Bazhong City is located in the western part of China at the border of Sichuan and Shaanxi provinces the southern foot of Micang Mountain in Daba Mountain Range. It is adjacent to Shaanxi Province in the north Dazhou City in the east Nanchong City in the south and Guangyuan City in the west (Geographical Coordinates: 106°21' ~ 107°45' E 31°15' ~ 32°45' N). It has jurisdiction over three counties and two districts covering an area of 12293.28 square kilometers. It is an emerging growth pole of Sichuan Northeast Economic Zone and a comprehensive reform pilot area for the revitalization and development of the old revolutionary areas in Sichuan and Shaanxi. Bazhong is an important concentrated distribution area of minerals in China rich in mineral resources and enjoys the reputation of "treasure box" of Daba Mountain. 51 categories (including subcategories) of minerals have been discovered there of which 13 categories have resource reserves and 42 mining areas have identified resource reserves. The reserves of nepheline ore and graphite ore rank first and second in the province.

I. Overview and Main Characteristics of Mineral Resources

As of the end of 2015 51 categories (including subcategories) of minerals have been found in Bazhong including 4 categories of energy minerals 14 categories of metallic minerals 31 categories of non-metallic minerals and 2 categories of aqueous and gaseous minerals. The mineral resources are mainly characterized by numerous categories concentrated distribution obvious strata control characteristics prominent position of dominant minerals and wide distribution and great potential of geothermal resources.

Numerous Categories of Mineral Resources: There are 13 categories of minerals with proven reserves 42 registered mining areas with reserves and about 350 orefields (including mineralized spots) in Bazhong.

Concentrated Distribution: The mineral resources in Bazhong are mainly distributed in Nanjiang County and the north of Tongjiang County and the metallic minerals in the city are mainly gold copper lead-zinc and iron. Most of the mineral resources are distributed in the north of Nanjiang County the north of the Pinghe - Yangba - Qiaoting - Huitan line. The host rocks are mainly tectonic magmatic rocks of Lvliang period and the metallic minerals are mostly found in the magmatic rocks such as diorite and gabbro. In the city the non-metallic minerals are generally distributed in the south of the Pinghe-Yangba-Qiaoting-Huitan line and the coal mines are mostly distributed in the middle of Nanjiang County and the north of Tongjiang County presenting an east-west stripe distribution.

Obvious Mineral Strata Control Characteristics: The strata in Bazhong area have the characteristics of angular unconformity drastic ascending and descending movements and great changes of sedimentary lithofacies and construction. The ore-bearing condition of each tectonic layer has strata-controlled rules. In Lvliang period the tectonic layer (basement tectonic layer) (Pt) is mainly composed of Proterozoic metamorphic rocks and magmatic rocks and the thickness of metamorphic rocks is more than 2300m. Minerals such as iron copper asbestos graphite potassium feldspar nepheline bauxite and pyrite are mainly produced. The Caledonian tectonic layer (Z—S2) is angular-unconformable above the Lvliang tectonic layer. It is composed of Sinian-Middle Silurian Marine sand shale and carbonate rock with a thickness of 3100m and produces minerals such as lead zinc fluorite oilstone and dolomite (Sinian). The Indosinian tectonic layer (P—T2) is parallel- unconformable above the Caledonian tectonic layer mainly composed of Marine carbonate rocks with a small amount of mud shale with a thickness of 2300m and produces minerals such as coal pyrite gypsum and limestone. The Yanshanian tectonic layer (T3—K) is parallel-unconformable (local microangular unconformable) above the Indosinian tectonic layer. It is composed of sand and mudstone of inland fluvial facies swamp facies lakeside facies and lacustrine facies with a thickness of 5400-5600m. It produces minerals such as coal siderite shale for bricks and tiles and sandstone for building.

Prominent Position of Dominant Minerals: The dominant minerals in Bazhong are iron ore graphite limestone and nepheline ore. There are 13 main magnetite mining areas in the city and the reserves of magnetite are 30717300 tons accounting for 0.3% of the reserves of iron ore in Sichuan Province but the single-category magnetite accounts for about 10% of the province with an average grade of TFe34.74% easily separated. It is predicted that the reserves of skarn type iron ore will increase to 115.54 million tons showing a good resource potential. There are four major graphite mining areas in the city and the proven reserves of crystalline graphite are 7.5603 million tons ranking second in Sichuan Province which shows better strategic advantages in Sichuan Province and great development potential. There are two mining areas of limestone for cement in the city with a reserve of 278 million tons and an existing mining capacity of 5.3 million tons/year. The quality of limestone for cement is good and the potential is great. There are two nepheline mining areas in the city and the reserves of nepheline are 6.933 million tons. Pinghe nepheline deposit is a large nepheline deposit ranking first in the province and fifth in China. Nepheline ore is a characteristic ore in Bazhong.

