12 July 2022

Vientiane Capital, Laos – On 11 July 2022, Chifeng Jilong Gold entered into an historical cooperation agreement with Lao Mining Development State Enterprise (LMD). The agreement will enable the parties to focus on exploration and development of mineral resources to develop large-scale future production in Lao PDR.

“This agreement highlights Chifeng’s enduring commitment to growth and the development of the mining sector in Lao PDR,” said Mr Paul Harris, Executive President Chifeng Jilong Gold, General Manager Lane Xang Minerals Limited (LXML).

“We are working with the Lao Government to develop more successful projects like Sepon. Chifeng and LMD will conduct exploration to start another world class mining operation to bring mutual benefit to all our stakeholders, especially the Lao people.”

“Together with LMD and the Lao Government, we are building a solid foundation to grow Chifeng’s significant investment in Lao PDR. We will maintain the same international standards we are renowned for, particularly regarding safety, environment, community development, and developing Lao employees.”

“The agreement encourages exploration of areas with mineral potential, before entering into concession agreements,” said Mr Boungnong Sidavong, Managing Director of Lao Mining Development State Enterprise.”

“LMD is confident that Chifeng’s expertise, evident in the strong performance of the Sepon Gold-Copper Project, will ensure success. Identifying mineral potential is critical, and support from government, technical professionals, and local communities will be essential in developing the mining sector in Lao PDR.”

LXML and the Lao Government have enjoyed a long and successful relationship over almost 30 years. Sepon mine proudly maintains the highest international standards, is consistently rated A+ by the Ministry of Energy and Mines, and is widely considered a role model for other mining companies in Lao PDR.

Chifeng Jilong Gold Mining Company Limited owns a 90 per cent share in Lane Xang Minerals Limited (LXML), which owns and operates the Sepon mine in Savannakhet Province.

Since operations commenced in 2003, LXML Sepon has produced over 1.1 million tons of copper cathode, over 1.5 million ounces of gold doré, and has contributed over US$1.6 billion in direct revenue to the Lao Government through taxes, royalties, and dividends, in addition to hundreds of millions of dollars in indirect benefits through employment, training, community, and local business development.

LXML’s ‘Discovery Deeps East Decline,’ the first modern underground mine in the Lao PDR, which is currently under construction, is expected to extend Sepon’s mine life for at least another ten years to 2033, contributing to employment, economic growth, and sustainable development in host communities.

In 2021, Sepon produced over 5,341 tonnes of copper and 192,988 ounces of gold doré. 2022 production guidance is approximately 224,000 ounces (7 tonnes) of gold doré and 8,000 tonnes of copper cathode.