REAL ASSET RESEARCH / Danzhai, Guizhou
No. 1 DanzhaiGold tailings investment research
Research mine-supply conditions and validate operating capabilities.
Around Danzhai ore supply, Chenzhou refining and new production lines,
Explain project materials, operating assumptions and subsequent validation separately.
01 / PROJECT BASIS
Check contracts, samples and conditional models separately
The latest materials retain a provisional contracted scope of 1 million tonnes of feedstock, recording actual weighed tonnage consistently at each node. Feedstock moisture changes during stockpiling, transportation and processing; technical dry-equivalent quantities are used only for calculating contained gold.
Final settlement based on actual tonnage confirmed by both parties
Illustration using average moisture from three samples, not actual feedstock input
The premise of a common dry basis for the three results requires verification
Not yet a complete confirmed cost; missing expenses are not treated as zero
The contract screenshot shows Waste Residue Sale and Purchase Contract No. 2026-08-28 between Guizhou Huiyuan Trading Co., Ltd. and Guizhou Danzhai Zhonghuan Mining Resources Co., Ltd., with delivery at the transfer yard in Jinzhong Development Zone, Danzhai County. Party A/B responsibilities, authorization, quantities and fees must be checked against originals and actual performance.
Mine No. 1 no longer uses the previous draft's figures: “700,000 dry tonnes delivered, 800 kilograms of gold, RMB 550/dry tonne costs and RMB 415 million balance.”
Material basis: sponsor-provided “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx,” pages 3, 4, 12, 28, 29 and 30 (34 pages). Materials supplemented through 2026.10.05; operating backfill through 2026.09.29; original conditional model retains GOX version 2026.10.01. Page compiled 2026.10.06. Materials and conditional assumptions have not completed independent verification.
02 / RESOURCE & OPERATING RECORDS
Danzhai mine supply, Danzhai transfer and Chenzhou plant intake
Statistical period: 2026.06.26–2026.09.29. The following data were entered by departments and await review against weighbridge slips and batch evidence. Tonnages at different stages are not added together; webpage updates do not automatically extend the statistical period.
| Stage | Backfilled this period / tonnes | Verification evidence |
|---|---|---|
| Mine-supply dispatch | 36,000 | Mine dispatch weighbridge slips and batches |
| Transfer receipt | 36,000 | Transfer receipts and measured moisture |
| Transfer dispatch | 9,089 | Storage release, rail or other dispatch records |
| Receipt into Chenzhou plant inventory | 7,403 | Plant receipt weighbridge slips, moisture and batch |
Each stage uses the actual weight of moisture-containing material at that point. Inventory, goods in transit and losses require explanation by batch, time, physical inventory and moisture content; differences in tonnage between stages alone cannot establish these. Plant receipts are neither actual feed nor completed processing quantities.
The sponsor PPT's last page states trial production and gold output have begun. Actual feedstock input, fine-gold output, metal plate fineness, sales, collections and gold-in-process records remain outstanding; existing site clips alone do not establish continuous capacity or actual recovery.
Material basis: sponsor-provided “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx,” pages 5, 6, 7, 13, 28 and 34 (34 pages). Materials supplemented through 2026.10.05; operating backfill through 2026.09.29; original conditional model retains GOX version 2026.10.01. Page compiled 2026.10.06. Materials and conditional assumptions have not completed independent verification.
