First Drill Results From Inter-Citic's 2011 Exploration Program at Dachang Results Include 4.70 Metres at 25.9 GPT Au in New Area Including 1.0 Metre at 107.0 GPT Au
Results Include 4.70 Metres at 25.9 GPT Au in New Area Including 1.0 Metre at 107.0 GPT Au
TORONTO, ONTARIO -- (Marketwire) -- 12/05/11 -- Inter-Citic Minerals Inc. (TSX: ICI) ('Inter-Citic' or 'the Company') President and CEO James Moore, is pleased to report on drill results and progress from the 2011 exploration season at the Company's Dachang Gold Project.
The Company is pleased to report that drilling related to engineering and project feasibility at Dachang is now complete and assays are now being received. Exploration efforts are now focused on the discovery and outlining of a second potential open pit gold deposit. Results to date have been very encouraging.
This first set of reported drill results are 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 of these results include:
-- Drill hole CJV-1202 on the South East Area ('SEA') which reported an
interval of 4.70 m with an average grade of 25.90 GPT gold, including a
1.0 m interval of 107.0 GPT gold.
-- Drill hole CJV-1214A on the Acadia Zone which reported an interval of
4.0 m with an average grade of 6.05 GPT gold.
-- Drill hole CJV-1215 on the Acadia Zone which reported an interval of 8.0
m with an average grade of 3.91 GPT gold.
-- Drill hole CJV-1173 on the Acadia Zone which reported multiple
intercepts including an interval of 4.2 m with an average grade of 3.70
GPT gold (including a 1.0 m interval of 11.2 GPT gold) and another
interval of 4.3 m with an average grade of 2.63 GPT gold.
-- Drill hole CJV-1150 on the Acadia Zone which reported multiple
intercepts including an interval of 16.5 m with an average grade of 1.92
GPT gold.
-- Drill hole CJV-1154 on the Acadia Zone which reported an interval of 7.1
m with an average grade of 2.04 GPT gold.
-- Drill hole CJV-1217 on the Acadia Zone which reported an interval of
15.0 m with an average grade of 1.61 GPT gold.
-- Drill hole CJV-1179 on the South East Area ('SEA') which reported an
interval of 4.70 m with an average grade of 2.34 GPT gold.
DRILL PROGRAM PROGRESS
As of November 20, 2011, a total of 149 drill holes comprising 21,592 m of drilling had been completed at Dachang this year. Eight drills have been testing new exploration targets on the property and it is anticipated that the full 25,000 m program will be finished in December with results continuing to be reported during January and February, 2012.
Infill drilling was initiated on the initial discoveries made in 2009 and 2010 on the Acadia and XP/861 Zones in an effort to increase confidence in the potential of these discoveries and ideally with a view to demonstrating further economic potential at Dachang north of the DMZ through growth of the mineral resource estimates in these areas. All drill holes in these new areas are shallow and are drilled with the objective of discovering gold mineralization which may reside within natural open-pit depths.
Exploration of the Acadia Zone:
In Acadia, 51 drill holes comprising 5,400 m along with 50 new trenches totaling 3,148 metres have been completed at 40 m intervals along the strike of the zone with work continuing. Twenty holes with reported mineralization are reported below. Two separate lenses of mineralization have been discovered to date on the Acadia fault system. A western lens has been defined over a 400 m strike length and has now been cut off. Forty meter spaced drill fences continue to expand the eastern mineralized zone to the southeast into an area of with 6 to 15 m of overburden. Acadia East now has a strike length of at least 950 m and is still open to the east. Results from 20 of these holes are reported below.
Exploration of the Southeast Area:
To further expand the project's potential, an intensive trenching program was undertaken on a complex set of gold in soil geochem anomalies 5 to 8 kilometres southeast of the original DMZ discovery - an area known as the Southeast Area ('SEA'). A total of 132 trenches comprising 8,552 m of excavation appear to define three separate 120 degree trending fault systems. Trenching on anomalies to the north and south returned very encouraging results, and 38 new drill holes totalling 4,483 metres have now been completed in this 35 km2 gold district. Results from the first 14 of these holes are reported below.