Wide Distribution and Great Potential of Geothermal Resources: The geothermal temperature in Bazhong increases with the increase of the buried depth and rises in a certain gradient below the normal temperature zone. The geothermal gradient in the area is about 1.7℃ ~ 2.0℃. The geothermal resources belong to the medium-deep circulating pore-fissure conduction geothermal. There are many thermal reservoirs in the area. The main thermal reservoirs are the strata of Leikoupo Formation of the Middle Triassic Jialingjiang Formation of the Lower Triassic and Permian and Sinian Dengying Formation and the secondary thermal reservoirs are the strata of Ordovician Cambrian and Penglaizhen Formation of the Upper Jurassic. There are abundant resources in the area. According to preliminary estimation the total deep resources of the main thermal reservoirs in the area are about 46679.12m3/d. The geothermal reservoirs are distributed in three counties and two districts of Bazhong City. The geothermal resources in the area are mainly buried middle-deep circulating karst and clastic rock groundwater with circulating depth up to 1500-3000m. The hot mineral water in the area generally contains trace elements such as fluorine strontium and radon and minerals such as metasilicic acid and metaboric acid. The strata of Penglaizhen Formation of the Upper Jurassic in the area are distributed in the region with better economic and social development and have a relatively good development prospect.

II. Current Status of the Exploration Exploitation and Utilization of Mineral Resources

Current Status of the Exploration of Mineral Resources: The 1:200000 regional geological survey has covered the whole city the 1:200000 regional geochemical survey has completed in Nanjiang and Zhenba areas and the 1:50000 regional survey has completed in part of the northern part of Nanjiang while the Micangshan basement metallogenic belt has not been fully covered. The whole area of Bazhong City is covered by MSS TM data and aerial photos. By the end of 2015 there were 50 exploration rights in Bazhong City involving 14 categories of minerals such as coal iron copper lead zinc titanium gold graphite potash feldspar nepheline syenite granite marble uranium ore and pyrite.

Current Status of Development Utilization and Protection: 16 categories of minerals have been developed and utilized including coal iron ore lead ore zinc ore graphite ore gypsum ore limestone for cement limestone for construction stone quartzite for glass sandstone for construction shale for bricks and tiles mudstone for cement mixing nepheline syenite marble for finishes marble for construction and mineral water. There are 195 mines in Bazhong City including 26 provincial-level certified mines 11 municipal-level certified mines and 158 county-level certified mines. Most of such mines are small ones. The mines are composed of 4 large-sized mines 13 medium-sized mines and 178 small-sized mines. Large and medium-sized mines account for 8.72% of the total. The mines are mainly scattered county-level certified mines of shale for bricks and tiles.

Current Status of Geological Environment Protection and Rehabilitation of Mines: In view of the status quo and problems of ecological environment in Bazhong mining areas the project of coal mining subsidence treatment in Nanjiang Shuidong mine field and the project of geological environment treatment in Ganshishan mine of Nanjiang Coal and Electricity Co. Ltd. (Nanjiang Coal Mine) have been implemented. The environmental restoration and treatment project of Hongshan Iron Mine in Nanjiang County has been implemented. The geological environment restoration and treatment project of Taoyuan Granite Mine and the demonstration project of mine restoration and treatment in Shuidong area of Nanjiang County have been implemented. The treatment contents mainly include the restoration of land resources damage the restoration of landform and landscape damage the restoration of water resources and water environment damage and the restoration of mine geological disasters.

Current Status of Economic Development in Mining: The total output value of Bazhong's mining industry reached 341 million yuan in 2007 and reached 1.109 billion yuan in 2015 with an overall increase of 225% and a compound growth rate of 15.88%. There are 5116 employees and the total profit is 53.738 million yuan. Mining economy accounts for 2.21% of the total output value of Bazhong City.