HONG KONG, Sept 18, 2009 - (ACN Newswire) - One of the PRC's leading gold production enterprises, Zhaojin Mining Industry Company Limited* ("Zhaojin Mining" or the "Company", stock code: 1818, together with its subsidiaries, the "Group"), is pleased to announce that the Company has entered into an Integration Agreement with Tuoli County Government, Xinjiang on 3 September 2009, in order to boost the local economy of Tuoli County, Xinjiang and to develop the gold resources in the jurisdiction.
Pursuant to the agreement, the two parties will follow the basic principles of "forward-looking, accurate corresponding, implementing in stages, governing in order and continuous improving", while Zhaojin Mining will integrate the gold resources within the region of Tuoli County. The Company will invest approximately RMB500 million in resources integration in the next three years, in order to finance the relevant exploration and construction. Leveraging on the technology and management competitiveness of the Company, and the advantages on region, policies and mineral resources of Tuoli County, Xinjiang, it is expected that the volume of mining and ore processing of the Company in Tuoli County will reach 5,000 metric ton per day.
The Company has set up in Tuoli County, Xinjiang, its wholly-owned subsidiaries, Tuoli Zhaojin Beijiang Mining Co., Ltd* ("Tuoli Zhaojin") and Xinjiang Xingta Mining Co. Ltd.*, and Tuoli Zhaojin's subsidiary, Aletai Kunhe Zhaojin Mining Co. Ltd.*. The Company has established a gold mining and smelting chain with sound system and advanced technology in Xinjiang, especially in the Northern Xinjiang. This resources integration was fully supported by Tuoli County Government, and the Company was selected as the only cooperation partner in respect of the resources integration, which helps laying a solid foundation and creating a favourable environment for the Company's external development in Xinjiang.
Mr. Lu Dongshang, Chairman of Zhaojin Mining Industry Company Limited said, "With the advantages on region, policies and mineral resources of Tuoli County, Xinjiang, the Company is expected to establish a gold flagship enterprise with the largest scale and the greatest effectiveness in Xinjiang. Going forward, we will continue to seek opportunities for integrating resources in order to further boost gold output and maintain profit growth. We strive to become the national and global leading pure-gold producer, while providing the best possible returns for our shareholders."
About Tuoli County, Xinjiang
Tuoli County, Xinjiang, located at the northwest of Xinjiang Province, belongs to the Tacheng Region of Xinjiang. With a total area of 21,300 square kilometers, it is rich in mineral resources, especially gold resources. Its has a long history of exploration and mining. There are 187 gold mines within Tuoli County, with approximately 500 tons (approximately 16,075,370 ozs) of gold reserves and the average tenor of gold mines of 3-12 gram/ton. In 2008, the gold output in Tuoli County reached 2,900 kilograms (approximately 93,237 ozs) and thus Tuoli County has become the "No. 1 gold county" in Xinjiang.
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Ms. Keely Chan
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Ms. Kylie Yeung
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Sept 18, 2009 17:17 HKT/SGT
Source: Zhaojin Mining
Topic: Press release summary
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