Asia Minerals (AMP-A) will invest $6 million from a recent private placement in the Yingezhuang gold mining joint venture in China’s Shangdong province.
The partners aim to increase the mine’s annual production to 80,000 oz.
gold.
Last year the mine turned out 13,500 oz. of the yellow metal at a cash cost of US$205 per oz.
Yingezhuang hosts 19.5 million tons of reserves (in all categories) grading 2.8 grams gold per tonne, or 1.78 million contained ounces. This total includes proven reserves of 7.5 million tonnes grading 2.8 grams gold.
A feasibility study, aimed at expanding the operation, is under way. It will include a 10,000-metre drill program.
The balance of the $7-million placement will be used to fund the acquisition and development of other gold projects in Shandong province and in other parts of China, as well as in Malaysia.
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