Chugai Mining Plans Boring Exploration for Gold Deposit in Japan

Chugai Mining, whose main business is refining and recycling of precious metals headed in Tokyo, Japan, announced on Wednesday its new mid-term management plan along which the firm targets recurring profit of 470 million yen in fiscal 2010 ending March 2011. The firm sets net sales at 35.8 billion yen, recurring profit to sales ratio at 1.3% and ROE (return on equity) at 3.3% in fiscal 2010 through business expansion of precious metal recycling. The firm also plans boring exploration for a new gold deposit in Japan.Chugai Mining aims to increase net sales for the precious metal recycling business to 26.9 billion yen in fiscal 2010, up by 30% from estimated sales in fiscal 2007. The firm plans to start platinum recycling business by a solvent extraction method and to establish a platinum recycling system with capacity of 20 kilogram per month. As to gold recycling, the firm already holds output capacity of 550 kg per month at Tokyo plant.The firm will carry out boring exploration for a new gold deposit inside its own mining area of Yugashima mine located in Izu Peninsula, Japan during January-May 2008. The boring depth will be 800 meters. The firm submitted an application form for the exploration to Kanto Bureau of Economy, Trade and Industry in September 2007. The planned budget is 45 million yen.There located many gold mines in Izu Peninsula. Yugashima mine was one of the largest mines which had been in operation by 1972.