April 1, 2013 / 6:00 PM / in 5 years

UPDATE 1-Tibet landslide sends China Gold Internat'l shares sharply lower

(Adds latest casualty toll, with hope fading for any survivors)

TORONTO, April 1 (Reuters) - Shares of China Gold International Resources Corp Ltd dropped nearly 16 percent on Monday after a landslide at an exploration area near the company’s Jiama mine in Tibet trapped 83 people.

The landslide hit early Friday morning, the mining company said in a release on Saturday. It said the local government was organizing the rescue effort.

More than 4,500 rescue workers had recovered 36 bodies from the landslide by Monday afternoon, the state-run news agency Xinhua said.

Hope for finding any survivors faded however when rescue operations were later suspended because large cracks were discovered in hills above the site, sparking fears of further landslides, Xinhua said.

The Vancouver-based company, which trades in Toronto and Hong Kong, says it is the “overseas flagship vehicle” of the state-owned China National Gold. China National Gold’s stake was 39.3 percent as of Nov. 20, 2012, according to Thomson Reuters data.

China Gold International said its management team had called off an investor road show to return to China and assist with the rescue operation.

The company has two operating mines. Last week it forecast 2013 production of 26.5 million pounds of copper at Jiama, and 145,000 ounces of gold at its CSH mine in northern China.

Shares were down 15.6 percent at C$3.24 on the Toronto Stock Exchange on Monday morning. (Reporting by Allison Martell and Terril Yue Jones; editing by Matthew Lewis and Andrew Hay)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below