Toronto-based McVicar Minerals (MVR-A) has signed a letter of intent with a Chinese government agency to explore the producing Xiaojin gold property in southwestern China.
The small open-pit, heap-leach mine has been operated by Yunnan Bureau of Geology and Mineral Resources (YBGMR) since 1993. In 1997, the mine produced about 1,000 oz. The deposit is said to contain an oxide resource of 10 million tonnes grading 2 grams gold per tonne, equivalent to 700,000 contained ounces. Ongoing exploration by YBGMR includes trenching, drifting and drilling.
The property’s mineralization, which can be traced by three geochemical anomalies over a strike length of 3.5 km, is associated with a northwest-southeasterly striking fault zone. Two of the anomalies have been evaluated through drifting, trenching and drilling.
McVicar can earn a 50% interest in the project by financing exploration up to the feasibility stage. The company can earn an additional 25% by securing development funding.
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