Continental Minerals and Great China Mining are currently working on the engineering and mineral resource estimates for the feasibility study for the Xietongmen copper-gold project. The project is located 240km from the city of Lhasa in Tibet.

Continental, which is the operator of the project, owns 60% of the parent holding company that owns 100% of the Xietongmen project. A transaction to merge the two companies and unify 100% ownership of the project in Continental is progressing and is expected to be completed by the end of 2006.

Continental commissioned international consulting groups and Chinese design institutes to collect the necessary data for the feasibility study prescribed under legislation for China, as well as data collection and studies for an international feasibility study, which would be required for financing. The work has progressed concurrently.

A systematic program of metallurgical sampling was initiated in February this year. Melis Engineering of Saskatoon, Saskatchewan is supervising the detailed metallurgical test work, which is being carried out at SGS Lakefield Laboratory in Lakefield, Ontario in conjunction with consultants from Aker Kvaerner in Toronto, Ontario and the Nanchang Engineering and Research Institute for Nonferrous Metals (NERIN), the Chinese Design Institute, which is responsible for the process design.

Lock cycle tests show that the Xietongmen mineralization can be treated using a simple flotation flowsheet involving a 125 micron primary grind, rougher flotation at pH 10 using standard flotation reagents and a regrind of the rougher concentrate to 25 microns prior to cleaner flotation, without the need for sodium cyanide.

An excellent copper recovery of more than 90% resulted, producing a 25% copper concentrate containing 30 grams/ tonne gold and 260 to 300 grams/tonne silver. The main metallurgical and grinding tests are now completed and reports being compiled.

Golder Associates' Beijing Office is in charge of the detailed designs for tailing and waste rock disposal and the geotechnical investigations for the open pit.

Geotechnical drilling has been completed in the pit, and at the potential plant site, waste rock and tailings storage areas. Rock characterization testing was completed in September, and reports are being compiled.

Breton Banville and Associates of Montreal, Quebec is currently engaged to develop the pit design and layout and production schedule for the detailed engineering and planning to be completed for the feasibility study before the end of this year.

Panalpina Projects of Toronto, Ontario and Beijing, China have been working on the logistical plans for movement of the mineral concentrate and construction material and equipment transportation to the project.

Environmental and socio-economic baseline data collection is being carried out by Sinosphere consultants, based in Beijing, in conjunction with Golder. The community engagement program has expanded along with the other project activities in 2006. www.continentalminerals.com

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