The project is located approximately 240 kilometers southwest of the city of Lhasa in the Tibet Autonomous Region, People's Republic of China. Exploration by Continental since 2005 has resulted in the discovery of two copper-gold deposits.
The Xietongmen deposit was discovered in 2005. Comprehensive programs began the following year, delineating some 220 million tonnes of measured and indicated resources, and providing the data for a feasibility study and social and environmental impact assessments. The initial environmental report was finalized in late 2007 and an international standard social and environmental impact assessment is currently being finalized. The results of a positive feasibility study were announced in 2007, proposing a 40,000 tonnes per day conventional mill and open pit mining operation that would produce an average of 116 million pounds of copper and 190,000 ounces of gold plus a significant amount of silver annually over a 14-year mine life.
A second deposit, called Newtongmen, was discovered in 2006. A first-phase of definition drilling was carried out in 2007, and an initial estimate of the mineral resources was announced in May 2009, indicating that Newtongmen has excellent potential to increase the life of the mine.
Continental has actively engaged the people in the local communities near the project since our exploration work began. Our goal, through efforts in collaborative planning, effective management of environmental and social effects and facilitating economic development opportunities, is to develop a project that makes a positive contribution to the livelihoods of the people in the local villages and the Tibetan region.
Currently work is directed toward engineering design and other preparations for construction to begin at Xietongmen once final mining permits are received.