NR - Permitting Progress at Inter-Citic's DachangPermitting Progress at Inter-Citic's Dachang Gold
TORONTO, ONTARIO -- 11/29/11 -- Inter-Citic Minerals Inc.(TSX:ICI) ("Inter-Citic" or "the Company") President and CEO JamesMoore, is pleased to provide an update on permitting progress and theadvancement of the Company's Dachang Gold Project.
"Inter-Citic's work at Dachang originally began as a'greenfields' project," said Inter-Citic President James Moore. "Afterextensive exploration, including over 160,000 meters of diamonddrilling, we believe the Dachang Main Zone, (the "DMZ"), Inter-Citic'sfirst proposed mining area, displays robust preliminary economics asshown in our 2009 Preliminary Economic Assessment because of its largescale, relatively shallow open-pit characteristics, excellent goldresource grade and a competitive China cost platform that provides a lowcapital expenditure requirement to develop the Company's first miningoperation. The Company continues to aggressively explore the morethan 50 additional targets at Dachang, outside the DMZ, while at thesame time having transitioned from a successful and growing goldexploration story to one of pre-production. The Company is on a trackthat will allow for the issuance of a mining permit andpre-development work to commence in early 2013," said Inter-CiticPresident James Moore.
Permitting Update
The Company continues to advance basic and detailed engineeringwork for the various design and construction elements, and willannounce in the near term the placing of orders with suppliers forlonger-lead items necessary to avoid delay in the construction of theflotation mill concurrent with application for permits. All keyconsultants to complete the studies necessary to permit the DachangMain Zone and Placer Valley Zone ("PVZ") have been engaged, and theCompany expects many critical components of these studies to be completeby the first quarter of 2012.
These studies include:
-- A Geological Resource Report ("GRR") on the DMZ and PVZ prepared to
Chinese formal standards has now been completed for filing with Chinese
regulators.
-- China Nerin Engineering Co., Ltd. ("Nerin"), one of China's largest
engineering companies and an internationally accredited "Level 1 Design
Institute", has been engaged throughout 2011 to completing a Chinese-
Standard Feasibility Study ("CFS"). The CFS is a necessary component to
the permitting process. Nerin brings an abundance of experience working
with international mining companies on the completion of such studies to
Chinese standards. All fieldwork necessary for the completion of this
study will be completed by the conclusion of the current field season.
-- The Company has engaged the Chinese Research Academy of Environmental
Sciences ("CRAES") in May 2011 for an Environmental and Social Impact
Report ("ESIA") to be completed by CRAES in 2012. CRAES was established
in 1978, is one of China's largest government sponsored environmental
institutes and is a Chinese Class 1 national non-profit research
institute for environmental protection.
-- Upon completion of the CFS, Nerin will assist with the completion of a
Mineral Resources Development and Utilization Program ("MRDUP") and the
associated Project Application Report ("PAR") for the project. The
production of the CFS, ESIA, MRDUP and PAR are the primary stages in the
permitting process for a mine and mill development in China.
In addition to advancing work required under Chineseregulations, the Company has engaged Micon International to prepare anew Preliminary Economic Assessment of Dachang under NI 43-101 andexpects to publish this report in 2012. The Company is also workingwith its independent financial advisors on a comprehensive financialplan for the construction and development of Dachang, and will updateinvestors with details of this plan in the coming months.
Condemnation Drilling Now Complete
As part of preparation for permitting and developmentInter-Citic has now completed condemnation drilling in and around theDachang Main Zone and associated construction areas. Condemnationdrilling (also known as Sterilization) tests areas around and belowareas of proposed construction, such as buildings, roads, power lines,pipelines, waste piles or tailings disposal areas, to ensure that novaluable minerals lie below or adjacent to these structures.Condemnation drilling is a step required by the permit grantingauthorities.
Inter-Citic drilled approximately 18 condemnation orsterilization holes in 2011 accounting for approximately 7,050 metresof drilling around or beneath the planned construction areas of theDachang Project in the vicinity of the DMZ and PVZ. Duringcondemnation drilling the Company intersected a few areas of minorgold mineralization, but not in material or significant amounts in assayreports received to date, or that would interfere with thedevelopment of the mine or the issuing of an initial mining permit.
This condemnation work in the DMZ area is now complete and thebalance of the Company's 25,000 meter exploration program has beendedicated to expanding known areas of mineralization away from the DMZand testing new areas of trench discovery. Results from explorationdrilling will be released as they become available.
Mr. Michael W. Leahey, P.Geo., and Mr. Malcolm J.A. Swallow,P.Eng,. the Company's internal Qualified Persons under therequirements of National Instrument 43-101, have both reviewed a copyof 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 anddevelopment company advancing its Dachang Gold Project in the People'sRepublic of China. Inter-Citic is listed on the TSX under the symbolICI. Inter-Citic's website is www.inter-citic.com.
Investors are encouraged to review "Risk Factors" associatedwith the Dachang project as outlined in the Company's 2010 FinancialStatements, MD&A and Annual Information Form, along with updates,available on the SEDAR website at www.sedar.com. The statements hereinthat are not historical facts are forward-looking statements. Thesestatements address future events and conditions and so involveinherent risks and uncertainties, as disclosed under the heading "RiskFactors" in the company's periodic filings with Canadian securitiesregulators. Actual results could differ from those currentlyprojected. The Company does not assume the obligation to update anyforward-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
www.inter-citic.com