Extract from “The Asia Miner” july/august 2011
STRATEGIC Mining has started a 2,500 metre drilling campaign at its Nat Son gold property in Hoa Binh Province, northern Vietnam. The program aims to define gold reserves and to give exact locations where to begin mining operations. The drilling using a Boart Longyear LF 70 was due to begin earlier in the year but was put back owing to unanticipated delays at customs and the need to order additional parts for the rig, which is the first angular core drill rig to be used in the province.
A geologist and drill crew arrived in Vietnam in late May to begin the deep-hole program, which the company aims to complete during the current quarter. The site has produced surface samples with gold values as high as 47.3 grams/tonne.
The program follows a geologist’s report which recommended a detailed drill program to test the subsurface potential. Given positive test results, a further drilling program would be initiated that would require another 12 months. Nat Son is about 50km southwest of Hanoi in the centre of the gold-rich Kim Boi deposit. Exploration interest in the property is based on the presence of gold-silver bearing quartzarsenopyrite veins which are exposed at surface and within rudimentary underground mine workings. The veins have been examined and studied over a strike length of 4km.
Strategic is also continuing negotiations to acquire an interest in the Dong Thanh gold property. Samples are being tested by a well qualified US metallurgist to determine the cost and the best method to attain the highest extraction level for the gold. The results will assist in finalizing an agreement.
Strategic has recently appointed Ken Baird as new CEO and director, replacing Todd Sterck, who has been appointed to manage the Vietnam operations on a fulltime basis. Ken Baird has more than 30 years diversified international experience in the mining and exploration industry, including stewardship of three Toronto Venture Exchange exploration companies.
In 1995, he negotiated the financing and operating lease to put the Edwards Gold Mine in Ontario into production. This yielded more than 140,000 ounces in its first four years. His experience also includes the financing and management of several private gold and diamond mines in Canada and South America, and managing numerous exploration programs in Central America and Canada.
Northern Vietnam’s Gold Producer
Strategic Mining intends to become the leading gold producer in northern Vietnam.
Through our joint-venture partnership with Ba Dinh Minerals JSC of Ho Chi Minh City, we are privileged to have a unique relationship with the Vietnamese government.
We are currently in formal negotiations with the government to acquire a 40% interest in Dong Thanh, a producing gold mine in Hoa Binh province.
We estimate this mine could achieve annual gold production of approximately 20,000 ounces in the first year through low-cost improvements in mining mechanization and processing.
We are in various stages of discussions to acquire other currently producing Vietnamese gold mines in the area and anticipate announcing our progress in the near future.
Strategic Mining only invests in projects that are under-producing for technical reasons, but have the potential through modernization to deliver big, robust profits for our shareholders.
Nat Son
Recently, in a further reflection of our strong relationship with the Vietnamese government, Strategic Mining became the first western company to receive a mining license in northern Vietnam in nearly six decades.
The licence allows us to begin exploration and development of our Nat Son project, a gold property positioned on the same gold strike as Dong Thanh.
We are scheduled to begin deep-hole drill exploration at Nat Son in March 2011.
