Majestic Gold Corp. - Shareholder's Update

About this update from Majestic Gold Corp.

[{"type":"text","content":"Majestic Gold Corp. - Shareholder's UpdateVANCOUVER, BC / ACCESSWIRE / June 14, 2019 / Majestic Gold Corp. (\"Majestic\" or the \"Company\") (TSX.V: MJS, FSE: A0BK1D) is pleased to provide a shareholder's update on its operations at the Songjiagou Gold property (\"Songjiagou\") in conjunction with the Company's Annual General Meeting held on June 13, 2019.Production at Majestic's operation at Songjiagou continues to rely mainly on the open pit that has been in commercial production since May 2011. During 2018, test mining from underground at Songjiagou North contributed higher grade material from test stopes in the upper two levels of what will ultimately be developed into a six-level underground mine.Songjiagou Gold MineThe overall operation of the open pit at Songjiagou is still benefiting from amendments to the mining agreement in early 2017 and by processing higher grade material. Continued optimization of the operation has resulted in achieving even lower total cash costs and all-in sustaining costs that were down to $614 and $712 per ounce respectively for the first six months of fiscal 2019. Gold production for fiscal year 2018 was 29,160 ounces, a 15% increase in production over the prior 2017 fiscal year. This increase was mostly due to an increase in head grade from 0.55 g/t in 2017 to 0.64 g/t in 2018.A significant portion of the past 15 months has been dedicated to work on reducing the angle of the northwestern pit slope, which also included reclamation work on the upper levels of the pit. Extensive work has also been done on road access in and out of the pit and improving the road from the pit to the mill facility in anticipation of increased traffic once increases to mining in the pit are initiated. As a result, mining production in the pit has experienced a decline during this period of work. The Company anticipates that production will ramp up in early fiscal 2020.Songjiagou North UndergroundThe focus of work at the underground operation at Songjiagou during the past year was on development of the upper levels as the ramp advanced toward the deepest of the six levels at -160 metres above sea level. Test mining from the +49 and +9 meter levels began during the first six months of fiscal 2019 at an average rate of 220 tonnes per day with a grade of 2.53 g/t which provided the mill with higher grade material to mix ...

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