Hi Eintracht,They have planned to re-commence work at Zheng...

Hi Eintracht,

They have planned to re-commence work at Zheng Guang in April after shutting down all work to conserve cash last Autumn.

They still need to find a source for finance, or find alternative courses of action.

I remain optimistic about their project potential. They only need c. US$35m for the CIL plant (as US$24m for floatation plant could wait until 2011) so a 75:25 debt:equity deal looks do'able, even in these tough times.

Economics of ZG look ok, with 1.43g/t gold, 5.19g/t silver and a bit of zinc to follow eventually.

Initial Au production would be c. 76koz, rising to c. 114koz once the sulphides are processed (say 2012).

Market is waiting to see whether this project will move forward or not.
CPDLC