Inter-Citic Reports Dachang Mineral Resource Update
Thu Apr 10, 1:00 PM
ca.news.finance.yahoo.com
ZURICH, SWITZERLAND--(Marketwire - April 10, 2008) - Inter-Citic Minerals Inc. (TSX: ICI.TO) ("Inter-Citic" or "the Company") President and CEO James Moore, reported today at the European Gold Forum that the Company has updated its mineral resource estimate for its Dachang Gold Project located in Qinghai, China. The updated resource estimate incorporates all results from the Company's 2007 drill program which included both infill and exploration drilling.
"Our 2007 exploration program was very successful on many fronts," said Mr. Moore. "Our combined in-fill and resource expansion drill program has achieved the desired effect of enhancing our confidence in mineral continuity within the previously defined resource area, as well as our ability to further expand the resource both on strike and at depth. We will soon commence our 2008 exploration season which anticipates among other things a drill program of up to 50,000 metres. Approximately half of this program will be directed at detailed in-fill drill work and the other half directed at expanding the resource along strike and at depth. The Company has more than adequate financial resources to conduct this work as well as commencing preliminary engineering studies which will be necessary for a Scoping Study of the project."
RESOURCE ESTIMATE UPDATE:
The Inferred Mineral Resource Estimate on the Dachang Main Zone ("DMZ") area of the property has increased to 23.6 million tonnes grading approximately 3.51 gpt Au (approximately 2.66 million oz Au contained). This represents an increase from the previously published Mineral Resource Estimate reported in the Company's technical report dated June 26, 2006 which reported 14.8 million tonnes grading 3.7 gpt.
- In 2007, 12,675 meters or 45% of the total 2007, program was directed at targets east of the established 2006 resource. Almost all of the increase in the current inventory came from this eastern extension.
- The great majority of this resource estimate occurs from mineralization at surface to depths of less than 150 metres.
- The previously reported inferred mineral resource on Dachang's North River NR-2 anomaly was not further tested in 2007 and remains at 1.3 million tonnes grading 5.81 gpt Au (approximately 239,000 oz Au contained) as described in the Company's press release of December 12, 2005.
- The Dachang project combined total inferred mineral resource therefore now stands at 24.9 million tonnes with an average grade of 3.63 gpt Au (approximately 2.90 M oz Au contained), as shown in the chart below:
Current Total Resource at Dachang:
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LOCATION Tonnes Grade Contained Oz Au
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Dachang Main Zone (DMZ) 23.6 million 3.51 gpt 2.66 million
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NR-2 Anomaly 1.3 million 5.81 gpt 0.24 million
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TOTAL 24.9 million 3.63 gpt 2.90 million
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INFILL DRILLING RESULTS:
A detailed infill drill program on the DMZ was undertaken by the Company in 2007 with the aim of confirming continuity of grade and mineralization. Drilling along a 900 metre-long area of the DMZ, 2007's infill drill program in fact increased both grade and contained ounces of gold, and has shown good geological continuity on the closely spaced drill sections.
- Of the 11,637 meters directed at infill drilling in the DMZ, a majority was directed at a 900 meter strike length of the DMZ (from sections 12800 to 8300) to test mineral continuity and grade.
- In 2006, 120 meter spaced drill fences returned an 890 meter section on this portion of the DMZ that contained 7.8 million tonnes grading 3.49 gpt, or 980 ozs Au per linear meter tested.
- In 2007 with much closer spaced 40 meter sections, an 820 meter section of this same area returned 7.5 million tonnes grading 3.56gpt, or 1,041 ozs Au per linear meter tested. This represents an increase over 2006 as to both grade and gold contained per linear metre.
DACHANG MAIN ZONE STILL OPEN AT DEPTH AND ALONG STRIKE:
During the 2006 and 2007 drill programs, the fault controlled mineralization that hosts the gold at Dachang has now been extended off the eastern end of the DMZ by approximately 1.5 kilometres and now defines a total 3.5 km strike length. The central and eastern portions of the existing DMZ still remain open to additional resource expansion above 150 meters and will require further testing.
- Below 150 meters the DMZ along much of its strike is yet to be tested. Also the most easterly sections of the fault so far tested (sections 2400E and 2900E) show that the DMZ mineralization is still strong and open in this direction.
- The fault structure going east has also changed - the DMZ fault flattens in the east to a 30-35 degrees dip which has increased the dip length of the fault above 150 meters by more than 50%.
