Asia Mine (ASE) has added to its existing intrests in China by signing an option to evaluate and develop the Ashele volcanogenic massive sulphide copper-zinc deposit in northwest China.
Asia Minerals will have the exclusive right to negotiate an option to earn up to a 60% interest in the project, provided it completes a positive pre-feasibility study.
The pre-feasibility must be completed by Nov. 30, 1993, and the company is now determining the scope of the study prior to hiring an engineering consultant.
Ashele contains an estimated geological reserve of 24 million tonnes grading 3.1% copper and 1% zinc. This includes a higher-grade core totaling 17 million tonnes at 3.8% copper and 1.5% zinc.
The deposit sits on the axis of a steeply plunging syncline and measures about 500 metres downdip and 600 metres in strike. The deposit averages about 40 metres in thickness and the average depth from surface is 500 metres. The property is accessible by road while power and water sources are available 15 km away.
President David Owens expects the previously announced private placement with Royal Oak Mines (TSE) to close shortly. Royal Oak is buying five million common shares of the company at 40 cents each as part of a
right-of-first-refusal agreement on any of Asia Mineral’s Chinese projects. By completing a final feasibility, Royal Oak has the right of first refusal to acquire a minimum 50% interest in any project.
Meanwhile, in northwest China, Asia Minerals plans to evaluate a new copper-zinc smelter to process concentrates.
The company is also considering acquiring a 55% interest in the QDS project in northeastern China. Estimated reserve: 12.2 million tonnes grading 1.8% lead, 7.9% zinc and 23 grams silver per tonne. The deposit is being mined at 200 tonnes per day and the proposed joint venture is studying construction of a 1,200-tonne-per-day mine.
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