Shaanxi Project Description
Being the largest importer of gold in the world, and the world’s largest consumer of gold, the Chinese gold mining sector is also the world’s largest national gold producer. According to the China Gold Association, China produced 453.5 tons of gold from mining operations during 2016, maintaining its pole position as the world’s largest gold producer for the 10th consecutive year. Most of this gold production comes from direct gold mining, however, about 10-20% results as a byproduct of other non-ferrous mining.
Chinese annual gold mining output has grown by 62% since 2007, and first exceeded the 300 tons level in 2009, followed by the 400 tonne level in 2011. By 2014, it had reached a record 478 tonnes of gold output. In early 2017, the Chinese Ministry of Industry and Information Technology stated that the nation plans to boost annual gold output to 500 tonnes per year by 2020. This would mean gold production growing by an annual average 3% over the 2017-2020 period.
Shaanxi Project – is located approximately 1,000km South-West of Beijing. A high-grade gold discovery that covers an aggregate of 65km2.
Yan'an, Shaanxi, China
Plan view showing Project Open Pit, stockpile, trenches and drill hole locations.
OPPORTUNITIES TO ENHANCE SHAANXI DEPOSIT
POTENTIAL OPPORTUNITIES TO ENHANCE SIZE AND GRADE
Permit constraints in 2016 and 2017 allowed no step-out drilling, which significantly impaired ability to grow resource. New permit (February 2018) allows step-out drilling in areas open to mineralization that are immediately adjacent to Deposit, including:
Hole 22 DSP 337 which intercepted 85.4m of 2.50 g/t Au and is wide open to northwest of Deposit
Hole 21 SDP 275 which intercepted 24.4m of 4.33 g/t Au and is open to southeast of Deposit
A large amount of unclassified mineralization lies outside of the pit due to undrilled gaps in model, etc.
Approximately 20 holes drilled in past two years identified higher grade mineralization in sill and sedimentary units underlying main Deposit; additional drilling stepping off these holes create opportunity for better grade and size
The majority of the property remains undrilled or incompletely tested, including approximately 5 km of strike along the main controlling fault.
SHAANXI: 2017 ACCOMPLISHMENTS
Drilling: Completed 8,000m, 27-hole drill program (25 exploration holes and 2 metallurgical test holes). Holes included 149.8m @ 1.68 g/t, 110m @ 0.90 g/t Au and 83.1m @ 1.10 g/t.
Regional Exploration: Soil and Stream Sediment Sampling: Completed program of over 2,500 soils, rock chip and stream sediment samples. o Geophysics: Completed a 434-line km ground magnetometer survey (412-line km at main block and 22-line km at Gold Knob claims).
Expansion of Land Position: Regional exploration program resulted in direct staking of 190 claims to cover new Gold Knob target discovered to NW of main claim block where fine-grained crystalline gold has been discovered at Miners Creek that include hits of 0.56 g/t Au and 0.16 g/t Au in stream sediment sampling.
2017 drill intercepts include 129.4m of 1.66 g/t Au including 24.4m of 3.45 g/t Au, 73.1m of 1.13 g/t Au, 110.6m of 0.90 g/t Au, 65.5m of 1.21 g/t Au and 62.5m of 1.11 g/t Au, 24.4m of 4.33 g/t Au and 53.3m of 1.23 g/t Au, 137.2m of 0.91 g/t Au, 118.9m of 1.41 g/t Au
Shaanxi Deposit remains open to southeast (step-outs off 24.4m of 4.33 g/t Au) and northwest (step-outs off 85.4m of 2.5 g/t Au)