Exploration of 861/XP Zones:
An important focus of the 2011 exploration drilling has been the 861/XP fault system which hosts mineralization which is characteristically similar to DMZ-style sulfides emplaced in graphitic fault structures. The XP and 861 discoveries were made several years ago on faults that at that time appeared to be 1,800 metres apart. So far in 2011 the Company has completed approximately 4,500 metres of trenching in 85 trenches spaced 20 to 40 meters apart along this fault structures. In the past both the XP and 861 Zones have shown consistent gold bearing sulfides within steeply south dipping faults. Drilling to date in 2011 appears to be confirming this observation. The total strike of the 861/XP Zones now appears to be 2.8 km. The Company is currently drilling an 1,100 m gap between these zones that appear to line up exactly along strike. Several additional drill fences have now been drilled along the strike of this fault, and results from the 861 and XP Zones are pending.
First drill results received from 2011 exploration are set out in the table below.
TABLE OF DRILL RESULTS
ACADIA ZONE
From To Length Assay
DDH Hole No. Section Dip Bearing (m) (m) (m) Au GPT
CJV-1150 -49 17.8 8.00 14.00 6.00 0.67
17.00 18.50 1.50 1.01
21.50 23.10 1.60 0.86
30.10 32.10 2.00 1.49
35.10 51.60 16.50 1.92
58.00 62.00 4.00 0.68
67.00 68.00 1.00 1.62
CJV-1154 -50 20 16.00 18.00 2.00 1.48
99.50 106.60 7.10 2.04
CJV-1156 -70 20 75.00 76.50 1.50 0.51
CJV-1164 -65 200 54.50 56.00 1.50 0.72
CJV-1167 -50 202 47.00 48.50 1.50 1.14
95.00 99.50 4.50 0.63
158.00 160.50 2.50 0.81
CJV-1173 -89 20 58.60 62.80 4.20 3.70
66.00 67.20 1.20 0.66
216.60 217.60 1.00 0.85
226.60 227.60 1.00 1.40
243.50 244.50 1.00 1.89
304.50 305.70 1.20 0.61
316.30 317.30 1.00 0.54
379.50 380.50 1.00 0.59
386.90 387.90 1.00 0.65
398.90 399.90 1.00 0.84
428.20 429.60 1.40 2.31
482.00 483.00 1.00 0.66
501.40 505.70 4.30 2.63
510.00 511.00 1.00 1.61
560.80 561.80 1.00 1.11
CJV-1180 -50 200 46.60 47.50 0.90 0.61
CJV-1182 -50 200 34.00 35.00 1.00 1.46
41.00 42.00 1.00 0.58
119.00 120.00 1.00 0.96
CJV-1194 -50 202 40.00 41.00 1.00 0.65
66.00 69.00 3.00 1.44
75.00 82.00 7.00 1.77
105.00 108.00 3.00 3.08
157.00 160.00 3.00 1.06
CJV-1198 -50 200 33.00 34.00 1.00 1.00
79.00 82.00 3.00 2.60
CJV-1208 -45 200 55.50 58.50 3.00 1.17
70.50 72.00 1.50 1.09
CJV-1211 -50 200 68.00 70.00 2.00 1.24
CJV-1213 -45 200 46.50 48.00 1.50 0.63
87.00 90.00 3.00 0.67
94.50 96.00 1.50 0.75
CJV-1214 -62 200 27.50 29.00 1.50 2.15
CJV-1214A -62 200 64.00 68.00 4.00 6.05
CJV-1215 -70 200 36.50 44.50 8.00 3.91
60.20 62.60 2.40 2.11
CJV-1217 -50 200 14.00 29.00 15.00 1.61
CJV-1218 -63 20 37.70 39.00 1.30 0.58
45.00 46.50 1.50 2.20
134.00 135.00 1.00 0.65
CJV-1221 25.00 36.50 11.50 1.18
CJV-1222 -80 200 42.50 44.00 1.50 6.68
65.00 69.50 4.50 1.33
84.00 86.00 2.00 0.90
89.00 90.50 1.50 0.79
DMZ-NORTH
From To Length Assay
DDH Hole No. Section Dip Bearing (m) (m) (m) Au GPT
CJV-1219 -45 20 39.67 41.67 2.00 2.11
52.67 55.67 3.00 2.25
77.67 79.17 1.50 0.57
CJV-1225 -72 20 58.17 59.67 1.50 0.64
SOUTH EAST AREA
From To Length Assay
DDH Hole No. Section Dip Bearing (m) (m) (m) Au GPT
CJV-1166 -75 20 69.50 71.50 2.00 1.64
