Vancouver – A cash-rich GobiMin (GBM-V) – it has $88 million in the bank – is making a foray into gold exploration.
For just shy of $8 million GobiMin signed an agreement for a 70% interest in the Sawayaerdun project, Xinjiang province, China.
Two Chinese joint-venture partners, Xinjiang Baodi Mining and Brigade No. 2 of the Xinjiang Bureau of Geology and Mineral Resources, will hold the balance, each with 15% interests.
With its majority stake GobiMin will be the operator of the project and has plans to update historical work on the project which has so far outlined over 20 mineralized areas.
GobiMin reports one target, Zone IV, has a non-National Instruments 43-101 compliant resource estimate of 4 million tonnes grading 2.5 grams gold per tonne.
Northeast trending, steeply dipping, sheared structures host gold mineralization on the property in late-Carboniferous psammitic rock.
Previous operators of the project completed nearly 9,000 metres of drilling.
GobiMin is well acquainted with Xinjiang province, where it is already involved in at least five other joint ventures including a 40% interest in the Yanxi Copper Project.
Last Ocober GobiMin estimated Yanxi’s indicated resource estimate at 15.4 million tonnes grading 0.75% copper.
On news of the acquisition agreement GobiMin’s shareprice gained 2¢ to 90¢. The company has about 68.8 million shares outstanding.
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