MINISTRY OF NATURAL
RESOURCES & ENVIRONMENT __________ No: 67/GP – BTNMT | | SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness ____________________ Ha Noi, January 10th 2008 |
MINISTER OF NATURAL RESOURCES & ENVIRONMENT
Pursuant to the Mineral Law dated 20 March 1996; Law on Amendment and Supplement to some articles of Mineral Law dated 14 June 2005;
Pursuant to Decree No. 160/2005/ND-CP dated 27 December 2005 by the Government providing detailed guidelines for the implementation of Mineral Law and Law on Amendment and Supplement to some articles of Mineral Law;
Pursuant to Decree 91/2002/ND-CP dated 11 November 2002 by the Government stipulating functions, responsibility, power and structure of the Ministry of Natural Resources and Environment;
Pursuant to the Prime Minister’s opinions stated in the Official letter No. 2581/VPCP-CN dated 16 May 2007 issued by the Government office regarding primary gold exploration in Phuoc Duc and Phuoc Xuan communes, Phuoc Son district, Quang Nam province;
Pursuant to the Investment Licence No. 2355/GP dated 20 October 2003 by the Ministry of Planning and Investment regarding approval on the establishment of Phuoc Son Gold Company Limited;
Pursuant to the opinion of the Ministry of Industry (Official letter No. 1270/BCN-CLH dated 29 March 2007); the opinion of the Department of Forestry under the Ministry of Agriculture and Rural Development (Official letter No. 1143/CV-SDR dated 3 August 2007) regarding primary gold exploration in Phuoc Son district, Quang Nam province;
In consideration of recommendations by the Quang Nam People’s Committee in the Official letter No. 1784/UBND-KTN dated 22 June 2006 and Official letter No. 471/UBND-KTN dated 01 March 2007 regarding primary gold exploration in Phuoc Son, Quang Nam;
After perusing the exploration licence application submitted by PSGC on 06 July 2005, resubmitted on 04 September 2007 and the evaluation report by the Committee for Mineral Activity Project and Report Assessment of the Ministry of Natural Resources and Environment in the meeting dated 14 June 2007 regarding the gold exploration program in Phuoc Son area, Phuoc Duc and Phuoc Xuan communes, Phuoc Son district, Quang Nam province;
At the resquest of the Director General of the Department of Geology and Minerals of Vietnam.
DECIDES
Article 1: To permit Phuoc Son Gold Company Limited to do exploration for primary gold in Phuoc Son area, Phuoc Duc and Phuoc Xuan communes, Phuoc Son district, Quang Nam province;
1. | Exploration area: 42 km2 (forty two sq.km) specified on the 1/50000 scale topographic map No F-48-45-A (VN2000 system) or 6540 III and 6539 IV sheets (UTM system) as specified by controlling points numbered from 1 to 17 shown on the exploration area map and Appendix 1 annexed to this Licence, not including the two sub-areas of 1.52 ha specified by points numbered from 18 to 41 which are of the Mining Licence No 116/GP-BTNMT granted by the Ministry of Natural Resource and Environment on 23 January 2006; |
2. | Volume of key exploration work: indicated in Appendix 2 attached hereto; |
3. | Exploration term: 24 (twenty four) months from the signing date of this licence; |
4. | Exploration expenditure: self-funded by the Company (applying the currently relevant unit prices); |
5. | Escrow registered at the State Treasury or banks (either Vietnam State Bank or a foreign bank permitted to operate in Vietnam): US$ 161,728.75 (One hundred and sixty one thousand, seven hundred and twenty eight US dollars, seventy five cents). |
Article 2: PSGC shall be responsible for:
1. | Carrying out exploration for primary gold as stipulated in Article 1 of this licence and exploration methods and programs approved by the Committee for Mineral Activity Project and Report Assessment of the Ministry of Natural Resources and Environment dated 14 June 2007; executing the exploration work in accordance with technical procedures and requirements on labor safety and environment protection; inspecting and undertaking responsibility for quantity, quality and accuracy of reports on project implementation; filing original documents and relevant field documents and protecting samples and drill cores as required by relevant regulations; |
2. | Registering the escrow in accordance with the Law and as stipulated in Article 1 of this licence; submitting the Department of Geology and Minerals of Viet Nam (DGMV) the confirmation letter of the State Treasury or the bank where the escrow is registered so that DGMV can control, inspect and decide whether to return or confiscate the escrow to the State Budget as stipulated by the law; |
3. | Prior to conducting metallurgical sampling, sample weight, location, sampling schedule and methods should be registered with the Quang Nam Department of Natural Resources and Environment for site inspection and supervision. |
4. | Protecting mineral resources; mining activities are strictly prohibited during exploration; |
5. | Timely reporting in writing to the Ministry of Natural Resources and Environment for appropriate consideration if any other (than gold) kind of mineral is discovered during exploration; |
6. | Submitting the exploration reports for evaluation and approval by the Committee of Mineral Reserve Assessment; submitting reports to the Geological Archive and mineral samples to the Geological Museum as stipulated by current regulations. |
Article 3: The approved exploration programs can be only commenced after the exploration programs are informed to the Quang Nam Department of Mineral Resources and Environment, the Higher Command of the Fifth Military Zone and local authorities for co-ordinating in management, inspection and location of the exploration area, coordinates and landmarks.
