Sinogold
Sino Gold Mining Limited (Sino) is an Australia-based company. The principal activities of the Company are mining and processing of gold ore, and sale of recovered gold, and exploration and development of mining properties. The Company mined 692,000 tons of ore through open-cut mining during the year ended December 31, 2007. At December 31, 2007, Sino had acquired a 94% interest in Golden China Resources Corporation. The operation in Jinfeng Mine achieved commercial production on September 1, 2007. A total of 449,000 tons of ore were treated during 2007, with an overall recovery of 71.9% producing 56,981 ounces of recovered gold. In 2007, 43,483 ounces of gold were sold. As of December 31, 2007 the 230 meter of underground development was achieved in White Mountain. Compulsory acquisition of Gold China Resource Corporation was completed on January 16, 2008.
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Sino Gold increases stake in high grade Eastern Dragon prospect in China
Sino Gold (ASX:SGX) has advised that ownership of Eastern Dragon Lode 5 has increased from 80% to 95% at a cost of US$20 million. Ownership of the surrounding 53 km2 Exploration Licence (“EL53”) has increased from 25% to 60% at a cost of US$11 million. An aggressive drilling program during the upcoming field season is aimed at extending Lode 5 and discovering similar high-grade, gold-silver deposits in EL53.
Sino Gold Chief Executive Officer, Jake Klein, said: “We are very pleased to increase our ownership in both Eastern Dragon Lode 5 and the surrounding Exploration Licence. Our feasibility studies completed to date have confirmed the uniqueness of the asset in the global gold universe with predicted cash operating costs of only US$100 per ounce (including silver credits).
“Increasing our ownership in EL53 enables us to trigger a comprehensive exploration program for Lode 5 and the surrounding ground in the upcoming field season. We are planning to mobilise five drill rigs to Eastern Dragon by late April.
“We look forward to testing the strong potential for Lode 5 along strike and for parallel lodes plus now exploring EL53 for additional high-grade, epithermal deposits similar to Lode 5.
“Our team is continuing to progress the required permitting and further studies that are aimed at enabling the Sino Gold Board to commit to develop the Eastern Dragon Project during 2009 to become Sino Gold’s third operating mine as rapidly as possible.”
Sino Gold has agreed to increase its equity from 80% to 95% in the Eastern Dragon Lode 5 Exploration Licence. The US$20 million cost for the additional 15% joint-venture interest will be made in instalments as specified government approvals are received and key milestones are achieved.
Sino Gold has also agreed to increase its equity from 25% to 60% in the surrounding EL53. The US$11 million cost for the additional 35% joint-venture interest is payable upon receipt of the relevant government approvals and transfer of the exploration licence into the name of the joint-venture company. This transaction includes Sino Gold receiving a pre-emptive right to further increase its interest to 95% in EL53. The geological setting of EL53 is considered favourable for hosting similar epithermal gold-silver deposits.
Sino Gold has set an ambitious schedule to bring Eastern Dragon into production. Development of Eastern Dragon may commence in late 2009 if feasibility and design work continues on schedule and provided required approvals are received expeditiously.
Eastern Dragon "is an important part of Sino Gold’s growth strategy that is being rapidly progressed towards becoming Sino Gold’s third mine."
Other Sinogold news
- Eldorado Gold to acquire Sinogold for A$2.2bn
2009-08-27 - Sino Gold sees record production and starts developing third mine
2009-04-22 - Sino Gold in $176 million loan facility with China Construction Bank
2009-02-25
