Summary
Muzhu Mining Ltd. (CSE: MUZU) is a Canadian publicly traded exploration company with a portfolio of highly prospective projects at various stages of development. In China, Muzhu Mining is focused in the Henan province where it has executed an option agreement to acquire an 80% interest in the XWG property and also executed a joint venture agreement to acquire an 80% interest in the adjacent LMM property which has exhibited similar silver, zinc, lead mineralization as the XWG property. Both properties are surrounded by 7 mining properties operated by Silvercorp Metals Inc. as well as two privately operated silver and gold mines, all located within the heart of China’s largest silver mining area known as the Tieluping Mining District. Two of the Silvercorp mines, LME & TLP intercepts show 1,003 to 6,455 g/t Silver with total estimated mine life of nearly 30 years.
Muzhu currently holds 100% interest in its Sleeping Giant South property located in the Val-d’Or region of Quebec, Canada home to the prolific Abitibi Greenstone Belt. The property is comprised of 15,000 acres and is contiguous to the Abcourt, Sleeping Giant Mine. Abcourt is currently in the process of re-opening the former Sleeping Giant mine site.
Stock Chart
Share Structure
| As of Mar 2023 | |
| Shares Issued | 27,105,129 |
| Warrants | / |
| Options | 1,580,000 @ C$0.14 |
| Fully Diluted | 28,685,129 |
Investment Highlights
Muzhu holds unique interest for investors because of:
- Extremely low CAPEX Costs required to initiate mining on its XWG and LMM Properties.
- Excellent infrastructure and workforce, including contract miners and contract truckers.
- Access to the Jinqiao Flotation Mill within 9 km which can process up to 1,000 tons per day.
- Contract milling costs are reasonable for Silver, Zinc, Lead as are contract miners and truckers.
- Local Mines employ short hole shrinkage stope mining technique including the Silvercorp mines.
- The mining process is simple and low cost with very limited company equipment required.
- Second focus in one of the best mining jurisdictions, in the Province of Quebec, Canada.
- Favourable tax credits and incentives.
- Sleeping Giant South has excellent potential for exploration or acquisition.
Projects:
HENAN PROVINCE XWG & LMM OPPORTUNITY
- Muzhu has recently initiated a new project by executing an option agreement to acquire up to 80% of the Silver, Zinc, Lead XWG Property in the Henan Province of China. Muzhu’s most recent acquisition is a joint venture providing an 80% interest in the LMM Property directly adjacent to the north of the XWG property with similar Silver, Lead, Zinc deposits.
- The LMM and XWG properties are surrounded by several operating mines, including the DCG mine to the north, HZG, HPG, and SGX to the west and adjacent to the TLP Mine, LMW and LME Mines on the Eastern border; all of which are owned and operated by Silvercorp Metals, Inc. (TSX:SXM) To the South and Southeast of the Muzhu’s XWG property are two Chinese owned gold and silver mines. In addition to the well-developed roads in the area, the property has access to water, power and a local skilled workforce, saving Muzhu significant time and money on infrastructure and staffing to develop the resources present on the property.
(Photos above are from XWG)
SLEEPING GIANT SOUTH OPPORTUNITY
- Muzhu’s Quebec project, the Sleeping Giant South, is comprised of 15,000 acres of claims directly south and contiguous to Abcourt Mines’ Sleeping Giant Mine. Abcourt recently announced an updated Mineral Resource Estimate (“MRE”) on December 13, 2022 which highlighted: 173,000 oz of indicated resource with an average grade of 7.14 g/t Au. 248,000 oz of inferred resources with average grade of 8.74 g/t Au. Abcourt has modeled 846 distinct gold structures from 1.19 million meters drilled. Abcourt is currently in the process of re-opening the former Sleeping Giant mine site.
Management Profiles
James Tong Interim CEO, Director
Mr. Tong has been active in Chinese joint venture companies for over 25 years. He provides business and strategic support to public companies as an Officer, Director, or Consultant, with a strong focus on projects pertaining to China, especially in joint venture investments.
Mr. Tong is knowledgeable in Chinese foreign investment laws and regulations and has been instrumental in creating a number of joint ventures in China. He first ventured Into China in the early 1990’s and started a Sino Joint Venture company with a Nanjing based wireless communication company to manufacture wireless handsets for the China Railway Station Network. When China opened up to allow foreign investment in the mining industry in the early 2000s, Mr. Tong formed several Sino Joint Venture companies focused on mining in Henan Province.
Most recently, Mr. Tong has been a Consultant with Matica Enterprises Inc. (CSE: MMJ) from 2009 to 2016 and with FTI Foodtech International Inc. (TSX-V: FTI) from 2014 to 2017.
Richard Tong CFO, Corp. Sec., Director
Mr. Tong earned his CPA, CGA designation in 1998 and is a graduate of the University of British Columbia with a Bachelor of Arts, majoring in Economics.
Mr. Tong was a Manager with TELUS for seven years where he was primarily focused on business strategy and planning, supporting internet, multimedia, and TELUS TV, within the teams of consumer marketing, venture capital, and finance. Prior to his tenure at TELUS, he was with several smaller companies in the industries of technology, entertainment, retail, mining, and manufacturing. Mr. Tong has spent the last ten years in consulting roles in accounting and human resources. Mr. Tong was the CFO of Matica Enterprises Inc. (CSE: MMJ) from 2013 to 2015.
Dwayne Yaretz Director
Mr. Yaretz is a seasoned entrepreneur with more than 35 years experience in corporate leadership. He began his international career as Vice-President of China Power Generation Corporation and Asia Power Engineering Corporation, developing co-generation facilities in Mainland China. Subsequently, Mr. Yaretz has acted for several publicly traded companies in various capacities including President and CEO, Corporate Secretary and Chief Financial Officer and is experienced in mergers and acquisitions as well as in the financing of numerous private and public ventures.
Mr. Yaretz has structured both Initial Public Offerings and Reverse Takeovers in various business sectors, Including technology, manufacturing as well as multiple mining exploration projects with properties in China, United States, Chile and Canada. Mr. Yaretz has also served on the Board of Directors with numerous companies involved in technology, clean-tech, agri-business, sustainable packaging, consumer electronics, as well as in the mining exploration sector.
Aaron Meckler CIM.FCSI Director
Aaron Meckler is an investment banker and seasoned corporate finance professional with experience in both public and private capital markets across a wide range of sectors, including real estate, technology, exports and cannabis. He has been involved in multiple public listings, and has advised companies on both buy-side and sell-side M&A. Mr. Meckler is the Co-Founder, CFO and Director of Amuka Capital, a boutique investment and merchant banking firm in Toronto, Ontario. He is also currently the CFO and board member to multiple reporting issuers and public companies in Canada.
Anthony Tam BSc. Eng Director and V.P. China Operations
Anthony Tam holds a Bachelor of Science degree in – Engineering Physics and a Bachelor of Sciences degree in – Mining Engineering, both from Queen’s University. He brings over 35 years of experience in the mining industry including numerous management positions in North America and China. With these companies, Mr. Tam has been instrumental in the acquisition, exploration, and development of numerous mineral properties. He has been successful in negotiating various joint venture agreements in China, along with conducting preliminary geological and engineering assessments of mineral properties.