China Mineral Company (“CMC”), a private enterprise formed in 2007, is already exceeding investor expectations. CMC was sanctioned by the Chinese Government to extract precious metal from a site in the Gansu Province. The site the company has been granted permission to mine lays just 8 kilometers from the Yashan gold mine in Wen county, the largest operating gold mine in China.
At the beginning 2007, four drill holes had already been completed, and assay results from this drilling indicated broad, low-to-medium grade gold mineralization over an extensive area. As a result of these tests, the Company signed financing agreements with Barclay’s Capital and Banco Santander in order to commence operations. Gold minding was opened to foreign investment in China during 1994.
There are already several other operating gold mines in the vicinity, which is known as the “Golden Triangle”. While earlier surveys indicated that the site could hold as much as 20 tons of gold, the latest tests conducted by independent geologists have indicated that there may be 200% to 300% as much.
