Chinese OK Towerbeck JV

Denver — The Chinese government will allow General Minerals (gnm-t) to explore the Towerbeck gold joint venture in that country’s northwestern region.

The company can earn a 71% interest in the 56-sq.-km property by spending just under US$3 million on exploration. That percentage could rise to a maximum of 85% if the Chinese partners dilute their interest by not participating in the project.

Towerbeck is adjacent to the Axi open-pit mine, which produces 40,000 oz. gold annually, with a headgrade of 5.6 grams per tonne. According to the mine operators, the deposit contains reserves of 3 million oz., though no grade and tonnage estimate was released.

The mineralizing structure at Axi trends southward on to the Towerbeck property. Australia’s Western Mining (wmc-n) controls the concession to the east.

In the first year, General Minerals expects to spend US$165,000 on a combination of mapping, sampling, trenching and tunneling.