Minco Gold Corporation is pleased to announce that the Company, through its wholly owned subsidiary, Minco Mining (China) Co., Ltd. (“Minco China”), has entered into a Joint Venture Agreement (the “JV Agreement”) with the 208 Exploration Team (the “208 Team”), a subsidiary of China National Nuclear Corporation (the “CNNC”), to acquire 51% equity interest on the Tugurige Gold Project located in Inner Mongolia, China. gold mining equipment
Under the terms of the JV Agreement, the 208 Team will set up a new entity (the “JV Co”) and transfer its 100% interest in the Tugurige Gold Project into the JV Co, Minco China has the right to contribute a total of RMB 250 million (approximately C$37 million) (the “Earn-In Amount”) to earn a 51% equity interest in the JV Co, with RMB 180 million (approximately C$27 million) to be contributed by the end of March of 2011. The Earn-In Amount is subject to an independent evaluation of the value of the Tugurige Project. To secure the project, Minco China has provided RMB 60 million (approximately C$9 million) in the form of a secured short term loan to the Tugurige Gold Mine. The short-term loan is secured by all the assets of the mine, including the mining licenses and exploration permits. Minco China has the right to convert the loan into its contribution to the Earn-In Amount upon appropriate approvals obtained.
A uranium producer plans to build a mill outside this town to service several uranium mines in western Colorado and eastern Utah.
Energy Fuels Resources Corp., based in nearby Nucla, owns mines near Gateway and in Utah between Moab and Blanding.
“One of the things this area lacks is a uranium mill,” said company President George Glasier said. “But what we really need is a mill that’s closer to the actual mines we’ll be producing from.” mobile crusher
The facility has been planned to be built within three years next to the U.S. Department of Energy site just outside of Naturita, Glasier said. The company will have to wait about two years for the state to license the mill and then spend nine months constructing it.
About 100 people will be employed to operate the mill, Glasier said, and additional mines could be opened in the future to extract more uranium, which has roughly tripled in value from $15 per pound since 2002 and could hit $60 early next year. The only existing mill in the area, in Blanding, Utah, is operating at capacity.
Rare earth minerals are used in a wide variety of applications including catalysts for the oil refining industry, neodymium-iron-boron magnets which are used in high energy electric motors like those used in hybrid vehicles, and new high energy battery applications. Mountain Pass is the only significant developed commercial rare earths resource in the western world with enough resources to provide significant levels of global supply for 30 to 50 years. Located about 50 miles south of Las Vegas, Nevada, the operation has produced and sold rare earth products continuously since 1951. In 2007, Chevron Mining Inc. commenced rare earth separations operations using lanthanum concentrates from existing stockpiles to produce didymium (a combination of neodymium and praseodymium) and lanthanum products.
The primary physical assets at Mountain Pass include the mine and ore resources, a flotation mill, and a specialty plant which refines the milled concentrate. Mountain Pass also has large stockpiles of bastnaesite concentrates located on the property. The Mountain Pass operations have an experienced and highly skilled work force, including on site operations personnel and a rare earth research and development team. spring cone crusher