Hunan Gold subsidiary secures license for Tanxi tungsten project

Xinshao Siwei Mining Co., Ltd., a controlled subsidiary of Hunan Gold Corporation, has obtained a new mining license for its Tanxi tungsten mine in Xinshao County. The Ministry of Natural Resources issued the license, which is valid for 20 years, from March 27, 2025, to March 27, 2045.

The mine will extract tungsten, magnetite, and silver using underground methods, with a production scale of 990,000 tons per year across a mining area of 1.3336 square kilometers. Resource reserves for the Tanxi tungsten mine include 19.16 million tons of tungsten ore with 70,411 tons of WO3 resources (average grade 0.367%). Inferred resources also include 242,000 tons of magnetite ore (average grade 21.63% TFe) and 8.44 million tons of associated silver ore, yielding 14,400 kg of silver metal (average grade 1.7 g/t).

As of September 30, 2025, Xinshao Siwei's financials showed total assets of CNY 46.061 million and net assets of CNY 39.0646 million. For the first nine months of 2025, the subsidiary reported zero revenue and a net loss of CNY 0.3289 million.

Hunan Gold stated that acquiring this mining license supports the company's sustainable and high-quality development, but it will not significantly impact current operating performance. Further work, including land acquisition and various project approvals, is required before mining operations commence.