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Oct 2003 - Michelago Limited

Michelago Limited (MIC) – Producing >120,000zpa of Attributable Gold from About June 2004

  • The signing of a Letter of Intent (LOI) in Laizhou City, Shandong Province, PR of China on 23 September 2003, paves the way for Michelago (MIC) to acquire 51% of Shandong Tarzan Bio-Gold Co Ltd’s (BioGold) treatment operations. Which enables MIC to potentially produce >120,000ozpa of attributable gold from about June 2004 (depending on the timing of signing the Sino Foreign Joint Venture).
  • In addition, MIC signed an LOI with Laizhou Jincheng Gold Mining Company Ltd (Laizhou Jincheng, the parent company of BioGold) for an exploration JV in which MIC may earn a 51% interest in any gold resources below 500m from surface in an area of 10 sq km in the Jiaodong Peninsula of Shandong. The area includes the 3 small underground Jincheng mines that produce a total of ~25,000ozpa at a gradeof ~4.7g/t to 5.0g/t, and some strike extensions.
  • BioGold’s current treatment operations consist of an expanding biox plant that is currently producing about 70,000ozpa from refractory ore, a cyanide-leach plant producing about 130,000ozpa from non-refractory ores, and a 51% owned refinery that also produces about 100,000ozpa from dore, or a total of about 250,000ozpa currently attributable to BioGold for which MIC’s 51% should be >125,000ozpa.
  • MIC is still progressing with its SFJV to acquire a 60% interest in two joint ventures with 40% held by Laizhou Jincheng in the Jinya Gold Mine and nearby Exploration tenements located in the Guangxi Province of Southern China. Initial indications are that indicated and inferred resources to a depth of 280m could be 0.5moz at 5g/t. However, MIC appears likely to undertake further drilling with a view to extending the resources based on ideally producing 60 to 70,000ozpa and a higher ROI instead of 40,000ozpa.
  • Written by: Keith Goode
  • Friday, 03 October 2003

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