China Polymetallic Mining Limited

11/06/2018 | Press release | Distributed by Public on 11/06/2018 03:53

Announcements and Notices - Voluntary Announcement-latest Progress in Geological Explorati ...

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China Polymetallic Mining Limited 中國多金屬礦業有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2133)

VOLUNTARY ANNOUNCEMENT

LATEST PROGRESS IN GEOLOGICAL EXPLORATION

IN EASTERN MINING ZONE OF GPS JV MINE

This is a voluntary announcement made by China Polymetallic Mining Limited (the "Company", together with its subsidiaries, the "Group") to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that the Group is continuing to actively carry out phased geological exploration activities in our operating mines in Myanmar in accordance with the schedule, and is committed to increasing our resources reserves as well as the resources categories. Recently, the Group has made further verification on the resources reserves in the approximately 300 acres area of the eastern mining zone of GPS JV Mine (a lead-zinc mine in which GPS Joint Venture Company Limited (an indirectly non-wholly owned subsidiary of the Group) owns the mining rights and exploration rights).

As at the date of this announcement, a summary of the estimated retained resources reserves of the eastern mining zone of GPS JV Mine in accordance with the Chinese standard is set out as follows:

Resources Reserves Category

Mineral Resources of Lead

(tonne)

Average Grade of Lead

(%)

Measured basic reserve

63,554

4.07

Indicated basic reserve

155,839

4.18

Inferred resource

180,775

4.08

Total

400,168

4.12

The proved retained lead metal resources reserves in this area is increased by around 119% as compared with 182,954 tonnes of lead metal resources as stated in the geological report of this region as at the acquisition of the project, and the resources reserves categories have been increased significantly with the indicated and measured basic reserves increased to 54.82% of the total resources reserves.

In the meantime, the Group will proactively and cautiously continue the development of the GPS JV Mine project in an orderly manner, and continue to enhance the resources reserves and resources categories of the other mining zones of GPS JV Mine. The Group is committed to increasing the existing resources reserves in order to provide a reliable guarantee for the subsequent continuous production of the project.

The Group is primarily engaged in mining, ore processing and the sale of lead-silver concentrates and zinc-silver concentrates. The Board is of the view that with the gradual increase in the resources reserves, the Group's scale of business will be expanded and its overall strength and competitiveness will be enhanced.

The Company will issue further announcement in relation to the GPS JV Mine in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as and when appropriate (if applicable).

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Polymetallic Mining Limited

Lei Dejun

Executive Director

Hong Kong, 6 November 2018

As at the date of this announcement, the Board comprises Mr. Lei Dejun as executive director; Mr. Yin Bo, Mr. Chan Suk Ching and Mr. Zhang Yonghua as non-executive directors; and Mr. Ma Shirong, Mr. Chi Hongji and Mr. Dong Tao as independent non-executive directors.