2008 EXPLORATION PLANNING UNDERWAY:
The Company intends to resume exploration at Dachang in early May, 2008, including an expanded diamond-drilling program of up to 50,000 metres. Approximately 25,000 meters of this program will focus on the existing inferred resource area with the aim of increasing a large percentage of this inventory to an indicated level. This work will require proper wire frame modeling and engineering evaluation of the resource and will be the primary focus for the initial phase of work at Dachang. Exploration drilling will continue however with the remaining 25,000 meters of drilling to focus on the eastern extensions of the DMZ, internal areas of the DMZ open to expansion, Placer Valley and new geochem targets in that order of priority. While the DMZ mineralization remains open at depth and to the east; further testing of this structure will primarily focus on shallow potentially bulk-mineable mineralization. Once the detail infill exploration drilling begins the Company intends to initiate work on a preliminary assessment (scoping study) in conjunction with industry consultants. Some of the detail infill drill program may be directed by these consultants to address engineering aspects of the project.
MINERAL RESOURCES ESTIMATE DETAILS:
The inferred mineral resource estimate for the Dachang DMZ has been updated following the Company's 2007 drill program. A previous mineral resource update for the DMZ was reported in the Company's press release of March 20, 2007.
In 2007 the company completed 196 drill holes for a total of 27,926 metres of drilling at Dachang. Of these, 24,312 metres of drill testing was on the Dachang Main Zone (DMZ) and it's eastern extensions. A total of 164 drill holes were completed on the DMZ in 2007, representing both infill drilling to confirm 2006 drill intercept continuity and drilling in new areas that resulted in the extension of the DMZ by approximately 1.5 kilometre to the east of the original 2006 resource area. Gold mineralization was intersected in 152 or 93% of these holes on the DMZ.
In addition to drilling on the DMZ and its extension, 3,614 meters in 32 holes of HQ drilling was completed on the Placer Valley and Ruby Zones during the 2007 exploration program. None of the results from drilling on the Placer Valley and Ruby Zones has been included in this mineral resource estimate as current drilling in those areas is on widely-spaced sections. Inter-Citic intends to return to Placer Valley in particular for additional drilling in 2008.
The updated inventory is based on assay intervals using a 0.5 gram cut-off with individual composites carrying up to 3 meters (drill width) of internal waste. Individual blocks had to exceed 0.90 grams per tonne and a combined gram meter value of 5 gram meters to be included in this calculation. Individual intercepts below this block cut-off grade were used when necessary to allow for consistent geological interpretation and to avoid a misleading geological interpretation regarding the deposit grade. A detailed statistical analysis of histograms, log histograms and probability plots, looking for log-normal population distributions revealed that the number of samples requiring top cutting was not statistically significant (only 3 of 7,500+ assays). A top cut was employed on assays greater than 40 gpt. The mineral resource estimate included all existing trench and drill hole data and was prepared using a polygonal method on cross-sections with a maximum area of influence from any individual assay intercept of 65 m. Most intercepts have an area of influence of less than 50 m. A specific gravity of 2.92 was used for this inventory based on a consistent set of tests taken by the Company and its independent consultants.
The updated mineral resource was prepared for the Company by Michael W. Leahey, P.Geo., Inter-Citic's internal "Qualified Person" as that term is defined under National Instrument 43-101. The Company's mineral resource estimate was reviewed by Mr. B. Terrence Hennessey, P.Geo., of Micon International Limited, the Company's independent Qualified Person with respect to the Company's mineral properties. Mr. Hennessey has reviewed the estimate and accepted overall responsibility for it. The estimate was completed as at April 9, 2008 and complies with the CIM resource definitions referenced in National Instrument 43-101.
As this mineral resource estimate reports an increase of more than 100% in the Company's mineral inventory previously reported in an independent technical report under National Instrument 43-101, Inter-Citic will be filing a new independent technical report within 45 days of this release.
This estimate of inferred resources is not affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
None of the inferred resources at Dachang have been sufficiently drilled to demonstrate economic viability. Additional drilling will be required to upgrade inferred resources to an indicated or measured resource. There can be no certainty that further drilling will enable inferred resources at Dachang to be upgraded. Maps of the Dachang Gold Project can be found on the Company's Website: www.inter-citic.com.
Mr. Michael W. Leahey, P.Geo., and Mr. B. Terrence Hennessey, P.Geo., both Qualified Persons under the requirements of National Instrument 43-101, have reviewed a copy of this press release.
On Behalf of the Board:
James J. Moore, President & CEO
ABOUT INTER-CITIC:
Toronto-based Inter-Citic Minerals Inc. is an exploration and development company with properties in the People's Republic of China. The Company has strategic partnerships with several large financially strong and established groups in China to facilitate investment in China for both Western and Chinese partners. Inter-Citic is listed on the TSX under the symbol ICI. Inter-Citic's website is www.inter-citic.com.
Investors are encouraged to review "Risk Factors" associated with the Dachang project as outlined in the Company's 2007 Financial Statements and Annual Information Form available on the SEDAR website at www.sedar.com. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement. The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Contacts
Stephen Lautens
Inter-Citic Minerals Inc.
Vice President, Corporate Communications
(905) 479-5072 x 227
Email: stephen@inter-citic.com
Website: www.inter-citic.com |
