TORONTO, March 23 /CNW/ - Gold World Resources Inc. (GDW-TSX-V), ("GWR" or the "Company") is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with Guizhou Rong Huai Investment Development Ltd. ("GZRH") for the acquisition of the 100 tonne/day capacity, operating, Jin Yin Dong Gold Mine ("JYD Mine"). The MOU was signed at GWR's headquarters in Toronto during a recent visit of the majority owner and representative from GZRH.
Subject to the signing of a formal contract, GWR, as majority holder, and GZRH agreed to establish a Cooperative Company ("CC") to jointly exploring, developing and mining (production) the gold mineralization of the 41.2 km(2) property of the JYD Mine.
The fully permitted operating mine is the product of a recent consolidation of three adjacent mines. The mine has an Exploration License; a Mining License; a Gold Mining Certificate (production license) and a Business License. All licenses are current.
- The 17.8 km(2) Mining License is included in the 41.2 km(2)
- Geologically, the mine is located on the gold rich Nan Hua Fold Belt
and is a quartz vein type gold deposit. The Jin Jing Gold Mine, which
is located approximately 20km away from the site, has reportedly
produced approximately 20 tonnes of gold (640,000 ounces) during the
last 4 years.
- The JYD Mine's gold grades, due to the nugget effect, fluctuate
between 3.12 g/t to 140.7g/tonne according to private and government
reports. The average grade of the Chinese Standard Resources of the
mine (332+333+334 categories*) is 16.34g/tonne.
- Historical diamond drilling on the mine property identified a
"historical resource" of 904kg* of gold (approximately 30,000
ounces) as determined by the Chinese System.
- The mine has good access roads, available grid power and milling
facilities for gravity separation of the coarse gold from the quartz
The Company believes that the size of the property, the showing of numerous adits from previous mining activities, the indicative gold grade and the presence of three existing mines make the JYD Mine an attractive acquisition for GWR. Management of GWR sees the acquisition of the JYD Mine as one more step in the Company's strategy to become a mid-size gold producer by accumulating a number of small-scale producing gold mines in China, where the Company can apply its mining and exploration expertise to define reserves, upgrade productivity and gold recovery in order to create value for shareholders.
The Company will provide continuing disclosure on the MOU as final details are confirmed.
The Company is exploring for precious metals in China and recently announced that it had attained a full 70% interest in Hebei Ming Yu Mining Corporation.
* Note: A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
ON BEHALF OF THE BOARD
Chairman & CEO
Gold World Resources Inc.
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Securities Act (Alberta), including statements concerning Gold World Resources' plans for the Property, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gold World Resources, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Gold World Resources Inc.
For further information: For further information: Hermann Derbuch, P.Eng., Tel.: (416) 594-9888, Fax: (416) 594-1967