InterCitic Minerals has updated its mineral resource estimate for its Dachang gold project located in Qinghai, China.

The project now has a total Inferred mineral resource of 16.1 million tonnes with an average grade of 3.88 grams/tonne gold (some 2,008,000 ounces contained). The Dachang Main Zone (DMZ) inferred mineral resource estimate has increased to 14.8 million tonnes grading 3.71 grams/tonne gold (about 1.8 million ounces contained).

In addition the inferred mineral resource on the North River anomaly NR2 is 1.3 million tonnes grading 5.81 grams/tonne gold (approximately 239,000 ounces contained).

In anticipation of possible openpit extraction, the mineral resource estimate has been limited to a depth of approximately 150 metres below surface, and minimum widths of 2.5 metres and a 5 gram cut-off have been employed.

The DMZ remains open to the east and to depth. Also, less than 10% of the identified gold bearing soil anomalies at Dachang have been drill tested to date.

The company intends to resume exploration early next month with an expanded diamond drilling programme.

In general, an extensive followup program is being planned to test the DMZ and three new targets - Little Ruby, DMZ Offset and Placer Valley. The DMZ mineralization remains open at depth and to the east.

Further testing of this zone will continue to focus on shallow potentially bulk mineable mineralization. In addition, the company intends to initiate work on a preliminary assessment (scoping study). www.intercitic.com

News sourced from International Mining Project News - www.im-mining.com