ASSAY RECORDS / Sample material updates
13 testing records retained in groups
The original three report results, 9 supplemental Xinda records and 1 Danzhai warehouse report are listed separately. Sample dates, locations, depths and moisture retain original values; do not combine them into a stockpile average or equate sample gold content with process gold yield.
| Institution / Sample | Gold / g·t⁻¹ | Moisture | Current gold grade baseline |
|---|---|---|---|
| Yongxing Guiyan / Danzhai 1# | 1.04 | 31.82% | Requires verification |
| Yongxing Guiyan / Danzhai 2# | 0.76 | 32.99% | Requires verification |
| Changsha Research Institute of Mining and Metallurgy / Danzhai sample No. 1 | 0.79 | 35.10% | Report specifies dry basis |
| Yongxing Guiyan / Danzhai-warehouse, W20260828-YX-85 | 1.06 | 26.40% | Not specified in the report; requires verification; dated 2026.08.29 |
| Sample location | Depth | Gold / g·t⁻¹ | Moisture |
|---|---|---|---|
| Tailings storage facility bottom | 5 meters | 0.88 | Not provided |
| Tailings dam | Not provided | 1.48 | Not provided |
| Tail end of the tailings storage facility | Not provided | 1.10 | Not provided |
| Tailings storage facility midsection | Not provided | 0.82 | Not provided |
Dates, original reports, sample identifiers and wet/dry bases for the tailings storage facility records above remain outstanding.
| Sample location | Depth | Gold / g·t⁻¹ | Moisture |
|---|---|---|---|
| Danzhai tailings dam midsection | 3 m | 1.16 | 36.41% |
| Danzhai tailings dam head 2# | 5 meters | 1.17 | 31.17% |
| Danzhai tailings dam head 2# | 3 m | 1.42 | 27.66% |
| Danzhai tailings dam head 1# | 4 m | 1.21 | 29.90% |
| Danzhai tailings dam midsection | 4 m | 1.13 | 55.05% |
The wet/dry bases of grades in these five records still require verification. The original three-sample model continues to use (1.04 + 0.76 + 0.79) ÷ 3 and (31.82% + 32.99% + 35.10%) ÷ 3; new results have not been combined. Representative ore volumes, sampling independence and original reports for all samples still require confirmation.
“2.25 grams/dry tonne at depth” is a potential parameter reported by the project sponsor. The institutional reports attached to the PPT do not support this figure; the highest Xinda record is 1.48g/t. The deep-layer scenario must be shown separately from the supplied sample results and cannot serve as a commitment to the grade of the entire stockpile.
Evidence: sponsor-provided Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx, pages 8–11, 28, 29 and 33 (34 pages). Materials supplemented through 2026.10.05; operating entries through 2026.09.29; the original conditional model retains GOX version 2026.10.01. Page compiled 2026.10.06. Materials and conditional assumptions have not completed independent verification.
03 / CAPACITY & VALIDATION
Production-line reference values and actual effective capacity
Historical materials retain trial production of approximately 300 tonnes/day, an existing-line stable-production target of 500 tonnes/day, proposed additional design capacity of 1,500 tonnes/day and nominal total of 2,000 tonnes/day. Corresponding moisture, design measurement bases and effective operating capacity require verification; these figures cannot all be labeled dry tonnes or achieved capacity.
| Project | Reference or conditional value | Scope and limitations |
|---|---|---|
| Existing-line trial-production reference | Approximately 300 tonnes/day | Historical reference; does not replace continuous trial-production records |
| Existing-line stable-production target | 500 tonnes/day | Target value, pending operating validation |
| Proposed additional production line | 1,500 tonnes/day | Design reference; engineering and measurement basis require verification |
| Nominal combined capacity after expansion | 2,000 tonnes/day | Sum of targets and design values, not current actual performance |
| Illustrative processing in feedstock-equivalent tonnes | 1 million tonnes ÷ 2,000 tonnes/day = 500 effective operating days | Purely conditional assumptions, excluding construction, ramp-up, maintenance and feed interruptions |
| Illustrative average capital tied up over a 20-day turnover cycle | 2,000 × 20 × 432 = RMB 17.28 million | Not a confirmed funding gap or investment payback period |
Historical capacity references also follow GOX Section 3; turnover and cycle examples follow GOX Section 5.7. All remain conditional.
