CHINA LATEEGRA RESOURCES of Vancouver plans to acquire an initial 70% stake in the Jinjishan (Golden Pheasant Mountain) mine in Louning County of Henan Province. The Jinjishan property hosts six mineralized zones, one of which is currently in production at a rate of 100 tonnes/day. Lateegra holds an exploration permit for the other zones.
Lateegra will conduct a four-week due diligence program in July. It will include a check sampling campaign, survey of the mine workings, exploration tunnelling, and down-dip drilling to establish the quality of the mineralization. As proposed, Lateegra and the Jinjishan joint venture would form a Sino-foreign co-operative company which the Canadian partner would fund (US$1 million by Oct. 31 and another US$1 million by Dec. 31, 2004).
The purpose of the agreement is two-fold. First, the existing underground mine will be optimized and expanded. Second, a thorough exploration of the licence area will be conducted with the aim of developing any other economically viable veins.
Lateegra has interests in three other properties near the Eskay Creek and Kemess mines in British Columbia. Details are available at www.lateegra.com.