In line with our previous guidance, China Explorations Limited´s production in the June quarter was expected to be impacted by rehabilitation actions at the Southeast site, In the Shandong project. These actions as along with other astute managerial decisions helped the company remain on track to achieve our short-term target of a run rate of approximately 6,000 equivalent ounces per month.
In addition to the important results in production, China Explorations Limited cash costs and cash expenditure are expected to be lower than the guidance published on November 28 of 2013. These figures include all operating costs as well as sustaining and project capital, due to favorable exchange rate movements against the Chinese Yuan, relative to those provided in the guidance.
China Explorations Limited Chief Executive Officer, Mr. Liu Wei, said: "We are pleased with the improved production and good cost control as well as the progress we are making in terms of delivering the various projects, which will make a significant difference to the future profile of China Explorations. We are well positioned to installing the company´s production closer to historical levels. The rehabilitation at Shandong of the steel infrastructure at the Southeastern Shaft as well as the expansion of the Carbon in Leach (CIL) plant have been completed and were on track to full production build-up in early May 2014."
Despite the slower than expected build-up, the commissioning at the Yunnan Project is progressing well and the exploratory mines are on track to accurately delineate the site´s veins. The CIL Plant expansion for this project is also on track for completion and build-up to full throughput by the end of August 2015. Once the Yunnan Project is put into full operation, the production figures for China Exploration Limited are expected to consistently grow for the next years.