Majestic Gold Corp. Completes Village Relocation Construction
VANCOUVER, September 18, 2019 - Majestic Gold Corp. ("Majestic" or the "Company") (TSXV:MJS) (FSE:A0BK1D) is pleased to announce the completion of construction work on six residential apartment buildings in proximity to the company's Songjiagou gold mining operation in Shandong Province, China.
Residents of the nearby villages of Songjiagou and Fayunkang have unanimously agreed to take up residence in the new condominiums which are located approximately two kilometers from the mine site. The residential complex is comprised of six buildings with sufficient capacity for up to 280 families who, after relinquishing their village leases, will retain access to their farmland in return for a 75-year condominium lease.
A third village was relocated several years ago to facilitate construction of the tailings disposal site located south of the Company's Songjiagou mining operation.
The relocation plan became necessary when the size of the Songjiagou mine license was increased in 2015 by almost 75% from 0.342 to 0.594 km² to facilitate ongoing operations and the potential expansion of surface mining activities in the future.
"This is a milestone project for the Company and the two communities adjoining our Songjiagou mine site," said Majestic Gold president, Steve Kenwood. "In addition to meeting our corporate responsibilities to these two villages, we have secured our future as a significant gold producer and contributor to the local economy."
The construction program was completed under budget at $US14.4 million and includes six five-story buildings aggregating 19,944 square metres in total. Each residential building includes four living units on each level averaging approximately 80 square metres each.
The modern five-story frame buildings are constructed with load-bearing beams and columns made from reinforced concrete, with precast hollow concrete and other lightweight materials utilized for partition walls.
The fully-serviced buildings include appliances, central heating, recreation rooms, child playgrounds and other modern amenities including elevators, air conditioning and parking lots. Each household is equipped with a garage on the ground floor of the residential building in addition to a 10 square metre storage room. All construction was completed in accordance with national standards and approved following inspection by competent government authorities.
The two villages are situated in close proximity to the active open pit at Songjiagou and are currently home to about 240 families who are sustained by agriculture, primarily apple orchards. In the past, Shandong Province has accounted for approximately 22% of Chinese apple production, ranking it the second largest producer in the country. In addition to subsistence agriculture, some of the villagers work under contract at the Songjiagou gold mine.
Officials from the Company have maintained a close relationship with representatives from the "New Village Relocation Construction Program," a government program that has encouraged the upgrading and modernization of housing for local residents. In the past, villagers were generally housed in self-built accommodation constructed from brick and stone tiles, with yard space for livestock and other domestically-grown food sources.
For additional information including digital images of the condominium complex, please visit our website at www.Majesticgold.com.
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
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SOURCE: Majestic Gold Corp.