Wednesday, 26th March 2008 (1247 views)

East Delta Resources has announced that it has restarted mining activities at the Huaqiao Gold Mine Guizhou Province in China.

The firm reports that gold production from this site is forecast to provide the firm with its first quarterly revenue by the end of the second quarter of this year, while the company has an agreement to purchase up to 77.4 per cent of this mine.

"Mining operations had been shut down to allow for refurbishing of the mine's 100 tonne/day capacity flotation type mill," East Delta reports.

It adds that it had provided funding and spent over $500,000 (£252,345) in licensing costs, replacement equipment, expert support personnel and manpower.

The mine covers an area of around 0.7 sq km and has seven known gold-bearing quarts vein zones occurring in different strata with varying mineralisation characteristics.

East Delta announced that it had completed the necessary funding to reopen the mine last November, reporting that it intends to start production at a low rate before increasing it to full capacity over a period of three months.

 

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