An independent study of the Qiandongshan (QDS) zinc-lead-silver project in China’s Shaanxi province has left American Exploration (ASE) confident about reserves.
Proven and probable reserves are about 11.5 million tonnes grading 1.7% lead, 7.6% zinc and 23.5 grams silver per tonne. The total includes a proven category of 6.4 million tonnes grading 1.6% lead, 8.2% zinc and 23.5 grams silver.
American Exploration holds the right to acquire Asia Minerals which, in turn, can earn a 60% interest in QDS.
Purchase price for the 100% interest in Asia Minerals is three million shares, which will increase the total outstanding to about 9.1 million shares. James Owen, president of American Exploration, said the 60-40 joint venture with the Chinese government will take into account the $5 million already spent on the property.
Cominco Engineering Services is studying QDS in terms of its engineering, technical, environmental and economic components.
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