Afcan adds resources at Tanjianshan deposits

A new resource estimate for the Jinlonggou and Qinlongtan gold deposits, at the Tanjianshan gold property in Qinghai province, western China, shows a significant increase in measured and indicated resources in advance of a final feasibility study scheduled for January.

Consultants for Afcan Mining (AFK-T) estimated a 5.3-million-tonne measured and indicated resource on the primary zone of the Jinlonggou deposit, at an average grade of 3.7 grams gold per tonne. Jinlonggou’s oxide zone has a measured and indicated 755,000 tonnes grading 2.9 grams per tonne, and a further 300,000 tonnes of oxide grading 3 grams per tonne is inferred.

The resource is based on a 1-gram-per-tonne cutoff grade.

At Qinlongtan, an indicated resource of 1.1 million tonnes, all in primary material, grades an average 8.6 grams gold per tonne. Another 2.7 million tonnes grading 3.1 grams per tonne is inferred. This resource, which also has a cutoff grade of 1 gram per tonne, was calculated down to a 180-metre vertical depth.

Afcan also anounced the completion of a private placement financing to provide funds for development of Tanjianshan, raising $10.4 million through the issue of 47.1 million units at 25 per unit. Each unit is a share with half a warrant attached, the warrants being exercisable at 37.5 for two years after the placement’s closing date of Nov. 19.

More than half of the placement was taken by London-listed Caledon Resources (CDN-L), which bought 23.9 million units for almost $6 million. The placement will give Caledon a 19% interest in Afcan.

Caledon is also active in China, with several gold projects in Guangxi province in southern China.