THE establishment of a joint venture company for exploration and development of gold prospects in the prospective Daxinganling (DXAL) region of Heilongjiang province has reached its final phase. The JV will be between gold mining exploration and advisory company China Shouguan Mining Corporation and the Daxinganling government.
The JV follows China Shouguan signing a Memorandum of Understanding (MoU) with the Daxinganling government. China Shouguan also signed a Cooperation Framework Agreement with Enterprise Guolin Investment Limited Company which is a direct subsidiary of the Daxinganling government.
Under these agreements, China Shouguan would be responsible for the exploratory operation and development of gold deposits in the DXAL region. The exploratory work is expected to commence by the end of the year.
Guolin is a wholly-owned subsidiary set up by the Heilongjiang Province Prefectural Party Committee, Administrative Bureau and The Forestry Group. In recent years, Guolin has been involving in four sizeable gold mining areas to develop exploration projects and was granted six exploration rights, and expects to obtain another six exploration rights in the near future.
With the DXAL Government being highly restrictive on environmental checks, the establishment process has taken longer than originally anticipated but the exploration and drilling permits are finally under the approval process.
China Shouguan expects exploration to commence shortly after the approval of the licences and as parts of the DXAL area have not been explored using modern methods, the company believes it will represent significant opportunities.
Daxinganling metallogenic zone has a total area of more than 200,000sqkm. It is one of the 19 major metallogenic zones and one of the three key strategic mining zones in China. The zone is also a prioritized survey area of the China Geological Survey Bureau and existing mineral rights account for nearly 33% of the province’s total.
China Shouguan acquires or leases under-performing mines in major mineral zones, then funds their expanded exploration and production utilizing industry leading technologies. It operates in gold-rich areas of Shandong and Heilongjiang provinces and also plans to acquire mining operations in Australia, North America, and South East Asia and is focused on listing on the NASDAQ by 2015.
It has also recently signed an MoU with Tong Guan Hong Ji Mining Company to lease Tong Guan’s business assets in Shanxi Province for one year with the intent to acquire afterwards should the operation be successful and profitable.
Tong Guan specializes in applying mud cyaniding technology on tail mineral sites. These processes not only allow extraction of gold and other precious metals from the tail mineral sites but also vastly improve the ecological environment of mining areas, which is a key objective of the local government.