Asia Minerals to evaluate polymetallic project in China

An agreement with Chinese officials allows Asia Minerals (ASE) to evaluate yet another polymetallic mineral project in the Asian country.

During the past few years, the junior has evaluated several mineral projects in China, including the advanced Qiandongshan zinc-lead deposit in Shaanxi province (T.N.M., Jan. 24/94).

Some funding has been provided by Royal Oak Mines (TSE), which has the right to participate in any of the base metal or gold projects Asia Minerals acquires in China.

The recent “letter of intent” agreement allows Asia Minerals to acquire a 70% interest in the Cai-Jai-Ying project, an advanced lead-zinc-silver deposit in Hebei province.

The Chinese partners completed a pre-feasibility study, which evaluated mining 700 and 1,500 tonnes per day, using both open-pit and underground methods.

Proven and probable reserves are 10 million tonnes grading 8.9% zinc, 0.4% lead and 41 grams silver per tonne. Asia Minerals President David Owens says the project also hosts an additional 20 million tonnes of low-grade lead-zinc mineralization, plus “excellent” exploration potential.

A detailed property and economic evaluation of the deposit will begin in March. The company’s future participation in the proposed joint venture is conditional on the results of a technical and economic mine pre-feasibility study to be completed before June.

Should Asia Minerals elect to participate, it will earn a 70% interest in the project by providing 70% of the registered capital of the proposed joint venture. The estimated capital cost to construct a 700-tonne-per-day mine is US$7.3 million.

Cai-Jai-Ying is 115 km northeast of Zhangjiakuo, the provincial capital of Hebei. It is also about 500 km from port and smelter facilities in northeastern China.