China Shouguan Mining Corporation is expanding mine operations into the gold rich Heilongjiang Province in northeast China. The company’s portfolio of long-lived assets will now include gold, silver, copper, lead, zinc and molybdenum.
An agreement signed with the province’s DaXingAnLing Government (DXL) in November 2013 involves broad cooperation with Guolin Investment Company, DXL’s subsidiary. Guolin is highly experienced in gold and mining operations and presents a strong partner for China Shouguan.
Under the terms of the agreement, China Shouguan will utilize its advanced techniques and conduct exploration and development of the gold deposits in the DaXingAnLing area. Exploratory work is expected to begin in March 2014.
Chairman Zhang says, “The expansion of our gold and silver focused co-operative project now presents additional opportunities for China Shouguan Mining. We will be adding silver, copper and molybdenum, which is a key ingredient in making steel strong and corrosion resistant.
“Molybdenum is in high demand as China keeps building power plants, turbine engines, offshore drilling rigs and turbine engines. It is also highly valued as a high-performance specialty lubricant and is a key component in fertilizers, retardants and vitamin supplements.”
The agreement follows the initial signing of a Memorandum of Understanding between China Shouguan and the DaXingAnLing Government in November 2013. The initial three projects that China Shouguan will begin exploration and development of are:
- DXL West 15 - Covering 500sqkm for gold and silver exploration along with other minerals.
- ShaBaoSi gold mine - Covering 448sqkm with 10 exploratory rights licences to mine gold, silver, copper, zinc and molybdenum.
- TaYuanTong Polymetallic Project - Covers an historically rich gold, silver, zinc and copper reserves area and includes the project’s mining licence.
Chairman Zhang says, “The diversification of our reserve potential and the expansion of our holdings will greatly increase the company’s projected cash flow for 2014. These longer-term development projects present organic growth opportunities, which the company will build on. With our special government relationships these projects have low political risk and offer significant upside and growth potential.”
China Shouguan Mining’s existing gold projects are in the gold-rich zones of Shandong Province. The company acquires or leases under-performing mines in major mineral zones, then funds the expanded exploration and production utilizing industry leading technologies. China Shouguan is planning to acquire mining operations in Australia, North America and South East Asia and is focused on uplifting to NASDAQ by 2015.