DUSHANBE, November 12, 2010, Asia-Plus — China’s gold mining company, Zijin Mining, which assumes the 75 percent ownership interest in the joint gold mining venture, Zeravshan Gold Company (ZGC), shows interest in the Mosrif gold ore field located in Panjakent district in Sughd province, according to the Main Geology Directorate under the Government of Tajikistan.
The source says specialists from the Main Geology Directorate are currently conducting exploration survey in Mosrif.
“Zijin Mining is ready to invest in one of gold deposits of the Mosrif gold ore field. According to our specialists, five gold deposits are located within the Mosrif field. However, it is just an intention of the company, but it is quite possible that Zijin Mining will submit its proposals within the next few years. Meanwhile, they are continuing to develop their deposits and plan to increase annually production of gold to 7 tons by 2015,” said he, “The findings of our exploration show that one ton of Mosrif field’s ore contains around one gram of gold.” “In Soviet times, a deposit was considered unprofitable if one ton of its ore contained less than 2 grams of gold, but today taking into account increasing gold prices they develop even deposits with 0.5 gram per one ton of ore.”
According to Tajik specialists, the Mosrif gold ore field has the possible gold reserves of around 75 tons, the source added.
At least 5 million U.S. dollars are needed as an initial investment for exploration and development of the Mosrif field.
ZGC was launched as a joint venture with Nelson Resources Ltd (44%) and the Tajikistan government (51%) and the IFC (5%) in 1994. In September 2002, Avocet signed a heads of agreement to acquire the Tajik gold assets of Toronto-based Nelson Resources Ltd held through Nelson”s subsidiary, Commonwealth and British Minerals Ltd. The assets included a 44% interest in Zeravshan Gold. In November 2004, Avocet increased its equity interest in ZGC from 49% to 75%. In late July 2007, Avocet sold its equity stake in ZGC to Zijin Mining.
ZGC owns gold mining and exploration rights to a 300,000-hectare area near the town of Panjakent in northern Tajikistan.
