The Asia Miner

OCT-DEC 2015

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

Issue link: https://asiaminer.epubxp.com/i/582550

Contents of this Issue

Navigation

Page 59 of 71

58 | ASIA Miner | October-December 2015 Chinese Investment Abroad ANGKOR Gold Corporation has entered into a strategic partnership with Beijing Ex- plo-Tech Engineering Co (BETEC) of Chi- na to further Angkor's geophysical survey programs in Cambodia. BETEC's work has been instrumental as Angkor moves its Halo and CW prospects to a level of international interest. The partnership follows a consulting agree- ment for work completed during the 2014/15 work season that saw BETEC's team of geol- ogists and geophysicists extend the induced polarization (IP) and geological feld recon- naissance work. Angkor's seven exploration licences in Cambodia cover 1448sqkm, which the company has been actively exploring for six years. Angkor has covered all tene- ments with stream sediment geochemical sampling; has fown low-level aeromagnet- ic surveys over most of the ground; drilled 21,855 metres of NQ core in 190 holes; and collected in excess of 110,000 termite mound, and 'B' and 'C' zone soil samples in more than 20 centres of interest over a combined area of more than 140sqkm, in addition to numerous trenches and detailed geological feld mapping. The partnership agreement consists of a mixed compensation package for work by BETEC. Payment takes the form of an equal split between equity in Angkor's Canadian parent company and fees-for-service. This will add to BETEC's existing equity in Angkor which it has held since June 2014. Tohui Beishan Group also has an equity stake in the company. The initial work program value will be Can$575,000 split equally between shares and dollars. This may be extended with follow-up programs like drilling contingent upon the preliminary work. Work will be- gin at the start of the 2015 dry season in November as weather permits. BETEC will provide geological mapping, IP gradi- ent array survey, gravity survey and anal- ysis support across a number of Angkor's prospects. BETEC chairman Zhuangwei Luo said, "We see signifcant potential in Angkor's group of assets in Cambodia, and we have been very pleased with our working relationship with the Angkor team. It is my hope that the agreement bolsters both our companies as we invest into one another's future operations." BETEC lead geologist Qinghong Han said, "BETEC is committed to working with Ang- kor not solely as a client, but as a business partner. Our plans for Cambodia are evolv- ing, and we have agreed to a combination of fees and equity to leverage BETEC's technology and expertise. I believe that there are very few geologists who have had the opportunity to work on such targets as Halo and CW." NORTHERN Minerals has signed a Memorandum of Understanding (MoU) with Jien Mining in relation to offtake from Browns Range Rare Earths Project on the border of Western Australia and the Northern Territory. The project will focus on delivery of dysprosium and Northern aims to be the frst signifcant world producer of this element outside of China. Under the MoU, Northern agrees to sell and Jien agrees to pur- chase 50% of the project's offtake on terms, including price and product specifcation, to be fnalized in a defnitive offtake agree- ment. This undertaking includes an exclusivity period over this inter- est ending at the earliest on June 30, 2017. As part of the MoU, Northern and Jien have commenced dis- cussions to agree on joint marketing of their respective shares of product under a commercial structure. In early August Jien received advice from the Australian Govern- ment's Foreign Investment Review Board (FIRB) that it has no objec- tions to its $49.5 million investment. This follows an announcement in July confrming that Jien was satisfed with its due diligence. Fol- lowing the FIRB's advice and with all necessary material lodged with relevant government authorities in China, Jien said the fnal Chinese regulatory approval could now be progressed. Browns Range has a number of deposits and prospects contain- ing dysprosium and other heavy rare earths, hosted in xenotime mineralization. This facilitates the use of a relatively simple and cost effective processing fowsheet to produce a high value, high purity dysprosium-rich product. Dysprosium is an essential ingredient in the production of neo- dymium iron-boron magnets used in clean energy and high tech- nology solutions. As a result of increasing global demand for these applications dysprosium supply is critical. Completion of a defnitive feasibility study (DFS) in February 2015 confrms the project is economically and technically viable. Construc- tion is targeted to commence in 2016, followed by production in 2017 to produce a high purity mixed rare earth carbonate for export. Northern's managing director George Baulk said, "Following DFS completion our focus has been on marketing, fnance and project approvals. To support our marketing efforts we have expanded the marketing team and have extended our product offerings to include the sale of individual oxides and metals, as well as a mixed rare earth carbonate. This has opened doors to a new range of possibilities and allows us to diversify our potential customer base. Of major signifcance is the potential for additional revenue through the sale of lutetium." Rare earths offtake MoU with Jien Angkor Gold's tenements in prospective eastern Cambodia. Angkor in geophysics partnership

Articles in this issue

Archives of this issue

view archives of The Asia Miner - OCT-DEC 2015