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In November 2005 Avocet acquired
a 20 per cent interest in Dynasty Gold Corporation
(Dynasty), which is listed on the TSX Venture
Exchange in Canada.
Dynasty controls a large area
of prospective ground in Western China. This includes
1,000 square kilometres at the Hatu tenement on
the Qi-2 deposit in Xinjiang Province (Hatu JV),
100 square kilometres at Red Valley in Qinghai
Province and 2,000 square kilometres at Wild Horse
in Gansu Province. In 2006 the Company announced
a joint venture deal with Dynasty to earn up to
36 per cent of Dynasty's interests in Xinjiang
Province, and more particularly the Hatu project,
by investing up to US$1.8 million, to bring the
existing resource up to a measured and indicated
category, undertake step out drilling to expand
the resources and finalise metallurgical testwork,
with a view to moving the project to feasibility.
To date, Avocet has spent US$1.0
million, entitling the Company to a 27 per cent
interest in the project. A total of 1.4 tonnes
of samples has been taken and sent for metallurgical
testwork to Avocet's Penjom mine in Malaysia,
which has successfully developed a proprietary
process for treating ores of a similar nature
to Qi-2. The results from these samples, which
will assist in the optimisation of gold recovery,
are expected later in the year. The investment
in Dynasty is viewed as a strategic step towards
potential entry into the Chinese gold mining industry.
For more information about Dynasty
Gold Corporation please visit their website at
www.dynastygoldcorp.com
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