Orchid goes to TibetPublished by MAC on 2004-06-10
At the beginning of this year, the Australian mining company, Sino Gold, withdrew from exploration in Tibet, following concerted campaigning by human rights groups. Not to be deterred, Orchid Capital, which raises venture funds from German as well as Australian investors, has just announced it will take up where Sino was forced to leave off. Renewed international oppostiion is sure to follow.
Orchid goes to Tibet
MiningNews, Andrea Hayward
June 10, 2004
ORCHID Capital has emerged as a gold exploration front-runner in Tibet after entering into a joint venture agreement with the China Tibet Institute of Geology Survey.
Orchid will fund up to US$17 million of exploration and feasibility work over seven years for its 70% stake in a new company Orchid Tibet Mining Co.
An initial investment of US$120,000 will be made to fund surface exploration at the Nagarze gold project, where surface trenching over a 200m-strike length has provided results including 10m grading an average 5gpt.
Joint managing director Alvin Tan said Orchid Resources would set precedents for exploration in Tibet, one of the first companies to sign a CJV in Tibet, the Xizang province of China.
"One of the main reasons Tibet hasn't been explored is because of a political reason at the borders," he said.
"I think being there has a pro and a con - we have the first advantage but there is no precedence and we will be the precedence setter."
Orchid has secured Telfer gold mine discoverer and former Ashton Mining and Newmont Australia CEO David Thyrwhitt to spearhead its exploration push in China.
Tan said Orchid would have to return to the market in the medium to long term to raise further funds after recently placing just over a million shares at 8c to fund the Tibetan investment in its initial stages.
Orchid Capital shares were trading at 8.3c at midday Thursday.