Source basis: project-party “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx,” pages 29, 30 and 34 (34 pages). Materials supplemented through 2026.10.05, operating data backfilled through 2026.09.29, original conditional model uses GOX 2026.10.01. Page compiled: 2026.10.06. Materials and conditional assumptions have not been independently verified.
04 / PRODUCTION & CAPITAL
From actual gold output to financial returns
Conditional full-cycle calculations for 1 million wet tonnes.
Calculate gold output, costs and collections along the same funding chain.
Total investment
4,000RMB 10,000 · Total startup investmentTotal revenue
64,000RMB 10,000 · Gold sales revenueTotal cost
45,700RMB 10,000 · Operating costs and one-off expenditureReturn on investment
457.50%Full-cycle net return ÷ total investmentUnder initial assumptions, static full-cycle net return is RMB 183 million; batch size, collection days and ore purchase unit price remain to be entered, and working capital turnover has not been verified.
Total costs do not double-count RMB 7 million in prepaid ore payments; tailings are listed separately only as additional gross profit. Taxes, losses and other expenses are not independently estimated and must be fully entered in total costs; results use only entered costs, with no separate tax estimate.
02 / ASSUMPTIONS
Adjust production and funding assumptions
Stages switch only daily throughput; dry-equivalent ratio, grade and recovery retain current settings. The 300/500-tonne figures are future production scenarios, not achieved capacity.
Daily gold output = wet-feed throughput × dry conversion rate × average dry-basis grade × recovery rate. Gold prices of RMB 900–1,500/gram are user-selected assumptions, not live market quotes. RMB 550/dry tonne retains the prior model's operating assumption, including ore payments, transport, refining and other operating expenses; it must be updated with actual costs and excludes the plant construction, maintenance and upgrade investment below.
How launch funds are allocated
Mine-supply commitment payments initially tie up cash, then offset each batch's material payments; plant equipment, maintenance and replacement are counted as one-time expenditure for this round, without additional depreciation. Any further maintenance expenses should be included in operating costs.
Batches and collections
The three items above are not yet determined; when blank, only static total results are given. The ore unit price must not exceed total operating unit cost to offset ore-securing prepayments correctly. All net cash costs for each batch are paid before it starts; production proceeds continuously by batch, waiting for existing batch collections if cash is insufficient. Collections occur no earlier than batch processing completion; future revenue is not used in advance. Ore-securing payments are offset in order of arrival; specific contractual timing requires verification. Downtime, staged capacity ramp-up and additional financing are not yet simulated.
Additional residual-tailings gross profit · Enter eligible volumes separately
Do not infer residual-tailings quantities from wet or dry feedstock tonnes; benefits must not be counted twice. Unverified additional gross profit is not used to fund early batches and is included in conditional returns only at the end of the full cycle.
03 / CALCULATION DETAILS
Gold output and collections, verifiable at every step
| Production stage | Wet feed / tonnes·day⁻¹ | Dry material / tonnes·day⁻¹ | Gold output / grams·day⁻¹ |
|---|---|---|---|
| Current trial production | 100 | 80 | 64 |
| After the process is finalized | 300 | 240 | 192 |
| After upgrading | 500 | 400 | 320 |
Full-cycle operating accounts
Startup funding ledger
Reinvest collections · Cash turnover verification
Please enter the batch quantity, collection days and mine-material unit price.
| Batch | Wet material/tonnes | Start/day | Collections/day | Operating costs / 10,000 | Offset against ore payments / 10,000 | Cash payment / 10,000 | Gold collections / 10,000 | Cash after payment / 10,000 |
|---|
Daily gold output: 100 × 80% × 1 × 80% = 64 grams.
Full-cycle return rate: (64,000 − 45,700 + 0) ÷ 4,000 = 457.50%.
Gold revenue = 1 million wet tonnes × dry conversion ratio × dry-basis grade × recovery rate × gold price. Total operating cost = full-cycle dry-material quantity × operating cost per unit; plant construction, equipment, maintenance and replacement are then added to total cost. Prepaid mine payments are already included in operating mine payments and affect only payment timing, not additional cost. Working capital is an asset commitment and is not added again to operating expenses.
