News

April 30, 2008

Central China Goldfields Aims for Early Cash Flow

By Rob Davies

Jeff Malaihollo, managing director of Central China Goldfields, rather surprised Minews during a recent phone conversation. Mr Malaihollo said he wasn’t going to bother defining a resource to NI 43 101 standard at his company’s Dong Mao Huo gold property in Inner Mongolia, China. He feels that it would take too long and be too expensive. He would much rather get into production early and generate cash to finance further exploration. He’s hoping to be in production by the first quarter of 2009. Doing that means shareholders are not diluted and could get higher returns in the end.

Mr Malaihollo’s most recent deal was the sale of Central China’s Snow Mountain property for US$5.4 million. That generated a US$2 million profit and left the company with a net cash position of £3.8 million, equivalent to virtually half of its current market capitalisation. It also means that the company is in a strong position to fund exploration and development at Dong Mao Huo and to continue exploration at the Nimu copper prospect in Tibet.

Mr Malaihollo believes there is excellent...