A Vietnamese company has received the green light from the Lao government to explore gold deposits in Sangthong district, some 45km north of Vientiane, according to the Vietnamese News Agency
Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong and a representative of the Global South Joint Stock Company, Mr Cu Thanh Tien, signed an MOU in Vientiane last week for the gold exploration to go ahead.
Speaking at the signing c eremony, Mr Tien said the company would use modern equipment, a team of experts and highly skilled workers. The company would do its best to protect the local environment and recruit local people to work for the company, he said as quoted by the Vietnamese News Agency.
To mark the occasion, the Vietnamese mining company donated US$40,000 to the Lao government to build five houses for Lao war veterans.
According to the MOU, the Vietnamese firm will conduct gold exploration on an area of 24 square kilometres, in a location known to have high gold deposit potential, after Vilabouly, Phu Bia, Attapeu and Sanakham.
An Australian miner began carrying out gold exploration in Sangthong district in 2005 with Lao government permission.
Aurum Resources expects to resume gold exploration in the district after securing another Australian firm, Argonaut Overseas Investment, as a new business partner.
The two Australian firms signed an agreement in Vientiane recently to take a majority interest in its Lao subsidiary, which holds gold exploration rights in a 226 square km area in Sangthong district, and in Meun district, Vientiane province.
Argonaut Overseas In-vestment will spend US$6.5 million to resume gold exploration in the Century Concession area, after work was suspended in the middle of 2009 due to the global financial crisis.
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 con cession 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.
