The Chinese government has given its approval to World Wide Minerals (TSE) to establish its Dawuyao joint venture for gold exploration and development.
The project is held 55% by World Wide and 45% by affiliates of the Ministry of Metallurgical Industry. The principal concern of the venture is the 251-sq.-km Dawuyao project in northern Shanxi province. The project area is centred around the existing Baoziwan gold mine, a 275-ton-per-day operation with a contained reserve of 300,000 oz. grading 0.15 oz. per ton.
World Wide estimates the Dawuyao project has the potential to host a contained gold resource of 4 million oz. at minable grades.
World Wide has been seeking approval for the joint venture for the past two years. The Dawuyao is one of several gold projects recently approved by the Chinese government as part of a broadening of rules concerning foreign investment in its gold mining industry.
Elsewhere in China, World Wide has agreed to acquire a 60% interest in the gold mining concerns and a 100% interest in other mining ventures held by Targa China Corp. Targa is a unit of the Dynamic Asia Venture Fund.
Included in the newly acquired gold assets is a 60% interest in a joint venture committed to exploring and developing gold resources in four areas of Shandong province, as well as other investments in several other provinces.
World Wide will buy the interests for $US$1.4 million, in the form of 2 million World Wide treasury shares. World Wide’s outstanding share capital will rise to 19 million common shares, of which 40% will be held by the Dynamic Asia Venture Fund.
In other news, drilling on World Wide’s Easter property, near Caliente, Nev., has returned encouraging results.
The program was aimed at testing a 1,300-ft. section of the 7,000-ft.-long Main gold zone. Of the six reported intersections, widths varied from 10 to 125 ft., while grades ranged between 0.029 to 0.12 oz. gold per ton.
World Wide is planning a follow-up program to test the eastern and western extensions of the favorable structure.
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