CHINA - Strong gold results from Dachang

Inter-Citic Minerals says its third set of drill results from the 2011 exploration program reveal multiple strong intersections including one interval of 9.7 metres @ 10.92 grams/tonne gold. Other highlights include 11 metres @ 3.33 grams/tonne gold, 6 metres @ 3.34 grams/tonne gold and 12.1 metres @ 2.7 grams/tonne gold.

The Canadian gold exploration company’s president James J Moore says these results continue to encourage Inter-Citic that Dachang is poised to be one of China’s largest open pit gold mines.

The 25,000 metre program was completed in December 2011 with drilling on new targets aimed at resource expansion as well as engineering and condemnation drilling at the Dachang main zone. Strong new mineralized structures were intersected at the Placer Valley zone, off the immediate southern edge of the main zone. The 9.7 metre intersection @ 10.92 grams/tonne was from this zone.

The southeast area was drilled for the first time during the 2011 program, with 13 holes returning multiple gold intersections. Two separate areas of mineralization were discovered at the Acadia zone, about 10km northwest of the main zone. This anomaly now has a strike length of 950 metres. While a focus of the program was the 861/XP fault system which hosts mineralization similar to that in the main zone, Inter-Citic now believes there is a single continuous fault structure of 2.8k strike length within the XP prospect.

Dachang is centrally located in Qinghai province in western China. It covers 279sqkm of newly-discovered, at-surface gold mineralization in an under-explored district. Inter-Citic has been actively exploring the site for seven years and has reported a measured and indicated resource of 1.88 million ounces of contained gold. The company commenced the drill and 10,000 metre trenching plan in August 2011.

Trenching continues to be one of the most successful and cost-effective methods of gold exploration at Dachang due to the thin soil cover and near-surface mineralization observed throughout the property.

www.inter-citic.com