Victory West Metals opts contract extension with China Guangshou
Monday, April 30 2012 - 07:04 AM WIB
Australia based Victory West Metals Limited has stated that would extend its contract with China Guangshou Group Corporation following the termination of the previously signed agreement expired on December 31, 2011.
The contract was signed to have the China Guangshou to finance and develop its Malala Molybdenum Project in Sulawesi, currently awaiting forestry approval to proceed to production.
Arranging repayment of $650,000 to Guangshou, Victoria has also entered discussions with another Chinese company to finance and develop this project, in which it intends to complete either a renegotiated agreement with Guangshou or a new agreement with another party by the end of the third quarter of this year.
The Malala Molybdenum Project, located in the Toli Toli Regency of Central Sulawesi Province, is located approximately 150km to the north of Palu, comprises five IUP concessions that include PT Inti Cemerlang, PT Promistis, PT Era Moreco, PT Sembilan Sumber Mas and PT Indo Surya.
The total area forming the Project is in excess of 240km2 spread across the five concessions all of which are located within 15km of the coast.
Victoria West stated that since acquisition, the company has worked diligently at compiling and reviewing the historical data and re-initiating the exploration process, in which the majority of work has been targeted at Anomaly B, the key area of Rio Tinto/Santos exploration efforts in the 1970's and 1980's.
Rio Tinto had defined a non-JORC compliant resource at Anomaly B, to become the basis of Victoria's exploration target of 105-115 million tons @ 660-900ppm Mo1.
In 2009, Victoria began the task of proving up this initial exploration target, with this work continuing throughout 2010. It has significantly advanced its understanding of the Anomaly B prospect area, with detailed trenching and geophysical surveying making large contributions to this improved understanding.
The Company believes all approvals for the project will be obtained and is working with the Indonesian parties in this regard, hopeful that everything will be concluded by June 30 this year.
Editing by Audy Zandri