In late September of 2007, EVG announced that they'd signed a...

In late September of 2007, EVG announced that they'd signed a memorandum of understanding with Shandong Gold Company Limited, to process gold tailings from Shandong's operations.

Shandong Province is recognised as China's most significant gold producing region.

The Shandong project was expected to be based on a centralised Albion plant, which would have been fed from existing tailings deposits scattered throughout Shandong Province, plus high grade refractory ore from Shandong Gold's existing mines.

EnviroGold held the exclusive rights to utilise the Albion process on tailings projects identified by Envirogold for two years [as reported in 2007] in Shandong and four other gold producing Provinces.

The concept of the joint venture was to involve Shandong Gold making suitable tailings available without charge but in the expectation that EnviroGold would provide or arrange loans to meet all capital and operating costs, with Shandong Gold to receive 20% of after tax profits.

EnviroGold was to manage the project but Shandong Gold was to second suitable key technical and administrative staff to the joint venture and provide infrastructure.

The Shandong operation was considered to have the potential to produce approximately 60,000 ounces of gold per year

However, the Shandong project didn't eventuate, or at least not yet. In EVG's annual report for the year to June 2008, it was noted that "no additional work was carried out in China while the company focuses its efforts in the Dominican Republic and Peru."

Likewise, in the quarterly report to June 2008, it was stated "No additional work was carried out in Shandong with the prospect put on hold pending the commencement of the Las Lagunas Gold Project."

Is the Shandong project dead and buried as far as EVG is concerned, or does EVG hope to revisit it once it gets its other projects underway? If the latter, will Shandong Gold's door still be open to EVG? Would EVG retain any competitive advantage in the use of the Albion process, given how much time has passed?

Even if Shandong Gold is no longer on EVG's radar, it's an illustration of the scope of EVG's market opportunities, because there are many other gold tailings dumps to be found around the world.