In case PSGC fails to comply with regulations of the Mineral Law and Law on Amendment and Supplement to some articles of the Mineral Law and other related legal documents, or fails to fulfill its obligations stated herein, this licence shall be revoked as regulated by the Mineral Law and PSGC shall undertake all legal liabilities for related issues.
Distribution: - QNPC - Legal Dept (MoNRE) - Office of the Committee of Mineral Reserve Assessment - Central Vietnam Mineral Branch - Quang Nam Dept of Natural Resources & Environment - PSGC (02) - File | |
For the Minister
Vice Minister
(signed and sealed) Tran The Ngoc |
The exploration licence is registered
at the Department of Geology and Minerals of Vietnam
Registration no. 07DK/TD
Hanoi, 18 January 2008
For and on be half of the Director General
Deputy Director General
(signed and sealed)
Trinh Xuan Ben
MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT
APPENDIX 1
TABLE OF COORDINATES OF GOLD EXPLORATION AREA AT PHUOC SON, PHUOC DUC AND PHUOC XUAN COMMUNES, PHUOC SON DISTRICT, QUANG NAM PROVINCE
(Attached to Exploration Licence no. 67/GP-BTNMT dated 10 January 2008 by Ministry of Natural Resources and Environment)
1. Coordinates of exploration area:
| | VN-2000 system
(Central meridian 105o, 6 degree projection zone) | | UTM system |
Points | | X (m) | | Y (m) | | X (m) | | Y (m) |
1. | | 1720 627 | | 789 635 | | 1720 188 | | 790 240 |
2. | | 1716 776 | | 793 103 | | 1716 337 | | 793 708 |
3. | | 1716 422 | | 792 709 | | 1715 983 | | 793 314 |
4. | | 1714 327 | | 794 595 | | 1713 888 | | 795 200 |
5. | | 1709 846 | | 794 595 | | 1709 407 | | 795 200 |
6. | | 1706 289 | | 790 645 | | 1705 805 | | 791 250 |
7. | | 1711 695 | | 789 645 | | 1709 256 | | 791 250 |
8. | | 1711 385 | | 789 123 | | 1710 946 | | 789 728 |
9. | | 1712 693 | | 790 421 | | 1712 254 | | 791 026 |
10. | | 1713 752 | | 790 395 | | 1713 313 | | 791 000 |
11. | | 1713 793 | | 789 861 | | 1713 354 | | 790 466 |
12. | | 1714 280 | | 789 178 | | 1713 841 | | 789 783 |
13. | | 1714 792 | | 789 846 | | 1714 353 | | 790 451 |
14. | | 1714 978 | | 789 975 | | 1714 539 | | 790 580 |
15. | | 1715 270 | | 789 742 | | 1714 831 | | 790 347 |
16. | | 1715 810 | | 780 128 | | 1715 371 | | 790 733 |
17. | | 1717 114 | | 790 336 | | 1716 675 | | 790 491 |
2. Coordinates of the areas of Mining Licence no. 116/GP-BTNMT granted by Ministry of Natural Resources and Environment on 23 January 2006:
| | VN-2000 system (Central meridian 105o, 6 degree projection zone) | | UTM system |
Points | | X (m) | | Y (m) | | X (m) | | Y (m) |
18. | | 1708 737 | | 791 904 | | 1708 298 | | 792 509 |
19. | | 1708 719 | | 791 954 | | 1708 280 | | 792 559 |
20. | | 1708 694 | | 791 954 | | 1708 255 | | 792 559 |
21. | | 1708 612 | | 791 916 | | 1708 173 | | 792 521 |
22. | | 1708 561 | | 791 880 | | 1708 122 | | 792 485 |
23. | | 1708 600 | | 791 871 | | 1708 161 | | 792 476 |
24. | | 1708 645 | | 791 813 | | 1708 206 | | 792 418 |
25. | | 1708 696 | | 791 841 | | 1708 257 | | 792 446 |
26. | | 1708 680 | | 791 860 | | 1708 241 | | 792 465 |
27. | | 1708 676 | | 791 914 | | 1708 237 | | 792 519 |
28. | | 1708 709 | | 791 926 | | 1708 270 | | 792 531 |
