West Perth-based gold company Leyshon Resources Ltd has signed a co-operation agreement with the municipal government of the AiHui district for the rapid development of its Zheng Guang gold project in north east China, the company has announced.
West Perth-based gold company Leyshon Resources Ltd has signed a co-operation agreement with the municipal government of the AiHui district for the rapid development of its Zheng Guang gold project in north east China, the company has announced.
The full text of a company announcement is pasted below
Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to announce that it has entered into a cooperation agreement with the Municipal Government of AiHui District for the rapid development of the Zheng Guang gold project in Heilongjiang, northeast China.
The agreement provides for the Zheng Guang project to be ranked as a top priority project by the AiHui government thereby facilitating its rapid development. Under the agreement the local government will expedite approvals for land use, access road construction, water and electricity supply.
The agreement was signed with the Mayor of the City of Heihe, the Municipal centre of AiHui district, at the 18th China Harbin Fair for Trade and Economic Cooperation. The high-profile ceremony was televised and attended by local leaders of the communist party together with the most senior local government representatives.
At the fair, officials announced an US$8 billion infrastructure investment in the Harbin-Daqing-Qiqiha'er industrial corridor and the connection of the Russia to China gas pipeline to Daqing, China's largest oil and gas field.
Heilongjiang is rich in energy resources and currently supplies half of China's crude oil and has more than 22 billion tonnes of coal reserves.
Zheng Guang, which has its joint venture office at Qiqiha'er, is located 250 kilometres to the north of this major development zone and is already benefiting from improved road, rail and air transport connections.
The expansion of the province's electricity generating capacity which is expected to increase to more than 2.2 million megawatts by 2010 will further enhance the province's competitive advantage for resource project development.
The average price of electricity per kilowatt hour in Heilongjiang is reported to be half of that in China's Southern provinces.
Managing Director Paul Atherley commented:
"The scale of Heilongjiang's infrastructure development under the Central Government's 5 year old northeast revitalization plan is remarkable by any measure. The combination of the unexplored geological potential, low population density and excellent infrastructure were the main reasons we chose to invest in the Province three years ago. Since then the Province's infrastructure has improved dramatically."
"Importantly for Leyshon the government's infrastructure investments are aimed at attracting foreign investors with the necessary expertise to revitalize traditional industries such as mining. With the local government giving the project its highest level of support we are looking forward to commencing construction of China's most exciting new gold project. "
