MINCO Gold Corporation is drilling at the Baimashi North target in the Yejiaba region of Gansu Province. The drilling program, consisting of 1200 metre core drilling in six holes, is designed to test a target area with strong gold anomalism.
Gold mineralization at Baimashi North is largely hosted within Triassic-age, thin-bedded phyllitic limestone on the hanging-wall side of a major E-W striking, northward dipping thrust fault.
Mineralization is concentrated along high angle NE, N-S and NW trending faults and carbonate veins, and displays a strong spatial association with altered syenite and diabase dikes and sills.
The gold target can be characterized as a low sulphide, low silica orogenic-type gold system that is dominated by carbonate veining and carbonate (ankerite) alteration. It has a similar geological setting to a number of gold deposits in the surrounding 30km-long Qinling/Yangshan Gold Belt, which contains China’s second largest gold endowment with about 308 tonnes gold in six major deposits controlled by a number of Chinese national companies, the largest of which is the Anba deposit, with about 281 tonnes of contained gold at 4.77 grams/tonne.
Minco Gold conducted an initial exploration program on the property last year comprising detailed geologic mapping, rock sampling, and soil sampling. The 247 rock samples collected within an area of about 1200 metres-long by 600 metres-wide run from 0.005 to 47.115 ppm gold and average 1.49 ppm.
Channel samples collected from abandoned tunnels by Minco geologists this past May returned 7.5 metres averaging 2.133 grams/tonne including a higher grade core of 1.7 metres @ 5.1 grams/tonne. The company believes that the Baimashi North target has good potential to host a substantial bulk tonnage gold deposit.
Meanwhile, Minco Gold’s wholly-owned subsidiary Minco Mining (China) Co has entered into an agreement with a private Chinese individual to sell the Gold Bull Mountain project in Hunan Province for total consideration of RMB 7 million (about Can$1.2 million). Minco received the first instalment payment of 30% of the total from the purchaser in July.
Minco Gold’s president and CEO Ken Cai says, “The sale of the Gold Bull Mountain project reflects the company’s focus on its core exploration properties in Gansu, China, and its continued efforts to dispose of its other non-core assets and to diversify its investment outside China.”
The Canadian-listed company owns a 51% equity interest in the Changkeng Gold Project and also owns a 100% interest in the Longnan projects with 10 exploration permits in Gansu province. It also owns 11 million shares, or about 18.45%, of Minco Silver Corporation.