Inter-Citic Minerals says results from ongoing drill holes and trench sampling at 861 Zone on its Dachang property reveal multiple gold intercepts.
Highlights of the 2011 program include an interval of 17 metres with an average grade of 4.47 grams/tonne gold, one interval of 1.8 metres @ 8 grams/tonne gold and another interval of 11.5 metres @ 1.97 grams/tonne gold.
Inter-Citic now believes that the 861 Zone is the western end of a larger fault structure within the property. The program to evaluate the 861 and XP Zones has involved trenching over a strike length of 1500 metres at intervals of 20 metres to 40 metres and to depths of up to 120 metres.
The company has dedicated about 5945 metres of drilling and 4500 metres of trenching to evaluating the potential of this discovery.
Inter-Citic’s president James J Moore says further engineering analysis will determine the zone's suitability for open-pit mining. “The results to date illustrate a well mineralized fault structure hosting sulfide bearing gold mineralization similar to the Dachang Main Zone. The 861/XP fault has now been defined over a total 2.8km strike length and remains open along the strike.
“The company’s objective is to define new open pit resources which will be accretive to shareholder value given the potential impact upon the project's overall production profile and corresponding economic impact,” James Moore says.
The Dachang Project is centrally located in the Qinghai province in western China. It covers 279sqkm of newly-discovered at-surface gold mineralization in an under-explored district. Inter-Citic has been actively exploring the site for seven years and has reported a measured and indicated resource of 1.88 million ounces of contained gold. The company started a 25,000 metre drill program and 10,000 metre trenching plan in August 2011.
Trenching continues to be one of the most successful and cost-effective methods of gold exploration at Dachang due to the thin soil cover and near-surface mineralization observed throughout the property. Results are continuing to be received from exploration drill holes and trenches.