TORONTO, Aug. 6, 2008 (Canada NewsWire via COMTEX News Network) --
TSX-V: GMN
GobiMinInc. (the "Company" or "GobiMin") is pleased to announce that theCompany has received an updated NI 43-101 compliant Mineral ResourceEstimate from Met-Chem Canada Inc. of Montreal ("Met-Chem") for itsYellow Mountain Deposit (also known as Huangshan Deposit).
At0.2% Ni cut-off, Indicated Mineral Resources are estimated at over 22million tonnes averaging 0.45% nickel, 0.30% copper and 0.03% cobalt.The new Indicated Resources almost doubled from the initial MineralResource Estimate of 12 million tonnes (See news release on June 11,2007). Inferred Resources now totals 44 million tonnes averaging 0.46%nickel, 0.30% copper and 0.03% cobalt.
The new mineral resourceestimate uses the new data of the 2007 drilling campaign totalling 38boreholes for 17,200 meters. Met-Chem uses the same cut-off gradefactor than the previous estimate that is considered appropriate atthis study stage. Resources estimation was done using computerizedgeological block models and square inverse distance interpolationmethod. Core samples were analyzed for copper, cobalt and nickel usingacid digestion with an Atomic Absorption Spectrometry finish. Based onMet-Chem's report, the Company has made an estimate of the metalcontent in the table below:
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Nickel
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New Estimate Previous Estimate
Classification In-Situ Nickel In-Situ Nickel * Change
Lbs Lbs %
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Indicated 221 million 113 million +96%
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Inferred 438 million 442 million -1%
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Copper
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New Estimate Previous Estimate
Classification In-Situ Copper In-Situ Copper * Change
lbs Lbs %
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Indicated 147 million 73 million +101%
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Inferred 290 million 287 million +0%
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Cobalt
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New Estimate Previous Estimate
Classification In-Situ Cobalt In-Situ Cobalt * Change
lbs lbs %
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Indicated 14 million 7 million +100%
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Inferred 28 million 27 million +4%
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* Previous NI 43-101 compliant resource estimate prepared by Met-Chem
on July 20, 2007
The factors behind the dramatic increase of Indicated
Mineral Resources are:
- About 50% of the increase (56 and 39 million lbs of In-Situ nickel and
copper respectively) results from the 2007 discovery of the Northwest
extension of mineralization of main Lens No.30 to near-surface.
- The 2007 drilling program resulted in reduced spacing between drill
holes which in turn brought a significant portion of the Inferred
Resources category into the Indicated Resources category. This
accounted for the other half of the increase in mineral resources.
Based on the new geological interpretation and model, Met-Chem estimates
that:
- The mineralization between Lens No.31 and Lens No.30 could be
connected and therefore significant tonnage can potentially be added
if a drilling campaign were successful in linking them.
- Lens No.34, situated between surface and below 400m, could be much
larger if more definition drilling is undertaken.
>>
TheCompany is actively preparing a new drilling campaign under theguidance of Met-Chem to test the continuity of the various lenses.
Mr.Raynald Jean, a Qualified Person within the meaning of NationalInstrument 43-101 and Senior Geologist at Met-Chem, has prepared theNational Instrument 43-101 resources evaluation which GobiMin will fileon SEDAR within 45 days.
GobiMin is advancing the constructionof the Yellow Mountain project towards a production capacity of 4,000tonnes/day mining and milling capacity. This adds to the Company'scurrent 1,500 tonnes/day capacity.
About GobiMin
GobiMinis a junior mining company with nickel/copper sulphide operations anddevelopment properties in northwestern China. Through its subsidiaries,Xinjiang Yakesi Resources Co. Ltd. and Hami Jubao Resources Co. Ltd.,GobiMin controls three concessions, within a 10-kilometre radius,totaling 455 hectares. In operation since 1999, GobiMin currentlyoperates two underground mines (Yellow Mountain East and Xiangshan) andis also currently developing its Yellow Mountain nickel/copper deposit.Yellow Mountain project is an intrusive complex 3.9 km long, 600 mthick on west side and 55 m on east side; extends at least 1,500 mbelow surface. GobiMin's common shares are traded on the TSX-VentureExchange under the symbol GMN.
FORWARD-LOOKING STATEMENTS AND RISK FACTORS
Thisnews release contains certain forward-looking statements. Theseforward-looking statements are subject to a variety of risks anduncertainties beyond GobiMin's ability to control or predict whichcould cause actual events or results to differ materially from thoseanticipated in such forward-looking statements. These risks include,but are not limited to, those associated with our capacity to financeour activities, the price of nickel and other commodities, reliance onsubcontractors and key personnel, and other risks and uncertaintiesdetailed from time-to-time in our filings with the Canadian securitiescommissions.There is no guarantee that the Yellow Mountain Deposit willbe successfully placed in commercial production.
Readers shouldnot place undue reliance on forward-looking statements given that (i)our actual results could differ materially from a conclusion, forecastor projection in the forward-looking information, and (ii) certainmaterial factors or assumptions which were applied in drawing aconclusion or making a forecast or projection as reflected in theforward-looking information, could prove to be inaccurate. Additionalinformation about (i) the material factors that could cause actualresults to differ materially from the conclusion, forecast orprojection in the forward-looking information, and (ii) the materialfactors or assumptions that were applied in drawing a conclusion ormaking a forecast or projection as reflected in the forward-lookinginformation, is contained in the Company's annual report and otherdocuments filed from time to time with the Canadian securitiescommissions which are available at www.sedar.com.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release.
To receive GobiMin press releases by email, please send a message to info
@gobimin.com and specify "GobiMin press releases" on the subject line.
SOURCE: GobiMin Inc.
James Xiang, Chief Financial Officer, GobiMin Inc., Tel: (416) 915-0133, james@gobimin.com, www.gobimin.com
Copyright (C) 2008 CNW Group. All rights reserved.