Chihong Zn & Ge Purchases 50% Stakes in Its Joint Venture

SHANGHAI, May 13 (SMM) - Chihong Zn & Ge announced that its wholly-owned subsidiary Chihong Canada Mining signed a contract with Selwyn Resources on March 4 that the company will purchase a 50% stakes in the Selwyn Chihong Mining.

The joint venture owns 1,604 mineral, mining and lease permits, with total mining right area of 348.88 skm. Calculated with the NI43-101 standard in September 2012, the Selwyn project has control level reserves of 186 million mt when the cutoff grade is 2% for zinc, with the average grade for zinc of 5.20%, and the average grade for lead of 1.79%; the speculative grade reserves are 238 million mt, with the average grade for zinc of 4.47%, and the average grade for lead of 1.38%. The project is one of the five largest undeveloped lead/zinc deposits in the world.