GOBIMIN has submitted the first of three Chinese standard geological reports required to convert the exploration licence of the Sawayaerdun Gold Project in Xinjiang Province into a mining licence. If the process goes well, a mining licence would be obtained by the end of 2017.
|The camp buildings at GobiMin’s Sawayaerdun Gold Project in China’s far west.|
Due to the decline of global gold market prices in 2015, GobiMin held off the development plan but has undertaken the process to convert the exploration licence into a mining licence. In order to obtain the licence, GobiMin is required to complete three Chinese standard geological reports, the first of which have been submitted.
The company has also submitted the April 2015 resource estimate to regulatory authorities for approval. The project contains total measured and indicated resources of 26.84 million tonnes at 1.79 grams/tonne gold for 1.545 million ounces, and inferred resources of 59.38 million tonnes at 1.38 grams/tonne for 2.626 million ounces.
GobiMin also continues to seek potential investors to develop the project. It owns a 70% equity interest in a Chinese company which is developing Sawayaerdun. The project is 38km north of Wuqia in Xinjiang’s far west and is within the prolific Tien Shan Gold belt.
The company recently announced that it has sold a partial shareholding of Loco Hong Kong Holdings for gross proceeds of approximately US$10.62 million. Prior to the sale GobiMin held 38.3% of Loco HK.
GobiMin CEO Felipe Tan said, “In order to increase the flexibility to invest in more potential assets or projects in future and strengthen the financial resources of the company, it was good timing and value to realise part of GobiMin’s investment in Loco HK particularly in view of the market price of Loco HK shares and the economic conditions.”
Loco HK is engaged in the processing and trading of metals and commodity forward contracts. Income is mainly generated from sales of silver bars and ingots as well as the processing of silver into bars and granules.
In addition, GobiMin owns 40% interests each in three companies incorporated in China to engage in base metals and precious metal exploration, including nickel, copper, and gold, in Xinjiang. Owing to depressed markets in 2015 these companies did not undertake any exploration and GobiMin has sought opportunities to sell the licences. It also has a 2.66% equity interest in the Yanxi Copper Property.