DISCOVERY OF THE GONGSHAN MINE
Due to its position and settings, the Gongshan mine has 16 different types of mineral resources, such as Copper, Gold, Silver, Aluminum, Iron ore, Lead, Zinc etc. In the 1950’s and the opening up to systematic exploitation of Tibet’s rich minerals, big mining companies have shown great interest in investing in the region. According to Article 9 of the Constitution of the People’s Republic of China, Tibet’s resources are state assets available to be exploited to meet the needs of national development. Over the past sixty years, however, mineral exploitation has evolved from a marginal endeavor to a major phenomenon in China’s economic growth driven by industrialization and urbanization.
APPLICATION OF MINING LICENSES
Mining licenses were applied for and issued to; MIG Mining in February 2014. MIG Mining first entered China in 2014 to capitalize on the country's vastly under-explored geological potential. While the Chinese government invested tremendously in geological exploration in the 1950s and 1960s, leading to many discoveries, very little capital or advanced exploration technology was available to exploit them fully. China's 1997 Mineral Resource Law was adopted specifically to enable foreign mining companies to explore and mine in the country, inviting in the advanced exploration technology, expertise and funding China needed to truly develop its resources.
PLANNING & ANALYSIS
In 2016, MIG Mining spent the majority of this period in preparation phase. We contracted numerous resources on planning and analysis in order to be ready for the upcoming potential explorations.
ACQUIRED MINING RIGHTS
In 2015, MIG Mining acquired 50-year mining rights to the Gongshan mine, a medium-producing open pit mine in the Yunnan province, and exploration over the next two years led to the discovery of high-grade gold-zinc-silver ore mineralization.
WON INVESTMENT BID
In January 2017, MIG Mining won an investment from Zīyuán Tóuzī Funds LLC in order to facilitate the infrastructure required to proceed with initial production. On March 23, 2017, MIG Mining received its first mining permit and commercial production of gold, zinc, silver and other by-products from the Gongshan mine.
MIG Mining is one of China’s premier junior miners and precious metal producers, with annual production of 80,000 ounces of gold in fiscal year 2018. The Company also produced 3,825 tonnes of lead, 10,400 tonnes of zinc and 600,000 ounces of silver during the same period. In addition to its operational success, MIG Mining is considered a preferred mining company in the Yunnan province, having built a solid reputation for upholding high safety and environmental standards and for supporting local community initiatives. Additionally, MIG Mining has become one of the most prominent private non-state-controlled companies.
MIG Mining commenced commercial production at its Gongshan mine gold-zinc-silver project in Yunnan Province in 2018, its newest production base in China. While the Company's near team-focus is on cost control, cash preservation, and protecting its strong balance sheet, longer term MIG Mining plans are to continue its growth through future consolidation, exploration, mine development and acquisition, with a focus in China.
The management of MIG Mining has always approached the business of mining differently than most Chinese junior exploration companies. Rather than purely drilling for years to build up a resource that it intends to sell to someone else, MIG Mining aimed at the outset to go into operations quickly so that it could run a distinguished and profitable business.
This long-term strategy is characterized by three key steps:
1. Acquire a project and conduct selective exploration to further define its potential;
2. Develop mine operations and generate profits before the project’s potential is fully drilled off;
3. Use the cash flows generated from operations to fund further exploration, resource expansion and production ramp-up.
MIG Mining’s long-term strategy produced three key benefits:
1. Local Employment – mine development creates jobs for neighboring communities, boosting the local economy and creating an immediate sense of community involvement in the project.
2. Tax Revenue for Local Government – boost in local support and the taxes collected from profits ensures the support of the local government for the continuation and success of the project.
3. Minimum Dilution for Shareholders – immediate profits and returns means immediate value appreciation for MIG Mining’s shareholders and minimum dilution of shareholders’ equity.
With over US$23,000,000.00 in cash and cash equivalents, new investments from Zīyuán Tóuzī Funds LLC (our original investment partners) and an additional injection of cash from Wang Zheng Holdings of USD $8,000,000.00, as of 1st January 2019, profitable operations, and high quality development projects, MIG Mining plans to grow through future consolidation, exploration, mine development and acquisitions. Our overall goal is to achieve a potential IPO in order to offer our shareholders the most fiscal value per nominal share held. We also intend to expand and optimize our operations in the Yunnan District in order to maximize the output of our infrastructure. We are heavily investing in our growth and expansion targets and aim to become one of the leading junior miner’s in the world.