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Australian firms to resume gold exploration in Vientiane
An Australian company plans to invest about US$6.5 million to resume gold exploration activities in an area bordering Vientiane and Vientiane province after suspending work in mid-2009.
Aurum Resources signed an agreement with another Australian company Argonaut Overseas Investment in Vientiane at the end of last month to take a majority interest in its Lao subsidiary, which holds the rights for gold exploration rights in a 226 square km area in Sangthong District, Vientiane, and Meun District, Vientiane Province.
Argonaut Overseas Investment, through its Lao subsidiary Argonaut Lao Resources, began gold mine exploration in the Century Concession area in 2005 but suspended the work in the middle of 2009 amid the global financial crisis.
The joint venture between the two Australian companies aims to resume gold mine exploration activities in the concession area, which covers a number of districts in both Vientiane and Vientiane province.
According to a media release from Aurum Resources, the geological potential of the Century Concession area was a driving factor in the decision to resume exploration as it is situated along the highly prospective Loei-Luang Prabang mineralised belt. Existing mines and other recent discoveries along this belt indicate the significant resource endowment contained within it, the Australian company said.
Another plus for the concession area is that Aurum sees that it is an advanced stage exploration project. Under previous management, ARL has completed much of the initial grassroots exploration work, already generating a number of prospects within the concession area. Aurum's technical assessment of this data was very encouraging.
Aurum Laos Managing Director Christopher Gerteisen said his company was confident that the concession area hosted resources of significant size and tenor to meet Aurum's economic deposit criteria.
“A successful project often involves bringing in new partners to push the project forward with new ideas and financing. And so this is the essence of the agreement and transfer of management control of ARL to Aurum Laos,” he said.
The next step to move this project forward requires technical expertise and significant investments of capital, which Aurum is bringing to the joint venture, he said. Mr. Gerteisen said exploration activity and mine developments over the last decade or so prove that Laos has significant potential for increasing its wealth through further discoveries of economic mineral resources.
“Aurum, as a minerals exploration and development company, sees huge long-term investment opportunity in Laos. The country is politically stable, open for business and foreign investment, and highly under-explored with respect to all mineral commodities,” he said.
Mr. Gerteisen said Aurum was pleased and impressed with the consistent support and encouragement from the Lao government.
“This continued support and close working relationship will of course be critical to ensure this great country realises the rightful benefits that should flow from any future mining project,” he said.
vientiane times
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