Asia Now Resources says the Department of Land and Resources of Yunnan Province has granted two new exploration rights covering a total of 150 square kilometers to a joint venture company it controls.
"We are very pleased at receiving these new exploration rights, since the government selects only those foreign mining companies it judges to be competent for joint ventures in the Chinese mining industry," said Asia Now President Kaihui Yang. "This demonstrates the Yunnan government's strong support for our projects and allows us to explore aggressively for significant gold deposits without worrying about counter-productive competition in the area."
Yunnan is the only Chinese province that has been granted authority by the Chinese central government to issue mineral exploration rights to Sino-foreign joint venture companies. The two new exploration rights will be held by Yunnan Now Mineral Exploration Company Limited, a Sino-foreign joint venture company established by Asia Now and Yunnan Geology and Mineral Resources Company.
The new rights will be part of Asia Now's Beiya Project bringing the entire project area to 500 sq. km. The expanded project covers all of the known gold anomalies and major gold mineralization zones surrounding the Beiya gold mine, an operating open-pit operation wholly owned by YGMR that is currently undergoing an expansion designed to bring its annual gold production to more than 100,000 oz.
Asia Now's Beiya Project comprises five separate blocks: Beiya North, Beiya Far North, Beiya South, Beiya West and Beiya Northeast. Drilling is currently under way on the Beiya North block, which is north of and adjoins the Beiya Mine, and trenching is continuing at Beiya Far North, about 10 km north of the Beiya Mine, and Beiya West immediately west of the Bieya Mine. Asia Now is planning systematic exploration programs throughout the area, including a significant drilling program.
The Beiya Project involves two joint venture companies, both of which are controlled by Asia Now. Asia Now is earning a 70% interest in the joint venture with partner YGMR over most of the 500-sq.-km project and a 72% interest in a separate joint venture with partner Yunnan Non-Ferrous Geology and Mineral Resources Company Limited covering the Beiya North block only.
Asia Now Resources is a Canadian mineral exploration company focused solely on projects in China. The company has not yet proposed how it plans to ensure sustainable activities take place in the area it is mining.
