Dynasty Responds to Globe and Mail Publication About Its Mining in Xinjiang, China
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Vancouver, British Columbia–(Newsfile Corp. – April 13, 2022) – Dynasty Gold Corp. (TSXV: DYG) (FSE: D5G1) (OTC PINK: DGDCF) (“Dynasty” or the “Company”) responds to an article published by The Globe and Mail on April 11, 2022 in which Dynasty Gold was named along with Walmart, Lululemon and Amazon Canada for allegedly employing or using goods made with forced labor in China’s Xinjiang province. According to the article, a complaint has been filed with the Canadian Ombudsman for Responsible Business (CORE). The Company currently has no operations in Xinjiang and would like to provide an overview of its historical experience with its mining operation in Xinjiang.
Dynasty’s work in Xinjiang began when it funded an exploration and development program at the Hatu Qi-2 gold mine between 2004 and 2008. This was done through a joint venture Sino legal between Dynasty and a state-owned company (Xinjiang Non-Ferrous Industrial Group Limited (“XFN”)), and two of XFN’s wholly-owned subsidiaries. Dynasty held and still holds a seventy percent (70%) interest in the joint venture. A significant gold discovery was made at the Hatu Qi-2 gold mine with 100% financing from Dynasty. The Hatu Qi-2 gold deposit is located within a 600 km2 land package that the joint venture held in the prolific Tien Shan gold belt.
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In June 2005, an NI43-101 resource estimate prepared by SRK Consulting Canada was released, and a prefeasibility study was completed in 2007 which confirmed an in situ resource of 6.29 million tonnes grading 2. 65 g/t gold, using a 1.0 g/t cut-off for a total of 536,000 ounces of gold calculated using $600 per ounce of gold and open pit mining. Today, at over $1,900 of gold per ounce, the value of this resource would be considerably higher. According to the Globe and Mail article titled “Canadian companies operating in China’s Xinjiang region” published on January 18, 2021, the resource was estimated to be “about US$1 billion at current gold prices”.
Dynasty has encountered difficulties in continuing operations at Hatu since 2008. XFN has operated and continues to operate the mine without input or participation from Dynasty.
In 2016, a subsidiary of XFN, and thirty percent (30%) minority owner of the Hatu Qi-2 gold mine, Western Region Gold Co. Ltd., listed the Hatu gold mine in an initial public offering on the Shanghai Stock Exchange without acknowledging Dynasty’s 70% stake in the mine. This was made clear in a number of joint venture agreements and subsequent amendments signed between the parties between 2003 and 2007, all of which confirmed Dynasty’s 70% interest in the Hatu Qi-2 gold deposit. and the intention of the parties to form a mining joint venture to develop the mine.
In 2017, Dynasty filed a lawsuit against XFN and its subsidiaries in the local court in Xinjiang to reinstate its joint venture and seek compensation from the Chinese parties for any losses suffered as a result of the Chinese parties’ actions. Among other comments from the hearing in late December 2019, the local court did not recognize SRK’s NI 43-101 resource report because it was written by a foreign company, not compliant with Chinese standards. The company disagrees with these assessments, but due to travel restrictions and the Covid-19 lockdown over the past two years, the company has been unable to travel to China to follow up, but intends to do so as soon as travel bans are lifted to continue to pursue a fair and equitable outcome for its investment. Other alternatives for claiming compensation are also being studied.
When developing the resource in Xinjiang, the company employed more than 150 workers and support staff at its peak, and fair compensation was offered to all. Its workforce was made up of people from many ethnicities in the region; including Uyghurs who were represented at all levels of the workforce. All protocols and cultural practices were followed. Since 2008, all operational responsibilities and working relationships have been the sole responsibility of XFN. Dynasty had no involvement.
About Dynasty Gold Corp.
Dynasty Gold Corp. is a Canadian exploration company currently focused on gold exploration in North America with projects located in a greenstone belt in Ontario and in the Midas gold camp in Nevada. The Company is currently advancing the definition of the Thundercloud gold deposit which contains 182,000 oz of gold. The 43-101 Mineral Resources Report has been filed on www.sedar.com. The 100% owned Golden Repeat Gold Project is located in the Midas Gold Camp in Elko County, Nevada and is surrounded by a number of large-scale operating mines. In addition, Dynasty owns a 70% interest in the Hatu Qi-2 gold mine, pictured here, in the Tien Shan gold belt, Xinjiang, China, which it is in dispute with Xinjiang Non-Ferrous Industrial Metals Group. and its subsidiary Western Region Gold Co. Ltd. For more information, please visit the company’s website www.dynastygoldcorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF DYNASTY GOLD CORP.
Ivy Chong, President and CEO
For more information, please contact:
Ivy Chong, Dynasty Gold Corp.
Email: [email protected], Telephone 604.633.2100
This press release contains certain “forward-looking statements” that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/120282