Business
VVC Exploration reports its first revenues from its Chinese Gold Joint Venture
VVC Exploration reports its first revenues from its Chinese Gold Joint Venture.
About this update from Vvc Exploration Corporation
[{"type":"text","content":"\n\n\n\n\nTORONTO, Jan. 16 /CNW Telbec/ - VVC EXPLORATION CORPORATION (\"VVC\" or the\nCompany\") announces that its Chinese joint venture company, Tong Guan Glory\nMining Corporation Limited (the \"CJV\") reports its first revenues since the\nstart its operations in July 2005. Production commenced in August 2005,\nfollowing in which the CJV poured the first gold bars derived from its Xing\nTong Gold Mine operations in the Shaanxi Province of the People`s Republic of\nChina.\nFor the 3rd quarter ending October 31st 2005, as reported in our\nfinancial statements, the CJV recorded gross gold sales revenue of CAD$815,000\n(5.5 million RMB) and a gross profit of CAD$490,000 (3.2 million RMB), from\nthe Xing Tong operations. At as of November 30, 2005, cumulative gold\nproduction reached 2,727 ounces and additional gold sales revenues amounted to\nCAD$370,500 (2.54 million RMB) representing a net gain of $243,000\n(1.67 million RMB) to the CJV for November. VVC is entitled to 60% of these\namounts and upon completion of its capital contribution will have earned a 70%\ninterest in the CJV.\nSince August, the CJV has shown a constant growth of its gold production,\nprincipally from acquisition of new gold bearing veins already in production\nand from new discovery as well. The CJV is currently finalizing the\ndevelopment of two new veins, the Q24 and the Q237, which were recently\ndiscovered on two of its seventeen permits. Mining of these veins is schedule\nto start by mid January. The additional ore from these veins will supplement\ncurrent production and permit the CJV's mills to operate near the full\ncapacity rate 450 tonnes per day. With sufficient additional increase in\nproduction the CJV will look to acquired new milling facilities later in 2006.\n\"At the start of the CJV, VVC was required to set-up new administration\nand production teams, as well as implementing new control over the day to day\noperations, and as such incurred one-time start-up expenses. In spite of those\nexpenses, the CJV managed to generate significant cash flow, enough in fact to\npay for the underground exploration and development of two recently discovered\ngold-bearing veins, Q24 and Q237, which will be in production in the days\nahead. The rising price of gold and the steady growth of production combined\nwith economies of scale over the coming mont...