Updated 2026.10.16: The project sponsor confirmed the production formula and startup-funding breakdown; the scope still assumes 1 million wet tonnes. Processing speed changes only daily output and duration; with the same total volume, grade and recovery rate, full-cycle gold output does not change with speed. This estimate is undiscounted and is not an annualized return; a closed cash cycle does not establish verified distributable profit.
Save this investment estimate
Export current parameters, core results and collection summary. Batch records are presented in summary form.
Current PPT conditional gold-business model · Separate reference (excluding the three additional gross-profit items)
04 / GOLD SCENARIOS
Conditional estimates using consistent raw material, moisture, grade and recovery rate
Conditional calculations use the same 1 million tonnes of raw material and the mean of three original samples. The 10 newly added testing records are listed separately and have not yet entered the baseline model.
Average moisture 33.303333…%; technical conversion, not an additional delivery quantity
Uniform dry-basis grade of 0.863333… grams/dry tonne, assumed recovery rate 85%
Assumed settlement price of RMB 1,000/g, with all estimated gold assumed saleable
Missing expenses not yet deducted; not net profit or distributable cash
| Cost item | Full-cycle entered amount / RMB 10,000 | Allocation / RMB·feedstock tonne⁻¹ |
|---|---|---|
| Ore material purchasing and collection | 12,000 | 120.00 |
| Logistics from ore source to transfer facility | 0 (backfilling stated as Party B's responsibility) | 0.00 |
| Transfer, drying, handling and site | 220 | 2.20 |
| Logistics from transfer site to Chenzhou plant | 15,800 | 158.00 |
| Refining and processing, reagents, energy and labor | 12,000 | 120.00 |
| Testing, downstream disposal and environmental protection | 400 | 4.00 |
| Estimated taxes | 1,800 | 18.00 |
| Equipment depreciation or construction-investment allocation | 300 | 3.00 |
| Intermediary and other project fees | 680 | 6.80 |
| Entered total | 43,200 | 432.00 |
Entered costs total RMB 432 million, equivalent to RMB 432/feedstock tonne over 1 million tonnes, or approximately RMB 647.71/dry tonne over an estimated 666,967 dry tonnes. These use different denominators for the same total; they cannot be added or substituted for actual contract unit prices at each stage. Sales, funding and financing expenses remain to be entered; estimated taxes and duplicate allocations require verification.
Adjust core gold-business assumptions
Fixed 1 million tonnes of raw material, with the mean of three samples as initial parameters. Adjust moisture, uniform dry-basis grade, recovery rate, settlement price and allocated entered costs. Adjustments are conditional calculations only and do not represent test limits or operating forecasts.
1 million tonnes of feedstock × (1 − 33.303333…%) × 0.863333… grams/dry tonne × 85% × RMB 1,000/gram − 1 million tonnes of feedstock × RMB 432/feedstock tonne
Assumes no solid-material loss, uniform dry-basis grades and that all conditional fine gold is saleable. Missing expenses and the three residual-tailings expectations are excluded from this estimate; results must not be directly interpreted as net profit, actual performance or investor distributions.
| Conditional recovery rate | RMB 900/gram | RMB 1,000/gram | RMB 1,100/g |
|---|---|---|---|
| 75% | −4,332.52 | −13.91 | 4,304.70 |
| 85% | 849.81 | 5,744.24 | 10,638.66 |
| 90% | 3,440.98 | 8,623.31 | 13,805.64 |
The table above fixes the original three-sample average and the entered cost of RMB 432 million. Each additional RMB 50/feedstock tonne adds RMB 50 million over the full cycle, reducing the baseline balance to RMB 7.4424 million; recovery-rate and cost interactions have not been simulated. Input adjustments do not rewrite this PPT-sourced table.
