NEW Era Minerals is operating with reduced activity levels in order to control costs and maintain cash balances. This also applies to the company’s Suyeke North Nickel Project in Xinjiang-Uyghur Autonomous Region with no planned or budgeted works.
|Drilling on the Suyeke North Nickel project in Tuoli County, Tacheng Area, Xinjiang-Uyghur Autonomous Region.|
The company is proactively reducing expenditure levels in an effort to conserve cash while it identifies and evaluate new opportunities going forward. It says that at this time, it continues to maintain its exploration and evaluation properties in good standing.
As part of its cost control process, in March 2016 the company decided to close the Urumqi office.
New Era, through wholly-owned subsidiary, Haijin International Group, owns 95% of Xinjiang Yongkun Mining Co Ltd. Yongkun’s principal activities are the exploration, evaluation and development of mineral interests in China, including Suyeke North, which is about 425km west of Urumqi and 125km southwest of Karamay.
Yongkun signed an agreement to purchase the property from Sichuan Zihao Mining in 2011 and received a new exploration permit on August 22, 2012. This permit was valid until May 22, 2014, and on May 5, 2014, the company received a renewed permit valid until May 5, 2017, which authorises enhanced exploration.
Exploration work is contracted to Xinjiang Oyasa, a private company that holds a 5% share in Yongkun. Indicated resources are estimated at 26.6 million tonnes averaging 0.21% nickel which represents 55,000 tonnes of contained nickel while inferred resources are estimated at 76.6 million tonnes averaging 0.21% nickel which represents 161,000 tonnes of contained nickel.
Other large nickel deposits in Xinjiang are Kalatongke copper-nickel deposit, Ruoqiang nickel deposit, Hami Huangshan copper-nickel deposit and Hami Tudong copper-nickel deposit.
New Era recently announces that Greg Hawkins and Dickson Hall had resigned as directors with Yungang Wu and Jing Peng subsequently appointed to the Board.
Yungang Wu is a geologist with 25 years of experience internationally in mineral exploration, resource estimate and mining. He is a member of the Association of Professional Geoscientists of Ontario and holds a Master’s Degree in Mineral Deposits from Jilin University, China. He is a non-executive director of Gowest Gold Ltd and East Iron Ltd.
Jing Peng is a Canadian Chartered Professional Accountant with a Master of Management and Professional Accounting degree from the University of Toronto. He has acted as CFO for other Canadian reporting issuers and previously served as an accountant with two large accounting firms.