Drive for half an hour southwest of Guangzhou — China’s fourth-largest city of 13 million people, across the border from Hong Kong — and you’ll come across the Changkeng gold project, where Minco Gold (MMM-T, MGH-X) has released an initial resource estimate.
Based on diamond-drill data from 81 drill holes and 13 surface trenches, the Canadian junior is reporting an indicated resource of 2.1 million tonnes grading 5.61 grams gold per tonne for a total of 379,000 oz. gold.
The estimate puts inferred resources at 2.2 million tonnes grading 4.82 grams gold for a total of 333,400 oz. gold.
The resource estimate was defined using approximate 24-month trailing average metal prices (January 2008) of US$650-per-oz. gold and US$12.50-per-oz. silver.
Cost estimates came in at a total of US$30 per tonne, based on a process recovery of 95% for gold and 90% for silver at a cutoff grade of 1.5 grams gold equivalent per tonne.
Under its joint-venture agreement, Minco has the right to earn a 51% equity stake in the project.
Beneath the gold-dominant zones at Changkeng are silver-dominant zones that form part of the Fuwan silver deposit and are geologically distinct from the gold-dominant zones. Minco Gold spun off the silver assets on the property to Minco Silver (MSV-T, MISVF-O). Minco Gold currently holds about 13 million shares of Minco Silver.
The Changkeng-Fuwan gold and silver deposits lie within the Sanzhou basin — a triangular Upper Paleozoic fault-bounded basin.
The Changkeng gold mineralization occurs as lenses of brecciated and silicified Triassic clastic rock.
Two gold-bearing zones are exposed at surface and merge at depth and along strike to the northeast. The deposit is open to the east, south, and downdip from the outcropping mineralization.
Minco has 42.9 million shares outstanding and a 52-week trading range of 67-$2.18.
Be the first to comment on "Minco Gold releases resource for Changkeng"