Material basis: sponsor-provided “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx,” pages 14–17, 29 and 30 (34 pages). Materials supplemented through 2026.10.05; operating backfill through 2026.09.29; original conditional model retains GOX version 2026.10.01. Page compiled 2026.10.06. Materials and conditional assumptions have not completed independent verification.
05 / CAPITAL & COST
Startup investment and revolving funds accounted for separately
Project sponsor confirmation on 2026.10.16: total investment RMB 40 million, including RMB 7 million in ore-securing prepayments creditable against subsequent ore payments, RMB 12 million for plant construction and equipment, and RMB 5 million for maintenance and upgrades at the Chenzhou, Hunan refining plant; initial available working cash is RMB 16 million. Subsequent operating expenses, including ore payments, transport and refining, are funded by reinvesting gold sales collections.
| Project | Amount / RMB 10,000 | Processing calculations |
|---|---|---|
| Ore-securing prepayment | 700 | Initial cash commitment, later credited against mine payments; no duplicate charges |
| Plant construction and equipment | 1,200 | One-off expenditures for this round, listed separately in costs |
| Chenzhou refinery maintenance and upgrades | 500 | One-off expenditures for this round, listed separately in costs |
| Available working cash | 1,600 | For net cash expenditure on subsequent batches |
| Total startup investment | 4,000 | Denominator for static full-cycle return |
The new production estimate is wet feed × dry conversion rate × dry-basis grade × gold recovery rate, adjustable between 80% and 95%. Batch size, payment-to-collection days and the ore unit price within costs must be entered before verifying cash sufficiency; unknown turnover timing is not treated as confirmed fact.
Historical PPT budget reconciliation · Separate reference
The PPT separately lists RMB 12 million in construction payments and RMB 3 million in cash intermediation budget, totaling RMB 15 million. Their overlap with the entered RMB 3 million depreciation / construction allocation and RMB 6.8 million intermediation and other expenses remains to be confirmed.
| Budget item | Amount / RMB 10,000 | Verification priorities |
|---|---|---|
| Construction payments | 1,200 | Equipment, engineering, acceptance and payment milestones; not directly equivalent to current-period depreciation |
| Cash intermediary budget | 300 | Service scope, receipt conditions, taxes and payment documents |
| Total independent budget | 1,500 | Coverage relationship with RMB 432 million in costs remains unconfirmed |
Until confirmed, do not add RMB 15 million again to entered costs or assume it is fully included. RMB 432 million is not a one-time financing requirement; RMB 57.4424 million is not withdrawable cash. Financing authorization, dedicated rights, actual accounts and monthly cash flows all require formal materials.
Evidence: sponsor-provided Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx, pages 30, 31 and 34 (34 pages). Materials supplemented through 2026.10.05; operating entries through 2026.09.29; the original conditional model retains GOX version 2026.10.01. Page compiled 2026.10.06. Materials and conditional assumptions have not completed independent verification.
PROJECT UPDATE / PPT last-page supplement
Latest progress and planned use of profits for Mine No. 1
Page 34 of the project party's latest PPT states that Mine No. 1 has entered trial production with gold output and plans to close investment entry at the end of October 2026. These are the project party's latest statements and arrangements; actual feed, gold output, sales and receipts await disclosure. Investment availability is subject to formally confirmed information.
| Project-party proposed ratios | Proposed uses | Conditions to implement |
|---|---|---|
| 40% | Investment institution dividend pool, proposed monthly distributions | Based on agreement-determined profit, effective institutional rights and distributable cash, not fixed monthly returns |
| 40% | Initially for a new 1,500-tonne/day production line; after completion, proposed investment in a private placement by a US-listed gold company | Line budgets, construction progress, issuing entity, eligibility for a private placement, price and approvals require specific confirmation |
| 20% | Reserve for subsequent development | Excluded from this period's institutional distributions; use and retention follow formal financial and governance arrangements |
These are proposed uses of Mine No. 1's overall profit after costs. They cannot be treated as an effective dividend commitment; whether non-gold residual-tailings income belongs in the same profit scope still requires agreement confirmation.
