Majestic Gold Corp. achieved full production at its Songjiagou underground gold mine in China's Shandong province, with operations running at the full output capacity of 300 tonnes of ore per day.
The company said Sept. 11 that ore from the underground mine is about four times the grade of the open pit and is batch-processed in its surface plant to optimize metal recoveries.
The mine will increase the company's low-cost annual gold production and provide opportunities to define new gold resources at depth and along strike, according to President Steve Kenwood.
"The structural nature of the mineralization will simplify mining and will enable us to focus our exploration efforts on high probability targets along the interpreted geological trend," Kenwood said in a statement.
