Theres gold in China.Interesting article I found this am. I think it was listed under the SWG news. It seems that TVI is not the only company that knows about the huge potential that lies in China. Also, check out what happened to SWG's share price when recent drill results were announced.
Regards, DH
Axcess News: The Race for China's Gold
4/27/04
Apr 27, 2004 (M2 PRESSWIRE via COMTEX) --
(AXcess News) Reno NV - Reforms to mining laws in the past decade and the chances of making sizeable discoveries was polishing China's appeal for international gold mining, according to John Dow, Newmont Mining Corporation (NYSE: NEM) managing director for Australia.
China, which has grown into the world's 4th largest gold producer, may be heading to no. 1 as foreign exploration and development interests climb.
Speaking on the sidelines of a mining conference, Dow said the miner regretted not making inroads into gold mining in China to date.
'I think we neglected China and it's the world's fourth-biggest gold mining country and not well-explored,'Dow said.
Newmont has had offices in China since 1993, but has not dabbled in the country's highly fragmented mining sector, Dow said.
While Newmont ponders China's gold production other mining companies are actively exploring and developing properties.
Shares of Southwestern Resources Corp. (TSX: SWG) jumped almost 16 per cent a day after the company reported positive drill results from its Boka gold project in northern Yunnan province, China.
On the Toronto market, Southwestern shares were up $5 to $36.85 in the early afternoon March 24th, on trading volume of more than 480,000 shares.
The Vancouver-based miner reported that five drill rigs with two contractors are operating at the Boka sites and two more rigs will be in place in a few weeks.
Dynasty Gold Corp. (TSXV: DYG) announced yesterday that it has struck a deal to acquire an 80 per cent stake in the Red Valley Gold project in China, the junior company's third mining project in China.
'Along with our interests in the Xinjiang autonomous region and Gansu province, the Red Valley acquisition consolidates Dynasty's position as one of the leading foreign prospectors of mineral properties in China,' company president Jonathan George said in a release.
Australian exchange listed Leyshon Resources (ASX: LRL), through the acquisition of China Metals, has concentrated its efforts in China on the Heilongjiang province which is up in the northeast of China close to the border with Amur, the far eastern region of Russia where Peter Hambro Mining's Pokrovskoye gold mine is situated. It is a highly prospective area at the eastern end of the Tien Shan gold belt and China Metals has agreed to a province wide deal with the Heilongjiang Provincial Bureau of Geology and Mineral Resources Exploration and Development. Quite a mouthful, but it will be a 30 per cent partner with China Metals holding the controlling balance in a Chinese registered company called Black Dragon Mining. This is a very sensible approach and very similar to that adopted by the well respected Canadian company Afcan down in Qinghai province to the southwest.
The First Geological Exploration Institute of the Heilongjiang Geology and Mineral Development Bureau also inked a deal with Savoy Resources Corp (OTCBB: SVYR) for the purpose of exploring and developing the mineral resource base in Heilonjiang Province.
The First Institute is responsible for mineral resource discoveries, licenses and concessions in Heilongjiang Province, the largest province in northeast China, which covers an area of approximately 469,000 sq. km.
Savoy's agreement, while the first joint venture entered into by the Heilongjiang Geology and Mineral Development Bureau, is similar to Leyshon Resources but the Denver-based company beat out ASX: LRL in inking the deal first, giving the junior mining newcomer a jump start in the China gold feeding frenzy by foreign mining corporations.
Savoy and the First Institute will be 70% and 30% partners, holding both the exploration licenses and the exploration rights to all the properties held by the First Institute in northeast China.
Savoy is to inject $1 million into the joint venture agreement and has retained Archer, Cathro &Associates to evaluate the substantial documentation made availble by the First Institute, a collection of 50 years of documentation.
Archer, Cathro &Associates is one of the world's leading geological consulting organizations.
According to the Goldsheet, China has grown into no. 4 in world gold production in less than ten years. In 1995 China first came on the radar screen with a 6.2% share of global gold production. By 2003 that figure had grown to 7.7% while US production over that same period shrank from 14.1% (1995) to 10.2% in 2003.
AXcess News published a story in mid-March about the gap in US gold production that focused on some of the junior mining companies that were gearing up production. In contrast, China's future appears to be outpacing all of the other major global gold mining prospects. While Savoy's joint venture may tie up a sufficient amount of claims to attract the larger operators, like Newmont, into stepping up to the plate and turning those claims into producing mines, Savoy may keep the best parcels for its own portfolio.
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