Vancouver —
The deal was also approved by the Yunnan Province People’s government, the Department of Foreign Trade and Investment, the Development and Planning Committee of Yunnan, and the Department of Land and Resources of Yunnan. The approvals will allow for the creation of Yunnan Jin-Chang-Jiang Mining, in which SKN will have an 80% interest, and Kunming Gold, the remainder.
In mid-August, SKN inked a deal with Kunming Gold to form a sino-foreign joint venture to explore Tuobuka. According to the deal, SKN will earn its 80% interest by making certain cash payments to Kunming over three years. SKN already has completed its first cash payment. Once the earn-in is complete, cash contributions to Jin-Chang Jiang Mining will be made on a pro rata basis. Kunming Gold’s interest may be diluted to not less than 10% if the company elects not to make cash contributions.
The Tuobuka project covers an exploration permit spanning 24.6 sq. km, about 2 km south of the Boka 7 zone of
Based on the limited exploration work preformed to date by Kunming Gold, the Tuobuka project hosts gold-bearing structures and mineralized zones similar to those now being explored by Southwestern on the Boka property.
Gold mineralization at Tuobuka is hosted by Middle Proterozoic-aged carbonaceous shales and calcareous siltstones in a stratabound thrust zone of ductile-brittle shearing. This shear zone is characterized by extensive multi-phase breccia/ shear development and accompanied by quartz-carbonate and sulphide (pyrite) replacement.
Trenches dug by Kunming Gold cut several north-south-trending gold-bearing zones of mineralization. Sampling of these zones returned 3.6 grams gold per tonne over 13 metres and 48.4 grams gold over 0.8 metre.
SKN has contracted Kunming Gold to perform mapping, soil geochemical and topographical surveys, and surveying and sampling of small-scale mining tunnels. Drilling will test the best targets.
Together with SKN’s Huidong and Dongchuan projects, SKN now controls most of the land surrounding Southwestern Resources’ Boka project.
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