Business
Goldrea Resources Corp. - Potential purchase of operating Daye Gold Mine - China
Goldrea Resources Corp. - Potential purchase of operating Daye Gold Mine - China.
About this update from Goldrea Resources Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Jan. 12 /CNW/ - Goldrea Resources Corp. (GOR-TSX.V) reports\nthe company has entered into a Letter of Intent with Rushan City to purchase\nup to a 100% interest in their operating 1,750 TPD Daye Gold Mine located\napproximately 30 km northwest of Rushan City, Shangdong Province, China.\nGoldrea currently has the option to earn a 74% interest in mineral\nlicenses along strike and downdip from the Daye Gold Mill and open pit. Recent\ndrilling by Goldrea has established gold grade up to 8 grams per tonne gold\nover 4 meter widths 600 meters downdip and to the south of the existing open\npit.\nThe Daye Mine is currently operating from two declines and one shaft at\nthe open pit and is mining the remaining ore down to the 150 meter level where\nGoldrea's joint venture interest begins. Also the Daye Mine is processing ore\nfrom a small open pit grading 1g/tonne located 35 km from their existing\noperation. Material from other gold mining operations in the vicinity is also\nbeing custom milled for other mining companies in the vicinity. Production\nfrom the open pit averaged approximately 60,000 ounces/year before reaching\nthe end of the pit life.\nThe Daye Mine is owned 100% by the Rushan City municipal government and\nthe Letter of Intent grants Goldrea the right to carry out a due diligence on\nall of the Daye assets and an evaluation of the operation up to June 30, 2006\nwith negotiations and purchase of the Daye Mine and its interest in\nsubsidiaries of Daye by October 30, 2006. The potential purchase has resulted\nfrom a desire by China to privatize gold operations within the country.\nCurrently the Daye Mine has 701 employees including 125 mining technicians.\nHospitals and schools are within 1 - 3 km of the mine site with onsite\nbarracks for single employees. The rest of the employees are living within the\nsurrounding villages.\nThe purchase of the Daye Gold Mine would include interests in three other\nenterprises as follows:\n\n 1) Daye Gold Mine owns 25% of the sericite recovery operations from\n tailings located on the Daye mine site. The gold ore being mined\n on the Daye property reportedly contains approximately 25%\n sericite with a value of $45.00 US/tonne.\n\n The other interests are held by the Hunan Nonferrous Metal\n Research Institute as to 30% and Junze (Hong Kang) Investment Co.\n Ltd. for...