CNMC Goldmine Faces Underground Project Delay and Fatality Amidst Strong Q3 2025 Production Spend

Key Points for Investors

• Q3 2025 operating cash use was US\$12.93 million, slightly below projections due to payment timing.
• Active exploration and drilling at Ulu Sokor and Kelgold concessions; 27 drillholes completed, totaling over 5,000 meters.
• Projected Q4 2025 production spend rises to US\$15.66 million, with a strategic focus on deeper exploration at Sokor.
• Major operational incident: Water issues and a fatality have delayed Sokor’s underground mining facility beyond 2025.
• Ongoing investigation into fatality; company asserts commitment to safety and regulatory compliance.

Full Article

CNMC Goldmine Holdings Limited has released its additional disclosure for the third quarter ended 30 September 2025, revealing both operational progress and significant challenges that could impact investor sentiment and the company’s share price.

Q3 2025 Cash Usage and Operational Activity

In Q3 2025, CNMC Goldmine deployed US\$12.93 million in cash for production activities, slightly below the projected US\$13.88 million. The variance was attributed primarily to payment timing. The bulk of spending went towards diesel and production materials (US\$4.40 million), royalty and tribute fees (US\$4.13 million), and general working capital (US\$2.73 million). Other notable outlays included exploration and evaluation activities (US\$0.68 million), plant and machinery (US\$0.25 million), equipment rental (US\$0.59 million), and upkeep of vehicles (US\$0.15 million).

Exploration efforts were robust: The group drilled 27 holes totaling 5,008 meters at the Ulu Sokor concession. At Manson’s Lode, seven of eight drillholes intersected with gold ore bodies, while at the New Found and Rainbow prospects, promising intersections with gold and base metals were recorded. In Kelgold, 62 trench and 11 outcrop samples were collected for analysis, but no exploration was conducted at CNMC Pulai during this period.

Q4 2025 Spending and Strategic Shifts

Looking ahead, CNMC forecasts a significant uptick in cash requirements for Q4 2025, projecting US\$15.66 million in outlays. This includes greater allocations for exploration (US\$0.87 million), plant and machinery (US\$0.80 million), diesel and production materials (US\$5.08 million), royalties (US\$5.04 million), and equipment rental (US\$0.75 million).

The company’s exploration focus remains on the high-potential Ulu Sokor concession, with deeper drilling at the New Found Deposit to unlock resources up to 800 meters below surface, and continued drilling at Rainbow Prospect. Fifteen new drillholes totaling 2,940 meters are planned, with the geology team poised to adjust plans based on ongoing assay results.

Project Delay and Fatality: Major Price-Sensitive Events

The most critical—and potentially price-sensitive—news is the delay in the completion of the underground mining facility at Sokor’s Rixen gold deposit. Construction progress has been hampered by water accumulation issues. More seriously, a recent unrelated incident at the supporting shaft resulted in the tragic fatality of a staff member. The company is cooperating with authorities in the ensuing investigation and has extended support to the bereaved family.

Management has confirmed that these events will delay project completion beyond 2025, a development previously disclosed but now compounded by the fatality and technical difficulties. Investors should be aware that this could impact the company’s production timeline, revenue streams, and overall valuation.

CNMC has reiterated its commitment to the highest safety standards and promises further updates as the situation develops.

Conclusion: What Investors Should Watch

Shareholders must closely monitor the progress of the Sokor underground project and the company’s response to operational and safety challenges. The delay and fatality are significant events that could exert downward pressure on the share price, especially if further delays or regulatory scrutiny emerge.

At the same time, ongoing exploration success and increased investment in high-potential zones may provide upside if resource expansion translates into future production growth.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a qualified financial adviser before making investment decisions. The author and publisher accept no liability for any actions taken based on this article.

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