Majestic Provides Update for Songjiagou Open Pit Gold Mine

VANCOUVER, BC / ACCESSWIRE / September 25, 2019 / Majestic Gold Corp. (“Majestic” or the “Company”) (TSXV:MJS)(FSE:A0BK1D) is pleased to provide an update on open pit operations at its Songjiagou Gold Mine (“Songjiagou”) in Shandong Province, China.

Through the end of the third quarter of 2019, the Songjiagou operation produced 22,122 ounces of gold. The third quarter results were achieved despite a 20% reduction in overall mined tonnage owing to several factors including a focus on completing development of the high grade Songjiagou underground mine, continued improvement on the roadways out of the open pit, and remediation efforts on the pit wall failure in the southwest part of the Songjiagou pit.

According to Majestic President, Stephen Kenwood, “The Songjiagou underground mine will support and enhance existing open pit production given the fact it averages approximately four times the grade of the open pit. The supplemental production will also have a significant impact on reducing production costs and meeting our goal of increasing gold output in the future.”

At the present time, the main activity in the open pit is coming from the +69, +57, and +45 metre benches. The +33 metre bench is also beginning to be developed and, based on modeling, a number of higher grade zones should be encountered on this bench as well as on benches below it.

Engineering staff continually update the bench block model which is based on exploration data and data gathered on an ongoing basis from blasthole sampling. Based on the current block model, the inventory of material above the +21 metre level using a 0.2 g/t gold cut-off is as follows:

 

Unit

+69 m

+57 m

+45 m

+33 m

Total

Ore

t

102,086

1,133,799

2,582,882

3,149,555

6,968,322

Gold Grade

g/t

0.68

0.46

0.89

1.09

0.91

Waste

t

270,809

1,565,464

2,155,783

1,352,425

5,344,481

Strip Ratio

t/t

2.65

1.38

0.83

0.43

0.77

Total Tonnage

t

372,895

2,699,263

4,738,665

4,501,980

12,312,803

The Company is awaiting government approval for its application to increase production at the open pit operation. It is anticipated that this approval will be granted in early fiscal 2020 and will provide for a significant increase in production capacity.

At the present time there are three processing plants at the Songjiagou Gold Mine: a 2,000 tpd facility that is subject to a purchase agreement with a third party; a 6,000 tpd plant; and a 1,200 tpd facility. In total, the aggregate milling capacity at Songjiagou is 9,200 tpd day, providing the company with considerable room to expand production in the future.

The Songjiagou Gold Mine is located less than 50 km from the port of Yantai which hosts a railway station and airport. The project has good road access and is 8.0 km north of the Provincial Road 304, 11 km south of State Highway 309 and 1.5 km east of a county road which connects the mine with the nearby cities. Electrical power for the mine is supplied by a local 10 kV electrical line and standby 120 kW diesel generators while water for industrial and domestic use is available within 2.0 km of the mine site.

Stephen Kenwood, P. Geo., a Director of Majestic, is the Qualified Person within the context of National Instrument 43-101 and has read and approved this news release.

About Majestic Gold

Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company’s website at www.majesticgold.com.

For further information, please contact:

Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: info@majesticgold.com
Website: www.majesticgold.com

Cautionary Notes

Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward‐looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management’s expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.

In some cases, you can identify forward‐looking statements by terminology such as “may”, “should”, “expects”, “plans, “anticipates”, believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward‐looking statements.

While these forward‐looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward‐looking statements to conform these statements to actual results.

SOURCE: Majestic Gold Corp.

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