Princess picks up three licences in central China

China’s Ministry of Land and Mineral Resources has granted four gold exploration licences to the Chinese affiliate of Princess Resources (PRL-V).

The affiliate, Princess Xinxiang Geological Mining, is a joint venture between Princess Resources and Xinxiang Geological Mining, itself a subsidiary of the Hunan Non-Ferrous Metal Exploration Bureau.

The joint venture encompasses three properties situated 275 km south of Changsha in Hunan province: Da Fang (32 sq. km), Longxingzai (13.9 sq. km) and Ou Chong (36.7 sq. km).

Princess Resources will earn a 51% interest in the three properties after contributing US$2 million to the joint-venture company. To date, in excess of US$2 million of the total expenditures incurred in China qualifies as a contribution to the joint venture.

Princess says these are the first gold exploration licences to have been issued to a foreign joint venture in China by the state government.

At Da Fang, Princess is undertaking a reverse-circulation (RC) and diamond drilling program totalling 22,500 metres. The program is expected to wind down by year-end.

Princess has a principal office in Changsha and a site office in Guiyang. The company employs nine expatriates, including two exploration geologists, and is operating an RC drill rig supported by three Chinese diamond drill rigs. Also employed are 57 Chinese workers, including seven geologists.