi No. 1 Mine are as follows:
Metric Tons CaF2 Grade ----------- ---------- Measured 222,000 83.1% -------- ------- ---- Indicated 401,000 69.7% --------- ------- ---- Inferred 392,000 48.0% -------- ------- ----
Based on the above resources and the current mine production status, SRK rearranged the production plan in accordance with the JORC Code, using 20% as the cutoff CaF2 grade, 70% as the mining recovery rate, and 10% as the mining dilution rate. SRK has concluded that the aggregate estimated reserves in the mid section between the depths of +120m and +256m are as follows:
Mid Section Block Proved Probable Proved + Probable (m) Amount --- ------ Tonnage CaF2 Tonnage CaF2 Tonnage CaF2 (kt) (%) (kt) (%) (kt) (%) --- --- --- --- --- --- +256 4 80 84.9 16 81.8 96 84.4 ---- --- --- ---- --- ---- --- ---- +216 4 76 81.8 12 83.2 87 76.3 ---- --- --- ---- --- ---- --- ---- +176 4 - - 97 80.6 97 80.6 ---- --- --- --- --- ---- --- ---- +136 4 - - 139 59.3 139 59.3 ---- --- --- --- --- ---- --- ---- Total 16 156 83.4 263 69.5 419 73.5 ----- --- --- ---- --- ---- --- ----
“Since we took over Xinyi No.1 Mine in 2011, we have implemented technological upgrades for production and processing as well as safety standards and risk management protocols to enhance stable and continuous operations. SRK’s technical report is an acknowledgement of the work that we have done, and it confirms the quantity and quality of Xinyi No.1 Mine’s fluorite resources. We look forward to efficiently utilizing these resources to increase shareholder value in the long run,” commented Ms. Xiaojing Yu, Chairperson and CEO of China Shen Zhou.
About JORC Code
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (‘the JORC Code’) is a professional code of practice that sets minimum standards for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves. It is endorsed by the Minerals Council of Australia, and the Securities Institute of Australia as a contribution to good practice. The JORC Code has also been adopted by and included in the listing rules of the Hong Kong Exchanges and Clearing Limited.
SRK Consulting is an independent, international consulting practice that provides focused advice and solutions to clients, mainly from earth and water resource industries. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. Formed in 1974, SRK now employs more than 1,500 professionals internationally in over 45 offices on 6 continents.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite, barite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a) fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia province; (b) fluorite and barite extraction and processing in the Wuchuan County of Guizhou province; (c) fluorite and barite extraction and processing in the Yanhe County of Guizhou province; (d) fluorite extraction and processing in Jingde County, Anhui province; (e) zinc/copper/lead processing in Wulatehouqi of Inner Mongolia province; and (f) zinc/copper exploration, mining and processing in Xinjiang province. For more information, please visit http://www.chinaszmg.com/.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminologies such as “will”, “believes”, “expects” or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings at http://www.sec.gov.
SOURCE China Shen Zhou Mining & Resources, Inc.