Orchid to buy copper giant

Orchid to buy copper giant

Jesse Riseborough, Miningnews.net

Thursday, February 10, 2005

Orchid Capital has signed a letter of intent with the China Tibet Institute of Geology Survey to acquire up to 80% of the multi-million tonne Qu Long and Jia Ma copper projects.

The Qu Long project is around 60km east of Lhasa, the capital of Tibet, and according to Orchid hosts five million tonnes of copper metal, 35,000 tonnes of Molybdenum and 3200t of silver. Orchid said recent drilling by the Tibet Bureau of Geology and Mineral Resources indicated copper grades of up to 0.52%.

Orchid Resources exploration director Dr David Tyrwhitt said all drill holes at Qu Long have cut ore-grade mineralisation from surface to the bottom of the hole, with the ore body open at depth and the margin yet to be defined by drilling.

The Jia Ma copper skarn deposit is located 6km north of Qu Long and has reportedly been drilled extensively over 4km of strike length. Orchid estimates Jia Ma to contain an inferred resource of 500,000 tonnes of copper, 550,000 tonnes of lead, 60,000 tonnes of zinc, 450,000 ounces of gold and 23 million oz of silver.

Orchid Capital joint managing director Alvin Tan, said an independent consulting group would conduct a full technical evaluation of both Qu Long and Jia Ma to establish the resource and economic value of the projects.

"Minimum expenditure is yet to be determined, however Orchid will acquire its 80% majority interest by funding exploration and a full feasibility study of the projects," Tan said.