Sawayaerdun Gold Project
GobiMin holds a 70% equity interest in Xinjiang Tongyuan Minerals Limited (“Tongyuan”) through a wholly-owned subsidiary. Tongyuan is the holder of the mining and exploration licences of the Zone I and Zone IV mine site of the Sawayaerdun Gold Project (the “Gold Project”) covering an area of 1.7094 km2 and 20.27 km2 respectively.
Project Background & Location
The Gold Project is located 200 km northwest of the city of Kashi, western Xinjiang, PRC and lies within the Tian Shan Gold Belt, which is one of the most promising gold belts in China. The property is accessible from Kashi via Wuqia (烏恰) to Wulukeqiati (烏魯克恰提) by 200 km of paved road and then 38 km by highway from Wulukeqiati. Adequate water supply from the Sawayaerdun River is available to the property.
NI 43-101 Resource Estimates announced in April 2015
*1 Troy Ounce = 31.10348 grams
1. Resources estimate updated according to the NI43-101 guideline and prepared by Qualified Person as a defined in the NI43-101, Mr. Bin Guo in April 2015.
2. CIM definitions were followed for Mineral Resources.
3. Mineral Resources are estimated at cut-off grade of 1.0 g/t Au using the cut gold composite values.
4. Figures reported are rounded which may result in small tabulation variances. Weighted average are used to report average gold grades.
Mineralisation and Deposit Type
The main zones of mineralization have been defined within the project area, and are referred to as Zone I and Zone IV. The mineralized domains generally consists of low to medium grade gold mineralization developed within quartz filled ductile shear zones formed within a meta-sedimentary sequence. The Zone IV domain is approximately 3km long and has been defined to a depth of 700m. This is the most continuous zone so far defined within the project area. The defined mineralized domains dip at between 60° and 80° toward the northwest and therefore strike northeast. Mineralized zones can range from less than 1m to 50m in thickness.
Exploration activities have been carried out in the project area since 1952. Stream sediment sampling in the 1980’s lead to the discovery of the deposit in 1985. The deposit has been subject to multiple phases of exploration including surface mapping, diamond drilling, trenching and underground development via adits, cross cuts and strike drives. During 2014, a further 41 diamond holes were drilled primarily into Zone IV to further define the continuity of mineralization and to upgrade inferred material to indicated and measured.
GobiMin will continue to focus on applications for conversion and renewal of the exploration and mining licences. Up to now, two of the three required Chinese standard geological reports for the conversion application have been approved. The third report concerning the development plan is under schedule of preparation. GobiMin has also progressed with the application for renewal of the existing exploration and mining licence which was expired in February 2017. In addition, we are working towards the preparation of an updated NI 43-101 mineral resource estimate for the Gold Project. GobiMin will keep seeking potential investors for the Gold Project.