Hi Julius, here are the details of the PXI project in China-
In this press release it says the Wulanbulang property has an area of 52.57 square kilometres.
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2003-11-24 07:16 ET - News Release
Mr. Ranjeet Sundher reports
PLANET OPTIONS CHINA GOLD PROJECT
Planet Exploration has signed an agreement to acquire an 80-per-cent interest in the Wulanbulang gold property, as well as an option to acquire three mining licences and a mill located within the property. The property is located in the Jiuyuan district of Baotou, 20 kilometres from the city of Baotou, which is 600 kilometres west-northwest of Beijing.
Planet's agreement is with the China National Gold Group Corporation, represented by its subsidiary Jinyou Geological Exploration Ltd. (the CNGC). The CNGC was formed in 2003 as a result of a privatization initiative of the Chinese government. The predecessor organization to the CNGC was formed in 1979 as a professional gold mining company headquartered in Beijing, owning eight provincial gold mines and controlling 15 operating partnerships. CNGC controls 61 gold-mining-related subsidiary enterprises throughout China. One of the subsidiary enterprises, Jinyou Geological Exploration Ltd., is the vehicle through which CNGC forms and operates its joint venture agreements.
The Wulanbulang property has an area of 52.57 square kilometres. Previous work by the Chinese government has indicated the occurrence of over 70 gold-bearing veins/zones identified to date, 35 of which are described as being "strongly" mineralized. The zones consist of varying degrees of quartz veining, potassium feldspar alteration, silicification and sulphide mineralization within east-west-trending shear zones. Toward the west of the property, the zones trend more northwest-southeast. Where the main east-west trend intersects with northeast-southwest and northwest-southeast-trending structures, the gold mineralization is described as being typical of Canadian Archean gold deposits and suggests that the gold may be concentrated in linear "shoots." This will be considered in any future exploration by Planet.
Within the area of the exploration licence are three mining licences and a mill, which currently host small-scale operations -- these are known as vein 12, vein 14 and vein 78. Each mining licence has an area of 0.5 square kilometre, and is described as being narrow but long (veins 12, 14 reportedly cover seven kilometres of strike length of the same zone, with vein 12 being the western extension and vein 14 being the eastern extension). Grades are reported to average 5.5 grams per tonne. The vein 12, 14 and 78 licences, as well as the mill, are included in Planet's option agreement as it represents excellent potential for early cash flow with easy access.
Ranjeet Sundher, president of Planet, states, "Given the abundance of mineralized and altered shear zones, including several producing areas, the Wulanbulang property would appear to offer good potential to host larger-scale economic gold mineralization."
Mr. Sundher adds, "Mining licences at vein 12, 78 and 14 being included with the exploration licence, offers large upside, part of our exploration program will involve diamond drilling of these zones to expand them both at depth and along strike, as they are currently open in these directions."
Terms of the deal call for Planet to make cash payments totalling $600,000 (U.S.) over three years to earn an 80-per-cent interest in the Wulanbulang project. Planet is required to finance a minimum $500,000 (U.S.) exploration program over three years. Planet also has been granted a option to purchase 80 per cent of the three mining licences and mill. The terms of the option call for Planet to first earn its interest in the exploration property, once this is done Planet can purchase the 80 per cent in the mining licences and mill for $1.8-million (U.S.). |
