CHINA - Asia Now to undertake evaluation of Beiya
Published: Tuesday, 26 February 2013 10:03
Asia Now Resources will carry out a strategic evaluation at its Beiya Gold-Copper Project in Yunnan province after independent exploration at the site has identified poor rock mass and quality.
Independent contractor Resource and Mining Development International (RMD) examined specific aspects of the project including ground conditions. Its preliminary observations in respect to budgeting and future work such as the preparation of a definitive life of mine plan have pointed to large capital expenditures.
The examination notes future underground mining activities may require significant capital funds due to the high degree of ground support that may be needed. An open pit mine could also require a large pre-strip ratio.
RMD says site visits and a review of the data and site conditions have confirmed very poor ground conditions and rock mass quality. The rocks also have a high fracture density and low quality designation.
Asia Now's chief executive officer Harold Shipes says, "RMD referenced that due to these factors, expenditure required for the development of an underground or open pit mine at Beiya prior to production may be higher than other deposits comparable in size to the Beiya project.
"Based on these observations RMD concluded that any decision for a mining option would require further detailed work to clarify the project viability; methods of underground mining would require review in detail; and any further work would require significantly more drilling to obtain sufficient detailed information in order to make a decision on methodology and viability." He says the company's Board and management will continue to evaluate the options at Beiya.
The project is one of two gold-copper properties Asia Now is exploring in Yunnan province. It is 60km north of the city of Dali, which is a short flight from the provincial capital Kunming. There are several daily flights, a railway and a paved highway between the two cities.
www.asianow.ca
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