TORONTO, April 12 /CNW/ - Dragon Capital Corporation (TSX: AHD) (the
"Company") reported today on the current status and planned activities of
Arehada Mining Corporation, its 100% indirectly owned subsidiary based in
Inner Mongolia, China.
Arehada Mining Corporation has three distinct divisions of business and
assets: mining and processing division, zinc smelter division, and exploration
division. Arehada currently has 550 full time employees in the mining and
processing division, 213 employees in the smelter division and 12 employees in
the exploration division.
Arehada currently operates a brand new 1,500 tonnes per day (t/d) mining
and processing facility, to produce zinc concentrate and lead concentrate.
Silver and indium are credited with lead concentrates.
The mining and processing pilot division commenced in July 2006 and has
been profitable. The mining division is forecasted to generate significant
after tax income for the fiscal year 2007.
The operating mining and processing facilities include:
- underground mine accessed by three vertical shafts and one inclined
- mine facilities including hoist room, compressor house, ore transport
- tailings pond facility with water reclamation system;
- service facilities including heating plant, coal/fuel storage,
maintenance shop and assay laboratory;
- personnel facilities including offices, dormitory, dining hall,
clinic and change houses;
- site infrastructure including access road, water supply system
(8 wells), and electrical power transmission line with substation.
To date, capital expenditure for the mining operation is approximately
$19 million. At the current rate of 1,500 t/d, the company expects to process
44.2 tonnes of ore in fiscal year ending December 31, 2007. The existing
resources will be able to support 15 years of production at the current rate.
ZINC SMELTER DIVISION
Arehada plans to build a 100,000 tonnes per annum zinc smelter to process
zinc concentrates from smaller zinc mines in the region, with potential
processing for Mongolian zinc concentrates.
Phase I, with an anticipated 50,000 tons per annum production capacity,
is currently under construction. The module to process zinc calcine and
sulphic acid has been completed and fine-tuned. Arehada expects to commence
operation of this module in the second quarter of 2007. Total capital cost for
the smelter to date is approximately $17 million.
ZINC LEAD SILVER EXPLORATION PORTFOLIO
In addition to the existing operating mine and the smelter described
above, Arehada has significant and promising zinc lead silver exploration
properties. All these properties are in the same region of the existing mine
and within hours of driving distance.
Arehada 57.34 km(2)
Dasaituo 50.50 km(2)
Wuhua aobao 21.00 km(2)
Total 128.84 km(2)
Exploration programs covering Arehada area II (to the east of Arehada I)
since July 2006 have discovered 12 additional mineralized zones from line 39
to 71, and obtained significant zinc, lead and silver resources. The company
is in the process of finalizing its data and will release its positive results
ZINC LEAD SILVER EXPLORATION PORTFOLIO
The Company is planning to double its current mining operations to
3,000 tonnes per day in 2008 from the current 1,500 tonnes per day. To
implement this strategy, the company has commenced its mining development by
constructing the second major incline shaft in December 2006.
About Dragon Capital
Through its 100% owned subsidiary Arehada Mining Corporation, Dragon
Capital is engaged in the exploration, development, extraction and refining of
zinc, lead and silver in Dongwuzhumuqinqi, located in Inner Mongolia, China.
Arehada produces zinc and lead concentrates, which is sold to smelters in
Certain forward-looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward looking statements involve risks and uncertainties
detailed from time to time in the Company's periodic reports filed with
Canadian regulatory authorities. Many factors could cause actual results,
performance or achievements to be materially different from any future
results, performance or achievements that may be expressed or implied by such
For further information:
For further information: Dragon Capital Corporation, Oliver Xing, T:
(416) 562-8120, email@example.com; The Equicom Group, Martti Kangas, (416)
815-0700 x243, firstname.lastname@example.org