re: sino gold announces new joint venture in golde
AFX News Limited Australia's Sino Gold forms new jv for gold exploration in China 10.17.2006, 12:37 AM
SYDNEY (XFN-ASIA) - Sino Gold Ltd said it has formed a new joint venture with Brigade 105, a subsidiary of the Guizhou Bureau of Geology and Mineral Resources (BGMR), covering seven exploration areas in China
Under the terms of the deal, Sino Gold will hold an initial 60 pct in the venture, eventually building it up to 92.5 pct as expenditure milestones and agreed payments are met.
The exploration sites are situated on the boundary of Guizhou and Yunnan Provinces near Sino Gold's Jinfeng Mine which is expected to commence commercial gold production in the March 2007 quarter.
Sino chief executive Jake Klein said the exploration zone is one of China's most promising and under-explored gold belts, with several deposits of more than one mln ounces of gold, including their own four mln ounce Jinfeng deposit.
'Our partner has a history of successful exploration in the area and the combination of our exploration experience in Jinfeng and their local experience is very powerful,' he said.
