re: aj007 ~ recent downturn
Here's what Mining News had to say today re MIC.... Story Dateline is Nov. 25th, 2003
Michelago builds on its China land holdings
Michael Quinn
Tuesday, November 25, 2003 MICHELAGO has added further ground to its bulging Chinese portfolio after reaching agreement with authorities in the Xinjiang Autonomous Region of western China.
The deal covers 2700sq.km within 200km of the China-Kazakhstan border and includes four gold projects and one copper-gold project in an area surrounding the lower reaches of the Tianjanshan mountain belt.
Michelago said the initial focus would be the Halay, Assay, and He Tou mines.
While specific details of the projects and deal were scant, Michelago said it would be able to end up with 100% in the project area on an earn-in basis.
Work is expected to begin in the first quarter of 2004, with an initial budget of $500,000 anticipated.
The deal in Xinjiang follows a $6.27 million equity raising earlier this month, and is the latest of a number of deals signed over the last three to six months
They include the option to acquire a 51% stake in 300,000 ounce per annum gold producer BioGold for an undisclosed price, with due diligence expected to be completed by mid-December.
BioGold is majority owned by the Shandong provincial government, with Michelago also in the throes of forming a joint venture to earn a 51% stake in exploration ground in the province from BioGold's parent company Laizhou Jincheng.
However, most of the company's more recent attention has been on the 651,000oz Jinya gold project in Guangxi province, where it holds a 60% interest and where it is preparing an regional exploration and drilling campaign.
Michelago's stake is believed to have cost US$2 million, with the company considering development of a 330,000t per annum underground mine and flotation plant.
The capital cost attributable to Michelago has been put at around US$5 million, with operating costs for the 40,000ozpa refractory operation put at under US$200/oz.
Shares in Michelago were unchanged in mid-afternoon trade at 11.5 cents, slightly above the 11 cents the shares were issued at in the $6.27 million raising.
MIC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