CJV-1168 -50 20 156.00 157.00 1.00 0.95
174.30 177.30 3.00 2.21
CJV-1169 -50 20 19.10 22.10 3.00 0.69
28.10 33.40 5.30 1.76
36.40 37.40 1.00 1.28
47.40 48.40 1.00 0.51
58.40 59.40 1.00 4.44
61.50 62.50 1.00 11.60
CJV-1171 -70 22 45.80 46.80 1.00 0.73
126.90 128.00 1.10 0.56
168.50 169.40 0.90 1.30
CJV-1177 -50 20 26.70 28.70 2.00 2.04
39.40 40.40 1.00 0.98
74.20 75.20 1.00 0.72
79.60 81.00 1.40 1.48
CJV-1178 -50 20 111.60 114.60 3.00 0.99
CJV-1179 -50 20 78.50 80.10 1.60 1.13
84.20 85.20 1.00 1.68
128.00 129.30 1.30 0.65
171.20 176.20 5.00 0.66
183.60 188.30 4.70 2.34
CJV-1181 -77 20 86.50 87.50 1.00 0.56
112.00 113.50 1.50 0.59
CJV-1183 -78 20 19.20 20.70 1.50 0.67
CJV-1185 -50 20 89.60 90.60 1.00 0.51
CJV-1186 -50 20 38.00 39.00 1.00 0.55
42.00 44.00 2.00 0.74
61.50 62.50 1.00 0.53
CJV-1189 -45 20 75.30 76.30 1.00 11.00
CJV-1190 -50 20 14.50 16.00 1.50 0.92
33.50 34.80 1.30 1.47
90.50 92.90 2.40 1.39
CJV-1202 -50 20 29.10 33.80 4.70 (i) 25.90
(i) Includes a 1.0 m interval of 107.0 GPT
(i) 11.64 g/t when topcut to 40 GPT
Assay cut-off for the above table was at 0.5 gpt Au, however, intervals were
determined by geological interpretation of consistent mineralized zones.
Broader intervals may include waste intervals of up to 2m. There was no
evidence of nugget effect in the above results and one result was topcut to
40 GPT as noted above. True widths for the intervals above have yet to be
determined.
Sterilization Drilling Now Complete
As part of preparation for permitting and development Inter-Citic has now completed sterilization drilling in and around the Dachang Main Zone and associated construction areas. Sterilization (also known as condemnation drilling) tests areas around and below areas of proposed construction, such as buildings, roads, power lines, pipelines, waste piles or tailings disposal areas, to ensure that no valuable minerals lie below or adjacent to these structures. Sterilization drilling is a step required by the permit granting authorities.
The condemnation program, comprising 7,095 metres in 19 deep holes, is complete. Deep drill holes tested four sections spaced 600 metres apart south of the DMZ and PVZ proposed pits and their direct extensions. These deep holes tested the DMZ/PVZ fault structures at depths from 125 to 650 metres. A fifth drill fence tested an overburden covered area directly east of the DMZ fault. In general the holes drilled south of the development area continued to intersect the mineralized fault structures even at depths of 650 metres, showing the mineralization clearly continues to depth. In general, with few exceptions, this mineralization tends to be both narrower and lower grade than in the original deposit area. The fence drilled in the overburden covered extension of the DMZ was essentially barren.
This condemnation work basically confirmed the company's opinion that the DMZ/PVZ permitting plan can proceed without sterilizing any adjacent mineralization. The Company believes this work illustrates that additional mineralization will in time be developed adjacent to the original deposit.
The company has not yet received all assays from this program. Mineralized intervals received so far are listed below.