29. | | 1709 634 | | 792 242 | | 1709 195 | | 792 847 |
30. | | 1709 609 | | 792 259 | | 1709 170 | | 792 864 |
31. | | 1709 608 | | 792 243 | | 1709 169 | | 792 848 |
32. | | 1709 581 | | 792 200 | | 1709 142 | | 792 805 |
33. | | 1709 585 | | 792 175 | | 1709 146 | | 792 780 |
34. | | 1709 569 | | 792 149 | | 1709 130 | | 792 754 |
35. | | 1709 557 | | 792 145 | | 1709 118 | | 792 750 |
36. | | 1709 554 | | 792 072 | | 1709 115 | | 792 677 |
37. | | 1709 556 | | 792 072 | | 1709 127 | | 792 677 |
38. | | 1709 568 | | 792 108 | | 1709 129 | | 792 713 |
39. | | 1709 579 | | 792 096 | | 1709 140 | | 792 701 |
40. | | 1709 604 | | 792 096 | | 1709 165 | | 792 701 |
41. | | 1709 609 | | 792 225 | | 1709 170 | | 792 830 |
MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT
APPENDIX 2
TABLE OF WORK VOLUME OF PRIMARY GOLD EXPLORATION AT PHUOC SON, PHUOC DUC AND PHUOC XUAN COMMUNES, PHUOC SON DISTRICT, QUANG NAM PROVINCE
(Attached to Exploration Licence no. 67/GP- BTNMT dated 10 January 2008 by Ministry of Natural Resources and Environment)
| | | | | | Work Volume | | |
No. | | Items | | Unit | | The 1st year | | The 2nd year | | Total |
1. | | 1/2000 scale geological maping | | km2 | | 10 | | 10 | | 20 |
| | - Griding | | km | | 60 | | 50 | | 110 |
2. | | 1/5000 scale geotechnical – hydrogeological mapping | | Km2 | | | | 5 | | 5 |
| | - Pump test | | point | | | | 5 | | 5 |
3. | | Geochemical survey and sampling | | | | | | | | |
| | - Soil sampling | | sample | | 0 | | 3,500 | | 3,500 |
| | - Rock, ore, drill core sampling | | sample | | 2,000 | | 2,000 | | 4,000 |
4. | | Sample Preparation | | sample | | | | | | |
| | - Soil sample | | sample | | 0 | | 3,500 | | 3,500 |
| | - Sample of rock, ore,... | | sample | | 2,000 | | 2,000 | | 4,000 |
5. | | Sample Analysis | | sample | | | | | | |
| | - Thin section and polished section | | sample | | 50 | | 25 | | 75 |
| | - Petrological sample | | sample | | 100 | | 50 | | 150 |
| | - Soil sample | | sample | | 0 | | 3,500 | | 3,500 |
| | - Rock and ore sample | | sample | | 2,000 | | 2,000 | | 4,000 |
| | - Metallurgical sample | | sample | | 1 | | 1 | | 2 |
| | - Water sample | | sample | | | | 20 | | 20 |
| | - Geo-mechanical sample | | sample | | | | 40 | | 40 |
6. | | Geophysical work (surface) | | | | | | | | |
| | - IP | | point | | 4,000 | | 0 | | 4,000 |
| | - Dipole survey | | point | | 50 | | 0 | | 50 |
7. | | Trenching and pitting | | | | | | | | |
| | - Trenching | | m3 | | 2,000 | | 1,500 | | 3,500 |
| | - Outcrop clearing | | m3 | | 100 | | 200 | | 300 |
8. | | Topographic Survey | | | | | | | | |
| | - Locate workings from the site onto the map | | work | | 100 | | 100 | | 200 |
| | - IV level GPS grid establishment | | point | | | | 5 | | 5 |
| | - 2nd level traverses | | point | | | | 15 | | 15 |
| | - 3rd level traverses | | point | | | | 30 | | 30 |
| | - 1/2000 scale topographic survey | | km2 | | | | 5 | | 5 |
9. | | Exploration drilling | | m | | 4,500 | | 8,135 | | 12,635 |
| | - Contingency | | m | | | | 10,000 | | 10,000 |
10. | | Other expenditures | | | | | | | | |
| | - Compensation | | estimated | | | | | | |
| | - Sample dispatch | | kg | | 1,050 | | 1,913 | | 2,963 |
| | - Camp (2%) | | | | | | | | |