“The No. 1 tailings are expected to enter a US-listed gold company at a value of at least 50 million” is the project sponsor's planning statement. The currency, valuation basis, issuing entity, contribution or investment method and transaction terms require verification. It does not currently confirm a completed valuation, listed-company transaction or transfer of interests.
Source basis: project-party “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx,” page 34 (34 pages). Materials supplemented through 2026.10.05, operating data backfilled through 2026.09.29, original conditional model uses GOX 2026.10.01. Page compiled: 2026.10.06. Materials and conditional assumptions have not been independently verified.
06 / EVIDENCE & VERSION
Original sources and next verification steps
| Scope | Current materials | Next step |
|---|---|---|
| Contracts and mine supply | Contract No. 2026-08-28 and screenshots | Review originals, rights, delivery obligations and financing authorization |
| Testing and representativeness | 3 institutional report screenshots, 4 results; 9 supplementary Xinda data entries | Check sampling locations, depths, identifiers, represented quantities and dry/wet basis |
| Logistics and inventory | This period: 36,000 tonnes released from storage, 9,089 tonnes dispatched and 7,403 tonnes received at the plant | Check same-batch weighbridge tickets, waybills, moisture and physical inventory |
| Production and sales | Latest PPT states trial production has yielded gold; site footage provided | Supplement feedstock input, gold output, fineness, gold in process, sales and bank collections |
| Costs and residual-tailings income | RMB 432 million in entered costs; three additional residual-tailings expectations | Complete missing expenses, residual-tailings volumes, compliance procedures and each item's applicable conditions |
| Uses of capital and profit | Proposed 40% / 40% / 20% arrangement on the final page for Mine No. 1 | Confirm the definition of profit after costs, commencement of rights and formal agreements |
Current sources and historical versions
The current content is based on the project party's “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx” (34 pages, materials supplemented through 2026.10.05) and the 2026.10.06 supplement on residual-tailings income calculations. The cover still states the GOX 2026.10.01 model and operating cutoff of 2026.09.29. These dates are retained; model results or backfilled data are not presented as the latest actual performance.
Download older reference PPT (not the current calculation basis) ↓
22 pages / 2026.09.30 V1.1; original source file retained unchanged. The old version is no longer used to calculate No. 1 mine's current gold quantity, costs or balance; current estimates follow the sources and conditions in the latest version.
Evidence: sponsor-provided Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx, pages 28–34 (34 pages). Materials supplemented through 2026.10.05; operating entries through 2026.09.29; the original conditional model retains GOX version 2026.10.01. Page compiled 2026.10.06. Materials and conditional assumptions have not completed independent verification.
After research, continue reviewing operations and disclosures
Record collections of ore, feedstock input and gold output daily, update progress weekly, and account for revenue, costs, inventory and cash flow monthly. These are proposed management arrangements in the PPT; real records will be added as progress occurs.
Material sources: sponsor's latest “Gold Capital Introduction to Gold-Associated Gold Tailings 10.5.pptx” and supplementary residual-tailings income definitions dated 2026.10.06. This page is Wiser Asset's research presentation; project data come from sponsor materials and have not been independently verified. Scenario estimates are not promises of actual profit, collections or investment returns. Financing authorization, project cooperation relationships and investment rights are governed by formal documents.
FACTS / SOURCES / CONTEXT
Page highlights and supporting materials
How should these research materials be read?
First check the asset or project, observation time, sources and measurement basis, then interpret analysis and scenarios. Bitcoin and gold historical assessments are archived by UTC trading day; gold tailings research relies on sponsor materials, retaining labels for proposed parameters and verification items.
Danzhai ore-source and Chenzhou refining research: project evidence, production-line validation, operating scenarios, use of funds and subsequent material verification.