GobiMin Inc.

GobiMin Inc.

May 23, 2006 08:30 ET

GobiMin Initiates Diamond Drilling Program at its Huangshan Nickel-Copper Project in Northwestern China

TORONTO, ONTARIO--(CCNMatthews - May 23, 2006) - GobiMin Inc. (GobiMin or the "Company") (TSX VENTURE:GMN) is pleased to announce that it has initiated a drilling program of minimum 15,000 m at its Huangshan nickel-copper deposit located within 10 km of its mining operations, 140 km east of Hami in northwestern China. The Company has a 97% interest in the project.

The current drilling program has three objectives: (1) validate the historical drilling data, (2) reduce the drill hole spacing to 50 meters in the higher grade portion of the deposit, and (3) test depth extensions of the nickel-copper mineralization. The data collected will support a mineral resource estimation in compliance with National Instrument ("NI") 43-101.

Between 1981 and 1990, the Chinese Geological Survey Team No. 6 of the Xinjiang Bureau of Geology and Mineral Resources drilled 62 core holes totaling 42,207 m, along north-south sections spaced at 50 m to 100 m. In 1992, they reported a mineral inventory for the project of 68.4 million tonnes grading 0.48% nickel and 0.31% copper under the C and D categories of the China Ministry of Geological and Mineral Resources classification system. This mineral inventory may not comply with resource and reserves guidelines of NI 43-101 and therefore should not be relied upon. Approximately 75% of the historical mineral inventory is found in mineralized lens No. 30 and 12% in lens No. 31. Mineralization is hosted in a hazburgite unit at the base of and on the southern flank of the stratified ultramafic complex. Numerous other sulphide zones have been intersected by previous drilling, some of which intersected with only one drill hole and remaining open in all directions.

Upon completion of the 15,000 meter drilling program, the Company will proceed with an independent resource calculation and possibly extend the drilling program to test the depth extension of the deposit and other exploration targets.

The drilling program was planned by SRK Consulting (Canada) Inc., a well-respected international engineering firm independent of the Company, and will be supervised on site by Mr. John Guo, Senior Geologist of GobiMin, designated Qualified Person, employing a QA/QC program consistent with NI 43-101 and industry best practices. The technical information in this release has been verified by Mr. Guo.

GobiMin Inc. is a junior mining company with nickel sulphide operations and development properties in northwestern China. The Company controls three concessions, within a 10 kilometer radius, totaling 455 hectares. In operation since late 1999, GobiMin currently mines nickel and copper ore from two underground mines (Huangshan Dong and Xiangshan). The Company has started a drilling program at its promising Huangshan nickel-copper deposit to bring the historical resource in compliance with the Canadian Securities Administrators NI 43-101 guidelines. In 2005, 1,048 tonnes (2.3 million pounds) of nickel and 630 tonnes (1.4 million pounds) of copper were sold to the Jinchuan Group Ltd., China's largest producer, who has a 13.5% equity interest in GobiMin.

Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, risks associated with fluctuations in metal prices, risks associated with mining operations including environmental hazards, GobiMin's reliance on key suppliers and on key personnel, the potential for changes in the legislative and regulatory environment in China and other risks and uncertainties detailed from time to time in GobiMin's annual report and other filings with the Canadian securities commissions. The reader should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the GobiMin's annual report and other documents filed from time to time with the Canadian securities commissions, all of which are available at www.sedar.com.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • GobiMin Inc.
    James Xiang
    Chief Financial Officer
    (416) 915-0133
    GobiMin Inc.
    Laurie Gaborit
    Investor Relations
    (416) 350-3779 ext 222