Jan 11, 2010 09:18 ET
A New Area And Style of Gold Mineralization Discovered by Inter-Citic 9 Kilometres West of The Dachang Main Zone
Drill Hole Returns 21.3 Metres of 2.3 GPT Gold From A Disseminated Sulphide Intercept In A Highly Altered Carbonate Host.
TORONTO, ONTARIO--(Marketwire - Jan. 11, 2010) - Inter-Citic Minerals Inc. (TSX:ICI) ("Inter-Citic" or "the Company") President and CEO James Moore, is pleased to report a potentially significant new gold discovery along the major carbonate thrust fault at its Dachang Gold Project in China.
"We are quite excited as this is not only a new discovery far from the existing resource areas, but more importantly it represents a new type of mineralized structure not encountered before at Dachang," said James Moore, President and CEO of Inter-Citic. "This is the second new discovery area from the 2009 exploration drill program and the first in a completely new host rock. Significantly, the dominant carbonate thrust fault where this drill hole is located could be an ideal host for high grade gold mineralization and further discoveries."
"The gold mineralization intersected by hole CJV-914 is not typical of the fault controlled sulfide mineralization we have seen previously at Dachang," said Garth Pierce, VP of Exploration for Inter-Citic. "The sulfides are disseminated throughout a highly altered carbonate unit near the base of a strong north dipping thrust fault. Work here is very preliminary, but trenching and drilling of this fault late in the 2009 exploration program allowed us to uncover altered carbonates hosting disseminated sulphides along a 1500 meter strike length of the Carbonate Thrust Fault. It is a very interesting discovery," he said.
Inter-Citic President James Moore further commented: "During 2008 and 2009 circumstances caused us to focus on the in-fill drill work required to advance the Dachang Main Zone. The ability of our team led by Garth Pierce during the latter part of 2009 to aggressively step-out in the Dachang area and test new targets has affirmed the tremendous exploration potential at Dachang and the corresponding capacity of our Company to create shareholder value through exploration success."
Exploration hole CJV-914 was drilled 9 km northwest of the Dachang Main Zone resource area ("DMZ") and tested the base of the Carbonate Thrust Fault, a dominant fault structure which extends for 18 kilometers across the entire Dachang property. Regionally this east/southeast striking fault is part of the much more extensive regional Gaude Madou Fault structure. Detailed drilling results are set out in the chart below:
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From To Length GPT
DDH Hole No. Dip Azimuth (metres) (metres) (metres) Au
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CJV-914 -75 20 39.70 62.00 21.30 2.27
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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 none were topcut. True widths for the intervals above have yet to be determined.
The Carbonate Thrust Fault structure occurs at Dachang with a thick sequence of highly altered carbonate rocks which appear to be over-thrust on top of the highly deformed pelitic sediments which host the Dachang Main Zone gold mineralization and the many parallel gold geochem anomalies previously tested by the company.
Inter-Citic has drilled five additional exploration holes along the Carbonate Thrust Fault in the general area of hole CJV-914. Other disseminated sulfide zones have been intersected in these widely spaced holes and these results will be reported as received.
A location map showing the location of drill hole CJV-914 in relation to the carbonate fault and the rest of the Dachang property is available on the Company's website at: https://www.inter-citic.com/maps.htm.
Inter-Citic is conducting multi-element geochemical studies on the mineralized carbonate rock and its associated disseminated sulphides and follow-up metallurgical studies will be conducted separately to determine the appropriate recovery process.
Trench Results:
Late in November 2009 trenching began to test gold soil geochemical anomalies along the central portion of the Carbonate Thrust Fault near hole CJV-914. Generally the terrain was too frozen due to the onset of winter to be effectively tested. Trenching late in the year at Dachang typically does not produce optimal results, but in an effort to support exploration drilling late in 2009, widely spaced trenches were placed along a 2 km strike length of the fault. Trenching results reported below are not definitive but simply reflect initial testing which will have to be expanded further in 2010. These trenches typically exposed highly deformed and altered carbonate units near the base of the Carbonate Thrust Fault structure.
Below is a table of significant trench results near drill hole CJV-914:
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Trench From To Meters Au (g/t)
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A2TC4101 12.50 16.50 4.00 1.37
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A2TC4201 17.00 21.00 4.00 1.59
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A2TC4401 49.00 50.00 1.00 3.12
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A2TC4701 0.00 11.00 11.00 1.11
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44.00 53.00 9.00 1.33
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(Assay cut-off for the above table was at 10 g/m Au, however, intervals were determined by geological interpretation of consistent mineralized zones. Broader intervals may include waste intervals of up to 2m.)
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 of the results is tested through the systematic inclusion of reference samples and duplicate samples.
Trench chip-channel samples were taken at geologically established intervals consistent with the width of each mineralized area exposed in the trench. The sample interval was typically one meter. The individual samples collected over the designated intervals are representative of the material for the respective intervals. The sample interval and collection methodology are consistent with industry standards.
Each of the trenches listed above was excavated on lines spaced variably at a minimum of 200m to a maximum of 600m intervals. Trenches were excavated by backhoe and most uncovered broken bedrock at depths of 1.5 to 2.5 metres. All trenches are mapped in detail and channel samples are taken at one metre intervals across all mineralized zones.
Samples were collected using 1.0 to 1.5 metre chip samples, each weighing approximately 3 to 5 kg. Qualified Chinese geologists and technicians under the direct field supervision of Mr. Garth Pierce, Inter-Citic's Vice President of Exploration, carry out the trench sampling.
Each sample is secured and transported to the Qinghai Institute of Rock and Mineral Testing and Application, located in Xining, Qinghai, PRC, or to the Research Center of Xi'an Institute of Geology and Mineral Resources located in Xi'an, Shaanxi Province, PRC, both independent arm's length Chinese government laboratories. At each respective laboratory, each sample is dried, crushed and a portion ground to minus 200 mesh. The gold content of each sample was determined by analyzing a 20 gram sample of the minus 200 mesh material through an aqua regia acid digestion and then analyzed for gold using atomic absorption. Accuracy of the results is tested through the systematic inclusion of standards and replicate 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, working in co-operation with Inter-Citic's technical team on site and supervised by Mr. Garth Pierce, Vice-President of Exploration.
Mr. Gerald Bidwell, P.Geo., the Company's internal Qualified Person under the requirements of National Instrument 43-101, has reviewed the results reported in 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 with property in the People's Republic of China, including its Dachang Gold Project in Qinghai Province. 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 2008 Financial Statements 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.