STERILIZATION OR CONDEMNATION HOLES
From To Length Assay
DDH Hole No. Zone Section Dip Bearing (m) (m) (m) Au GPT
CJV-1144 DMZ-E -75 20 139.20 140.20 1.00 1.07
CJV-1145 DMZ-E -75 20 120.00 121.00 1.00 1.36
CJV-1146 DMZ-E -76 21 139.65 141.65 2.00 0.56
CJV-1148 DMZ-E -75 22 73.50 74.50 1.00 8.89
114.10 115.10 1.00 0.72
160.60 161.60 1.00 0.83
195.60 196.60 1.00 3.16
CJV-1149 DMZ-E -75 20 64.10 65.60 1.50 1.09
CJV-1158 DMZ 12100 -85 35 507.00 509.00 2.00 2.17
578.50 580.50 2.00 1.49
626.50 627.50 1.00 2.18
CJV-1155 PVZ 4500 -87 22 36.00 39.40 3.40 1.12
143.50 144.50 1.00 0.75
150.10 156.80 6.70 1.17
194.00 195.00 1.00 0.76
245.60 246.60 1.00 0.50
265.50 266.50 1.00 3.18
309.70 310.70 1.00 0.63
378.80 379.80 1.00 4.45
416.50 420.50 4.00 0.83
463.40 465.20 1.80 0.76
588.00 589.00 1.00 0.81
593.00 599.50 6.50 2.14
606.10 607.10 1.00 0.65
613.60 614.60 1.00 0.58
686.10 687.10 1.00 0.74
CJV-1163 PVZ 4500 -70 18 37.70 42.20 4.50 1.75
44.70 50.70 6.00 0.84
249.50 250.50 1.00 1.75
CJV-1163A PVZ 4500 -75 20 29.30 30.30 1.00 1.01
40.50 42.00 1.50 0.72
CJV-1172A DMZ 4700 -87 15 32.70 33.70 1.00 0.88
40.50 42.50 2.00 1.74
193.30 195.30 2.00 1.15
308.00 312.00 4.00 2.89
326.00 328.00 2.00 1.71
343.50 344.50 1.00 0.77
392.80 402.80 10.00 1.73
428.30 430.80 2.50 1.21
445.50 446.50 1.00 3.08
This sterilization work in the DMZ area is now complete and the balance of the Company's 25,000 metre exploration program has been dedicated to expanding known areas of mineralization and testing new areas of trench discovery well away from the DMZ. Results from exploration drilling will be released as they become available.
In addition to the above, the Company also continues to test the 861 and XP Zones. So far in 2011 the 861 Zone has been tested with 31 drill holes totalling 3,424 metres on 40 metre sections. This close spaced sectional drilling has consistently intersected sulfide mineralization with widths of 4 to 15 metres in a very predictable fault structure. The western-most section on the 861 Zone was also mineralized and it is apparent the fault also continues much farther west than originally interpreted. Most of this work was completed recently, so few assays from this work have been received to date. Resource expansion continues with six drills presently working their way east to test the full extent of the fault in the direction of the original XP Zone discovery.
Results from these exploration drill holes will be reported as they are received.
Sample Methodology:
Drill core samples were taken at geologically significant intervals, typically over one metre. Core recovery was approximately 90%. The designated sample intervals were cut with a diamond saw by qualified technicians. One half of the cut core was selected for assay with the remaining half being placed back into the core box. Care was taken to ensure that neither half of the core represents a bias with respect to the nature and mineral content of the sample. The sample interval and methodology are consistent with industry standards. Drill core samples were shipped to SGS Geochemical Laboratories ('SGS') located in Kunming and Tianjin, China for sample preparation and 50g fire assay with AA finish. SGS is the world's leading inspection, verification, testing and certification company. Analytical work is performed in accordance with recognized standards such as ASTM, ISO, JIS, and other accepted industry standards. Accuracy and precision of the results is tested through the systematic inclusion of reference samples and duplicate samples.
Security of Samples: All of the samples collected at Dachang are stored in a restricted secure storage area. Samples are shipped by truck to Golmud and delivered to Inter-Citic's courier agent in Golmud for shipment to the various laboratories for analysis. Inter-Citic's courier agents are present at all transshipment points between Golmud and the laboratories. Exploration at Dachang was conducted with the assistance of the numerous professionals from the Qinghai Geological Survey Institute (No. 5 Institute), working in co-operation with Inter-Citic's technical team on site and supervised by Mr. Garth Pierce, Vice-President of Exploration.
Mr. Michael W. Leahey, P.Geo., the Company's internal Qualified Person under the requirements of National Instrument 43-101, has reviewed a copy of this press release.
Mr. B. Terrence Hennessey, P.Geo., of Micon International Limited is a Qualified Person under the requirements of National Instrument 43-101 and has 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 advancing its Dachang Gold Project in the People's Republic of China. 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 2010 Financial Statements, MD&A and Annual Information Form, along with updates, 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:
Inter-Citic Minerals Inc.
Stephen Lautens
Vice President, Corporate Communications
(905) 479-5072
ir@inter-citic.com
