Vancouver juniors Southwestern Gold (SWG-T) and Global-Pacific Minerals (GPJ-V) have signed an agreement with the Chinese government for 3,000 sq. km of exploration concessions in province of Inner Mongolia.
The Haoya project, 650 km northwest of Beijing and a 3-hour drive from the city of Bao-Tou, is accessible by road and equipped with electrical power.
The Chinese government has defined three gold zones on the property, with the Main zone having been traced continuously for 2,000 metres. It is associated with swarms of quartz veining.
Trenching indicates a consistent width of 35-50 metres averaging 2 grams gold per tonne. Local, higher-grade zones average 20 grams. The mineralization has been traced intermittently over an additional 3,000 metres, along which numerous old workings are reported.
One of the two other zones has been delineated over an area spanning 1,500 by 3,000 metres, and consists of sheeted quartz veins in metamorphosed carbonaceous sediments. Trench results show up to 15 grams over intervals of 5-15 metres.
The third prospect appears to be related to a series of gold zones measuring 120-400 metres long and about 10 metres wide averaging 5 grams.
Drilling on the Main zone will begin in April.
Southwestern and Global-Pacific can earn a combined 80% interest in the joint venture by paying US$125,000 and spending US$2.8 million on exploration over four years. Funding requirements will be split 70% by Southwestern and 30% by Global-Pacific, for overall interests of 56% and 24%, respectively. The Canadian firms will manage the project.
In related news, the Chinese government has approved a contract between a subsidiary of Global-Pacific and a subsidiary of the Economic Planning Committee of Huaibei City to develop the Qian Chang gold-copper-iron skarn deposit in the central Chinese province of Anhui.
Anhui Global-Pacific Minerals can earn a 97.5% interest by paying US$42,000 per year once production starts, subject to 10%-per-year escalation after capital recovery. The Chinese partners will retain a 2.5% net profits interest.
Reserves stand at 3.2 million tonnes grading 2.08 grams gold and 4.5 grams silver per tonne, 0.78% copper, 45.8% iron and 0.017% cobalt. According to the company, 60% of the reserves can be mined from existing twin shafts.
Local engineering firms are preparing to dewater the shafts and underground workings.
Global-Pacific anticipates annual production of 5.1 million lb. copper, 21,000 oz. gold, 229,000 tonnes of iron concentrate (containing 64% iron) and 64,710 lb. cobalt.
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