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Beikeng Mine 2018-05-17T21:51:58+00:00

Project Description

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Beikeng Mine

The Beikeng Mine, licensed under Datian hongji Mining Co., Limited (“Datian Hongji”), a 0.771 km2 iron ore tenement located in Datian County, Sanming City, Fujian Province in the People’s Republic of China, under extraction licence number C3500002010122110086857 which expires on 4 February 2023. Datian Hongji has received the Production Safety Permit for the Beikeng Mine from the Fujian Provincial Production Safety Supervision Bureau. This Production Safety Permit expires on 20 November 2019, and may, subject to passing of the requisite renewal inspections, be renewed upon its expiry. With this Production Safety Permit, Datian Hongji has received all requisite approvals and permits to commence commercial production at the Beikeng Mine. Barring unforeseen circumstances, the Company expects to commence commercial production at the end of the second half of 2017.

Introduction

Asaplus Resources Ltd (Asaplus), holds an 80% interest in the Beikeng Iron Mine, which is situated approximately 20km from the town/city of Datian, within Fujian Province in the Peoples Republic of China.

This Report is an Independent Geological Report and Resource Report of the Beikeng Iron Mine.

Datian County is the main mineral producing county of Fujian province. Mineral resources within Datian County are relatively rich, with abundant coal, iron ore and smaller copper, lead, zinc and manganese deposits as well as kaolin. By Australian standards, the size of the iron ore deposits are small and usually of a lower grade, but generally the ore is easily able to be beneficiated to an acceptable grade and the infrastructure is already established (population centres, roads, power, rail etc) with many steel mills and pig iron facilities being close by. There is a major steel mill in Sanming which is approximately 100 km by road from the project. This mill produces approximately 5.5 million tonnes of steel per year and is seeking additional suitable mill feed for it’s operations. Scattered around the project area are several much smaller “pig iron” facilities, which again are seeking suitable feed for their operations.

Location of Fujian Province in the Peoples Republic of China

The mine site is located on the western side of the Dai Yun Mountains which are dominated by steep hills and low valleys with the highest peak within the licence area of 880 metres asl, and the lowest point is at 735 metres asl. Within the valleys are scattered agricultural activities (rice growing, sweet potatoes) while on the slopes there is limited forestry production (mainly pine).

Location and Access

The Project is located within Fujian Province in the People’s Republic of China. The nearest major city/towns are Sanming and Datian both with populations of approximately 400,000. The Beikeng Iron Mine is approximately 20 km from Datian, which in turn is 230km from the major city of Xiamen. Access from Xiamen to Datian is by a major freeway, while from Datian to the project area is accessed via a well maintained sealed road.

Asaplus, through one of it’s subsidiaries (the Datian Hongji Mining Co) holds the exploration and extraction licence as well as the production safety permit over the 0.77sq km Beikeng Iron Mine. Another subsidiary company (the Datian Silverstone Mining Co. Ltd) holds the exploration licence to the Silverstone Iron Project of 5.6 sq km. The Silverstone Project contains an inferred resource of 3.5 million tonnes at an average grade of 41.8% iron.

Close to the Beikeng and Silverstone projects are many other similar styled mineral deposits, all of them currently in production or have been mined in the past. These mines all contain potentially commercial amounts of iron ore, plus polymetallic metals such as lead, zinc, copper, and silver.

Location of The Beikeng Project Within Fujian Province

Project Location With Nearby Mines

Project Geology

The Wen Bi Shan Group, has been altered by hot fluids emanating from the granodiorite intrusives, close to the boundary of the sediments and the granodiorite. The interaction of the fluids with calcareous sediments forms a skarn which acts to concentrate various metals into various parts of the skarn, thus forming the ore body, which trends in a N-S direction, with a steep (approximately 75 to 80 deg ) dip to the west. The metallic minerals found in skarns are usually, but not always, in the form of sulphides.

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Tenement Geology and Drill Hole Plan

Exploration Target Potential For Fe, Pb, Zn and WO3

Exploration Target Potential

Exploration Target Potential

The orebody is open at depth, and there is no geological reason to suggest that the ore does not continue below the ore body that makes up the “Inferred” Resource. There has been very limited assaying for silver, but the underground channel sampling conducted in 2017 indicates that the silver is distributed across the entire widths of the orebody and at all depths with samples taken from RL’s 756, 688 and 792.

The Exploration Target Potential with respect for Fe, Pb, Zn and WO3 with the ranges of tonnages and potential grades for the respective commodities.

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