Hengxing Gold Holding Company Limited announced operational updates of gold mountain mine for the second quarter of 2017. For the quarter, Gold Mountain Mine crushed and processed 1,467,471 tonnes of ore. The average head grade is 0.96 g/t. The Yelmand prospect and the Mayituobi prospect achieved stripping volumes of 791,516 cubic meters and 85,537 cubic meters respectively, and mining volumes of 1,282,423 tonnes and 116,567 tonnes respectively in the second quarter of 2017. As for the Kuangou prospect and Jingxi-Balake prospect, the initial stripping volumes in the second quarter of 2017 were 1,453,570 cubic meters and 1,455,162 cubic meters respectively. Owing to the increased initial stripping volumes at these new prospects, the average overall strip ratio for Gold Mountain Mine of 2017 is 5.67 as of 30 June 2017. For the second quarter of 2017, Gold Mountain Mine produced 16,618 ounces (equivalent to approximately 534.3 kg) of gold.

The Production is expected to increase in the second half of the year, mainly due to the enhanced fine particle size which will be processed by the newly installed high-pressure grinding roller, although it will extend the leaching cycle but shall result in higher leaching recovery rate.