Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Health and Safety

Social Achievements

• Donated over RMB 1,000,000 to water supply and road construction for the local village from 2008 to 2010

Climate Goals & Targets

Environmental Challenges

• Significant land disturbance, and site rehabilitation and site closure requirements
• Poor waste rock dump and TSF management
• Poor water management
• Insufficient data to support the design of the overall slope and the bench face angle
• Optimized pit limits are outside the borders of the current mining license
• Actual mining capacity is beyond the permitted capacity
• Daily production fluctuates significantly
• Existing waste dump associated with small-scale production is not currently in use
• Current waste dump is not large enough to accommodate all the waste from the ultimate pit
• Mine is adjacent to two villages
• Inadequate capacity of the current tailings storage facility
• Village relocation and resettlement may have great impact on production schedule

Mitigation Strategies

• Enhance slope stability monitoring and conduct a rock mechanics study
• Apply for a mining license with larger scope and capacity
• Appoint a qualified design institute to prepare a feasibility study for large-scale production
• Optimize a detailed schedule during the feasibility study stage
• Standardize sampling, optimize assay methods, and improve grade control methods
• Take all necessary shielding measures to protect the workshop, equipment and residential houses near the blasting site
• Conducting an optimization study and design of tailings stack pattern; location selection, land acquisition, engineering design and construction of associated facilities for alternative TSF options
• Conduct detailed land rehabilitation study during feasibility study stage
• Setting up a rehabilitation department to implement the plan and collect and allocate the funds
• Improve organizational structure, introduce geology, mining, surveying and processing professionals and technical personnel, strengthen production management and technical services

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101, CIM

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Health and Safety

Environmental Achievements

• Land reclamation program implemented, including planting vegetation on open pit walls.
• Tailings storage facility expanded to support 10 years of production.
• Waste rock reused for construction materials or sold off-site.

Social Achievements

• Relocation of residents impacted by mining with proper compensation and housing.
• Job opportunities provided to local residents.
• Good relationships maintained with local communities.

Governance Achievements

• Compliance with Chinese national environmental and safety regulations.

Climate Goals & Targets

Environmental Challenges

• Steep slopes in open pit requiring mitigation measures.
• Potential for groundwater ingress.
• Dust emission from mining and processing operations.
• High failure rate for analyses of standard CDN-GS15A (58% for drill program and 78% for trench program).

Mitigation Strategies

• Slope cutbacks planned to prevent slope failures.
• Water management practices implemented, including supernatant liquid returning system.
• Dust suppression measures such as water sprinkling.
• Repeated sampling and assaying, using duplicates and standard samples to monitor procedures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101, CIM Definition Standards

Environmental Metrics

ESG Focus Areas

• Water Management
• Waste Rock and Tailings Management
• Occupational Health and Safety
• Site Closure Planning and Rehabilitation
• Social Aspects

Environmental Achievements

• Mine water from the DGZ Mine undergoes treatment before being discharged
• Most waste rock generated by DGZ Mine is reused
• Tailings from the DGZ Processing Plant are used for underground backfill, with the remainder handled by a third-party company

Social Achievements

• Public participation during EIA preparation showed no objections to the project
• Well-developed safety management system in place at DGZ Mine

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Absence of a tailings storage facility (TSF) at DGZ Processing Plant
• Potential for water pollution from untreated wastewater
• Potential impacts to flora and fauna habitat

Mitigation Strategies

• Tailings utilisation contracts with third-party companies
• Upgrade of mine water treatment facility at DGZ Mine
• Implementation of sustainable water supply management plan
• Ecological management measures including soil erosion control and land reclamation
• Hazardous waste storage facility with clear warning signs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: NI 43-101, CIM Definition Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed