re: +jinya gold project sfjv signed - drilling und Thanks...

re: +jinya gold project sfjv signed - drilling und Thanks MiningNews.net

Michelago wins rare approval

Andrea Hayward


Friday, June 18, 2004
MICHELAGO has taken the road less traveled in China, creating a fully owned Chinese subsidiary to explore gold and base metals in the Xinjiang autonomous region.

The company was granted a Wholly Foreign Owned Enterprise to form Michelago Xinjiang Mining Exploration and Development Ltd, after lengthy negotiations.

Michelago company secretary Heath Roberts claimed the WFOE was one of the first of its kind obtained by a foreign gold explorer in China and will allow Michelago to undergo exploration for gold and base metals over five separate projects in Bole County, adjacent to the Kazakhstan border.

The approval includes a first right of refusal to review, explore and develop any other deposits within the region's 1,700sq.km area, discovered by the Land and Resources Bureau.

Roberts told MiningNews.net negotiations had taken the better part of a year and a half.

"Taking the step to create a 100% owned company, we have taken a different road map to the joint venture operations," he said.

"We have been watching other companies so we are not going out on a limb and Peter Secker has learned a lot through his time in China and with Sino.

"It's fun to be a trailblazer sometimes but it has its own risks."

Michelago has been provided with data on five known gold and copper projects – HeShanTou, AerTaKeSai, KaLaSayi, AlaTan and HuSuMuShaLa, for which they have applied for the exploration rights.

An initial field assessment has been completed and a drilling program is scheduled to commence on two priority targets in late July.

It has been a busy year for Michelago in China. In May shareholders approved the acquisition of an 82% interest in the BioGold facility in the Shandong province.

As well as BioGold, Michelago holds a 60% interest in the Junya gold project, a 90% interest in the Guangxi gold exploration project, and a 51% interest in the Jincheng gold project.

Shares in the company were trading marginally higher at 8.2c this morning.