Hong Kong-listed precious metals company Sino Prosper State Gold Resources is making progress in its bid to become a major Chinese precious metals producer. The company plans to acquire near-production mining projects with a current focus on the 70% owned Aohanqi project in Inner Mongolia.
Remedial construction and safety upgrades at the mine’s 500 tonne per day processing plant have been completed with production restarting on September 20 and currently ramping up back to full processing capability. The upgrade and extension of the office buildings, tailings pond and ancillary facilities is now under way.
Sino Prosper’s CEO Sung Kin Man says the second stage of the mine expansion is advancing. “Construction of four new and larger standard specification vertical shafts will increase the mine output capacity to 2,000 tonnes per day and will allow for access to a number of additional mineralized zones,” he said. The mine expansion is expected to be completed in early 2012.
The company is also just a year away from commencing operations at its Zhongyi-Weiye poly-metallic project in Heilingjiang province. New high potential targets are being drilled in a 3000 metre program. The company owns five exploration licences at the project covering an area of 364.61sqkm. Initial exploration work has focused on the PaoShouYingDongShan, SanChaLu and XiNanCha tenements to upgrade the resources base and obtain mining permits.
Assay results from a drilling program at Zhongyi-Weiye last year were disappointing with lower than expected grades and quantities identified. But the company says four drill rigs are in place at the new targets, with the first phase of drilling expected to be complete by the end of 2011. Sino Prosper says its objective is to develop the resource reports, apply for mining licenses and start first production by the end of 2012.
In other news, the due diligence work on a property in China’s Hebei province has been completed. A Sino Prosper subsidiary signed an agreement in April 2011 to acquire up to 85% of an independent company holding the mining and exploration license for a silver and manganese mine in Zhuolo County. However, the due diligence results have not met the company’s expectations and Sino Prosper has decided not to proceed with this project.