GobiMin Acquires Interest in a Zinc-Copper Property in TibetPublished by MAC on 2006-06-01
GobiMin Acquires Interest in a Zinc-Copper Property in Tibet
1st June 2006
Toronto (Canada) May 29, 2006 - GobiMin Inc. (the "Company" or "GobiMin") (TSX VENTURE: GMN) is pleased to announce that it has acquired through its 97%-owned Chinese subsidiary a 30% equity interest in Tibet Dazi PuXiong Copper Company Limited ("PuXiong") which owns the exploration license of the Malonglang copper-zinc project located in Dazi County, Tibet Autonomous Region of the People's Republic of China.
The aggregate consideration for the acquisition is RMB13,000,000 (approximately US$1,625,000) in cash, which was fully settled through the available resources of the Company.
The Malonglang project encompasses an area of 26.9 square kilometers. It is located 20 kilometers east of Lhasa, the capital city of Tibet and is easily accessible by paved roads. Previous exploration work by PuXiong comprised geological mapping, 1,260 cubic meters of trenching, and six levels of drifting. To date, eight lenses of copper-zinc mineralization have been outlined, ranging from 600 to 1,000 meters in length with an average width of 4.2 meters. Skarn-type mineralization is associated with sphalerite, chalcopyrite, galena and pyrite. Limited sampling data from the trenching and drifting indicate grades ranging from 3.1% to 11.7% zinc and 0.6% to 6.8% copper.
PuXiong just completed the construction of a 500 tonnes per day mill located approximately 8 kilometers from the project site. PuXiong is expected to apply for a mining license in September 2006 upon completion of an exploration report for the project. Their plan is to start mining operations after obtaining the mining license.
Felipe Tan, CEO of GobiMin, commented on this transaction: "We look forward to working together with Puxiong to unlock the economic potential of the Malonglang project, which shall provide us an opportunity to expand beyond our nickel-copper project in northwestern China. This acquisition is in line with the Company's objective of bringing value to its shareholders."
The data reported in the press release is historical in nature and has not been verified by the Company. Mr. John Guo, Senior Geologist of GobiMin, Qualified Person as defined per NI 43-101, has reviewed the content of this release.