China's Baoan Xiangzhong K-feldspar Mine Receives 20 Million Yuan to Receive Prospecting Rights

Shanghai Securities News reported on June 22 that even though the “graphite mine” incident was punished by the Shenzhen Stock Exchange, Baoan (000009) in China seems obsessed with mining. This phase of the company is a K-feldspar mine.

China Baoan announced today that Bao'an, a wholly-owned subsidiary, signed an agreement with the No. 1 Geological Prospecting Institute of Heilongjiang Province on June 20, and that Bao’an Pottery intends to accept the mineral resources prospecting license of the K-feldspar mine owned by the First Geological Institute. certificate. As a condition for acquiring the prospecting right of the K-feldspar ore, Bao’an Potassium Co., Ltd. compensated RMB 20 million to the First Institute of Geology, and after the first Geological Institute obtained the approval of the Heilongjiang Provincial Land and Resources Department on the assessment of the Qiqishan K-feldspar mine, Bao’an The 15% stake in the potassium industry was transferred to the First Geological Institute at a price of 1 yuan. China Baoan promised that regardless of the final assessment value of the prospective mineral exploration rights of the K-feldspar mine, the First Geological Institute will be legally transferred and hold 15% of the equity in Baoan Potash, which is not diluted due to the increase in capital of Baoan Potash. It is not due to changes in the controlling shareholder.

According to the announcement, the K-feldspar mine in the mineral resource exploration permit obtained by the First Geological Institute is located in Qiqishan, Yangmu Township, Mishan City, Heilongjiang Province. According to the investigation, the length of the orebody in the K-feldspar ore district is 1169.01 meters, and the vertical depth is controlled to 110 meters (local erosion reference plane). The average width of the ore body is 217.23 meters and the average thickness is 67.23 meters. There are three types of ore natural types, ie, white clouds. The parental nepheline syenite, nepheline syenite, and potassium-long pegmatite, of which mainly muscovite nepheline syenite, account for 90% of the total ore. The content of beneficial components in the ore is approximately: 14.53% for potassium oxide and 23.22% for alumina. It is the highest in 14 beneficial mines in the same type of mines in the country. After detailed investigation, the amount of ore resources is C grade (332) 30 million tons. Class D (333) 32 million tons, and the amount of resources in the distant view exceeds 100 million tons.

As far as the above situation disclosed by Baoan in China is concerned, this time the K-feldspar mine should not be a virtual one. However, there is still a point that needs attention. The announcement disclosed that the expiry date of the paper prospecting right expired on January 8, 2011. At present, the First Geological Institute is processing its extension procedures, and the renewal application still needs the approval of Heilongjiang Provincial Department of Land and Resources. Therefore, China Baoan also acknowledges that there is a risk of administrative approval for the agreement, and ultimately it is impossible to determine the relevant prospecting rights.

It is understood that after the comprehensive development of potash feldspar, the main products are industrial potassium carbonate, metallurgical grade alumina, cement. Among them, industrial potassium carbonate is mainly used for the production of potash; metallurgical grade alumina is mainly used to produce aluminum ingots, metal aluminum, etc.; cement is widely used in various construction projects.