GobiMin Inc expects to release a new resource estimate for the Sawayaerdun Gold Project in Xinjiang early in 2015. The new NI 43-101-compliant estimate is being prepared by Mining One Pty Ltd following a visit to the project in October.
The company owns a 70% equity interest in a company which is developing and operating the Sawayaerdun project.
During the three months ended September 30, 2014, drilling of approximately 8200 metres was completed for a cumulative 2014 total of approximately 8500 metres from 46 completed holes. Other exploration work done during the quarter included core logging and sampling.
The exploration program of Zone I and Zone IV for 2014 has now been completed, and GobiMin continue the remaining planned drilling of Zone XI and the construction of the office building during October. All exploration and construction work was suspended at the end of October due to the start of the snowing season.
GobiMin also holds an equity interest of 48.02% in Loco Hong Kong Holdings Ltd which together with its subsidiaries engage in metal trading and processing, predominantly in silver. To prepare for the listing of its shares on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited, China Precision completed a capital reorganization in August 2014.
Dealings in the shares of Loco HK on the GEM commenced on August 5 under the stock code 8162. Each of GobiMin and its two wholly-owned subsidiaries, namely GobiMin Investments Ltd and GobiMin Silver Ltd, as well as its CEO Felipe Tan, entered into non-competition undertakings and a tax indemnity in favour of Loco HK and all the shares in Loco HK held by the group are subject to a 12 months non-disposal undertaking.
The equity interest of the group in Loco HK remains approximately at 48.02%. The group recorded a gain from bargain purchase of $0.4 million for the reorganisation.
The group owns 40% equity interests each in three exploration companies incorporated in Xinjiang, China, for nickel, copper, and gold. They are treated as associates of the group. The net cost of the investment in these three exploration companies amounted to U $700,000 (RMB4.3 million). The carrying value of these companies as at September 30, 2014 was US$300,000 (RMB2.0 million).
GobiMin also held a 3.5% equity interest in Xinjiang Tongxing Minerals Ltd, which is the licence holding company of the Yanxi Copper Property. After netting off the related payments and expenses of approximately $6.8 million including drilling work and costs in relation to the application of the mining licence of the new area adjacent to the Yanxi Copper Property and amount payable to the local shareholders, the group recognized an additional gain of approximately $4.0 million for the New Area in June 2014.