With drilling related to engineering and project feasibility now complete at Dachang Gold Project, Inter-Citic Minerals is focusing its exploration efforts on the discovery and outlining of a second potential open pit gold deposit. Results to date have been very encouraging.
The first set of results has been received from early exploration and condemnation drilling at Dachang in areas of the property away from the Dachang Main Zone (DMZ), which is now in the permitting phase. Highlights from the South East Area include 4.70 metres at an average grade of 25.90 grams/tonne gold, including a 1.0 metre interval of 107.0 grams/tonne, and 4.7 metres @ an average of 2.34 grams/tonne.
Highlights from the Arcadia zone include 4.0 metres @ an average of 6.05 grams/tonne; 8.0 metres @ 3.91 grams/tonne; 4.3 metres @ 2.63 grams/tonne and 4.2 metres @ 3.70 grams/tonne including 1 metre @ 11.2 grams in the one hole; 16.5 metres @ 1.92 grams/tonne; 7.1 metres @ 2.04 grams/tonne; and 15 metres @ 1.61 grams/tonne.
As at November 20 a total of 149 drill holes for 21,592 metres of drilling have been completed at Dachang this year. Eight drills have been testing new exploration targets on the property and Inter-Citic anticipates that the full 25,000 metre program will be finished this month with results continuing to be reported during January and February, 2012.
The company is also making progress on the permitting process at Dachang. It continues to advance basic and detailed engineering work for the various design and construction elements, and will announce in the near term the placing of orders with suppliers for longer-lead items necessary to avoid delay in the construction of the flotation mill concurrent with application for permits. All key consultants to complete the studies necessary to permit the Dachang Main Zone and Placer Valley Zone have been engaged, and the company expects many critical components of these studies to be complete by the first quarter of 2012.
In addition to advancing work required under Chinese regulations, the company has engaged Micon International to prepare a new Preliminary Economic Assessment of Dachang under NI 43-101 and expects to publish this report in 2012. Inter-Citic is also working with its independent financial advisors on a comprehensive financial plan for the construction and development of Dachang.
President James Moore says, “After extensive exploration, including more than 160,000 metres of diamond drilling, we believe the DMZ, Inter-Citic’s first proposed mining area, displays robust preliminary economics as shown in our 2009 Preliminary Economic Assessment because of its large scale, relatively shallow open-pit characteristics, excellent gold resource grade and a competitive China cost platform that provides a low capital expenditure requirement to develop the company’s first mining operation.
“The company continues to aggressively explore the more than 50 additional targets at Dachang, outside the DMZ, while at the same time having transitioned from a successful and growing gold exploration story to one of pre-production. The company is on a track that will allow for the issuance of a mining permit and pre-development work to commence in early 2013.”