Maxy Gold Corp. - About China

Why Stay In China

Diversity of resources, need for resources locally
Leading mining country
Absence of major foreign players, diversity of resources
Huge exploration potential, one of the best world wide
Need for regional development instrument
Real underexplored country
Excellent base metal and gold exploration potential
Professional expertise rapidly developing
Natural patience of Chinese
China 1993, more than 270,000 mines
China 2004, decrease to 145,000 mines
includes:

527 large-size
1,354 median-size
140,000 small size
Work force: 9.3 million people
Total production value of mining industry
1993 1980.07 billion RMB
2004 4000 billion RMB
China has a long tradition of mining
Mining is traditionally done by farmers
- Earn money from mining between crops
- No planning, just dig what they see
- Small scale, simple or no processing
- No environmental control
- Only suitable for ores they can see
Farmer mining can be profitable, but only on a small scale and for very short time
Not suitable for large mining business
- Lack geological / engineering / financial / management skills
- Lack large capital needed
Historically, exploration in China has been done by teams supported by Provincial and Central governments
Commercial success was not the aim
When discoveries are made they are rushed into small-scale production
The result
- Large deposits are destroyed by inefficient small-scale mining
- Huge environmental damage
- Common loss of lives