Vancouver, British Columbia -- (
Marketwire - Nov. 3, 2010) -
China Gold International Resources Corp. Ltd. (TSX: CGG) –
On October 25th, the China Gold Group hosted a geological seminar on exploration and development of the Jiama Copper Poly-metallic project in Tibet. The purpose of the seminar was to bring together leading national and international experts to review the Jiama Project data and propose methods for efficient exploration and to accelerate the development and construction of the Jiama Project.
Seminar participants included Chen Yuchuan, Pei Rongfu, Zhai Yusheng and Mo Xuanxue (Members of Chinese Academy of Science and Chinese Academy of Engineering), Duo Ji (Member of Chinese Academy of Engineering and the chief of the Tibet Geological Exploration Bureau), Sun Zhaoxue (General manager of China National Gold Group and Chairman of China Gold International Resources Corp. Ltd.), Song Xin (Deputy General Manager of China National Gold Group and CEO of China Gold International), Greg Hall and John King Burns (Independent directors of China Gold International) and Prof. Craig Hart of the University of British Columbia. In total, over 50 experts and scholars attended the seminar from Chinese Ministry of Land and Resources, China Geological Survey, Chinese Academy of Geological Sciences, Tibet Geological Exploration Bureau, China University of Geosciences, Chengdu University of Technology and University of British Columbia.
The seminar focused on defining optimal methods for the conduct of exploration program and conceptual mine development that CGG can execute going forward to define and mine a potential porphyry system that has now been indicated by early drilling results to lie below the currently defined resources (see Jiama ITR on
www.sedar.com and August 30th 2010 press release) and to confirm the scope of the resource and production expansion potential of the Jiama project.
Tibet Huatailong Mining Development Co. Ltd. has begun mining operations, completed construction of and has commissioned a 6,000 tpd plant that is now shipping concentrates. It has also conducted a 50,000 meter drilling program in 2010 that has to date showed that the hornfel and skarn ore bodies are part of a larger system and that the skarn is open on strike. The geologists have postulated and drill results have indicted, that the hornfels and skarn have been charged by a porphyry system that lies below the skarn. The attendees reviewed the exploration achievements at the Jiama copper poly-metallic mine and also determined that the geological evidence accumulated to date, including the regularity of the ore formation, supports the indications of a porphyry system with larger scale mineralization and the potential for discovery of additional mineralization in the surrounding property at the Jiama Project.
Chen Yuchuan stated that the experience of the Jiama Project to date was worth summarization and promotion and that the project had surprising achievements in the past several years. He believed that the excellent results were attributable to the Government's support for mineral rights integration, investment and organization of state enterprises and scientific nature of the mineral exploration at the site, and that the Jiama Project was now conducted in a way where it would become a global example of an environmentally-friendly, economic, efficient and innovative mining operation within the next few years.
During the seminar, Sun Zhaoxue pointed out that over the course of the past two years China National Gold Group had finished a series of milestones such as mineral rights integration, geological exploration and development and construction with the goal being to build a large-scale, environmentally-friendly modern mine. Experts at the meeting explored further the ore prospecting method suitable for the Jiama Mine to provide a theoretical basis for an expansion of the Jiama Project.
During the meeting, the experts inferred that with further exploration the Jiama Project has the potential to host deep skarn and porphyry ore body containing significant additional mineralization.
Experts at the conference discussed in depth the potential for a number of porphyry systems and larger scale mineralization at the Jiama Project and the surrounding area, how and what methods to use to explore the potential of the surrounding and deep areas, how to carry out the next exploration phase, and other matters. They suggested strengthening the research of skarn deposit, lava activities and porphyry deposit in order to facilitate suitable exploration of deep resources and at the same time continue to develop and refine the conceptual mine plans so as to constrain drilling and other exploration activities within a reasonable appraisal of mining economics.
In December 2007, after its founding, Tibet Huatailong Mining Development Co. Ltd. did mineral rights integration at the Jiama Property and finished the work in 144 square kilometers of the Jiama mining zone in July 2008. Since then, over the course of the past two years almost RMB 200 million was invested in geological exploration of the Jiama Project and 120,000 meters drilling had been completed. This year 50,000 meters of drilling was planned and at present approximately 49,000 meters drilling and 85 drill holes have been completed, with 9 drill holes ongoing. It is expected that the whole 2010 drilling program will end in November 2010 and an updated resources and reserve report of the Jiama Project compliant with National Instrument 43-101 Standards will be filed by the end of the first quarter of 2011.
The Board of directors and management team of China Gold International have accepted the advice of the participant experts and CGG's management has designed a three stage exploration program that will be executed over the next three years. This program can be accelerated given the quality and quantity of early results.
China Gold International, following its contemplated acquisition of the Jiama Project and as part of this program intends to conduct further exploration of the open skarn-type and hornfels-type zones along strike and dip and fulfill magnetotelluric geophysical prospecting in the potential deep (below 700 meters) buried porphyry ore body using induced polarization geophysical prospecting in surrounding mineralization anomaly areas in order to refine drilling targets for further porphyry-type occurrences and for extensions of the skarn-type ore body.
Experts at the seminar believe that copper poly-metallic resources of Jiama Project should increase significantly in scope after the first stage of this exploration program is completed.
The scientific and technical information contained in this news release was supervised by Dr. Guo Yingting, an exploration Manager of China Gold International and a Qualified Person as defined under National Instrument 43-101. Dr. Guo has visited the Jiama Project during October 20th to 23rd and attended the Geological Exploration Seminar during October 25th to 26th of 2010.
About China Gold International Resources Corp. Ltd.:
China Gold International Resources Corp. Ltd. is a mining company whose principal property is the CSH Gold Mine. The Company began producing gold at the CSH Gold Mine in July 2007. The Company's shares are listed on the TSX under the symbol “CGG“. China National Gold Group Corporation, a Chinese state-owned enterprise owns approximately 39% of China Gold International Resources Corp. Ltd. shares.
Forward-looking statements
Certain statements made herein, including the results of the ongoing drill program at the Jiama Project, the potential for the project to host a porphyry deposit and other additional mineralization, timing for completion of an updated resource and reserve estimate and other statements relating to matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forward-looking information“ within the meaning of applicable Canadian securities legislation and “forward-looking statements“ within the meaning of the “safe harbor“ provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information and statements are typically identified by words such as “anticipate“, “could“, “should“, “expect“, “seek“, “may“, “intend“, “likely“, “plan“, “estimate“, “will“, “believe“ and similar expressions suggesting future outcomes or statements regarding an outlook. All such forward-looking information and statements are based on certain assumptions and analysis made by China Gold International Resources Corp Ltd management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading “Risks and Uncertainties“ elsewhere in the Company's MD&A filed at www.SEDAR.com. The reader is cautioned not to place undue reliance on forward-looking information or statements. Except as required by law the Company does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future, unanticipated events.
For more information, please contact
China Gold International Resources Corp Ltd.
Frank Lagiglia
Investor Relations Manager
+1.778.668.9883
info@chinagoldintl.com
www.chinagoldintl.com
