China Gold International Resources Corp. Ltd.
TSX : CGG

China Gold International Resources Corp. Ltd.

September 28, 2010 09:55 ET

China Gold International Resources: Up to 315.30 Meter Higher Grade Copper Polymetallic Mineralization Zone Intersected at Jiama Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2010) - China Gold International Resources (TSX:CGG) is pleased to release the assay results from twenty-eight new diamond drill holes recently completed at the Jiama Project in China. These assay results and other completed or undergoing drilling holes confirm the skarn-type copper polymetallic zone at the Jiama Project which continues for 3,000-metres along strike and 2,000-metres along dip, while the overlying hornfels-type copper polymetallic mineralized body reaches over 1,000-metres along strike and 800-metres along dip. Both zones remain open along strike and dip.

Highlights of assay results from twenty-eight holes which the assay results have just received include:

  • Hole ZK024 intersected a cumulative 315.30-metre mineralized body that includes:
    • A 24-metre hornfels-type mineralized zone assaying 0.3% copper, 0.024% molybdenum and 2.02 g/t silver.
    • A 291-metre skarn-type mineralized zone assaying 0.97% copper, 0.053% molybdenum, 0.39 g/t gold and 16.41 g/t silver, which includes a 37-metre higher grade section from 487 to 524-metres assaying 2.44% copper, 0.74 g/t gold and 24.85 g/t silver, and 39-metre section from 542 to 581 meter with 2.31% copper, 0.81 g/t gold, 36.64 g/t silver and 0.06% molybdenum.
  • Hole ZK815 intersected a cumulative 177.48-metre mineralized body that includes:
    • A 20.64-metre hornfels-type mineralized zone assaying 0.27% copper, 0.19% molybdenum, 0.02 g/t gold and 2.0 g/t silver.
    • A 132.84-metre of skarn-type mineralization assaying 0.90 copper, 0.058% molybdenum, 0.53 g/t gold and 16.59 g/t silver, which includes 16.70-metre higher-grade section from 479.81 to 497.55-metres assaying 2.34% copper, 0.03% molybdenum, 2.34 g/t gold and 39.10 g/t silver, and a 24.1-metre section from 554.55 to 578.65-metres with 1.50% copper, 0.65 g/t gold, 26.93 g/t silver and 0.036% molybdenum.

The assay results from the 28 holes are summarized in the Table 1 below.

All of the drill holes were vertical and based on the 100 x 200-metre grid (see Fig 1-Completed and planned diamond drill holes at Jiama Project). These diamond drill holes are part of a 50,000-metre drill program planned in 2010 at Jiama Project. To date, 60 holes with 41,000 drilling meter of the proposed 88 diamond-drill holes of 50,000 meter have been completed and all except holes ZK6302 and ZK3903, which represent the west boundary of the skarn-type mineralization, have intersected mineralized zones.

Six of current drilling holes have also intersected a 20 to 400-metre thick granite porphyry-type copper polymetallic mineralized zone (see Photo 1, Molybdenite vein in granoporphyry from the core of ZK813 and ZK1614) underlying the skarn zone at Jiama Project indicating potential for significant porphyry-style mineralization. 

"These results are particularly encouraging. The intersected 291.30-metre thick high-grade skarn-type zone on the exploration grid line 0 and the deep porphyry-type mineralized zone in the six holes on the five exploration grid lines have the potential to increase the mineral resources for the Jiama Project significantly; we expect that with further exploration we will identify a copper polymetallic porphyry deposit system that, if confirmed, would have a meaningful impact on the size and scope of the Jiama Project. We will continue drilling at Jiama Property throughout 2010 with a NI 43-101 compliant resource report expected in the first quarter of 2011," says Dr. Song Xin, the Chief Executive Office of the Company.

Table 1: The assay results Summary for the 28 holes at Jiama Project
 
Drill Hole Intervals (m) Au(g/t) Ag(g/t) Cu (%) Mo (%) CuEQ
ZK022 64.2 0.28 17.83 0.85 0.026 2.03
ZK024 24 0.03 2.02 0.3 0.024 0.58
291.3 0.39 16.41 0.97 0.053 2.28
ZK017 8 0.02 1.38 0.13 0.106 0.93
3 0 0.75 0.01 0.049 0.38
24.8 0.31 17.04 0.73 0.013 1.78
31.8 0.46 14.89 0.83 0.008 1.77
ZK027 14 0.02 0.73 0.08 0.044 0.43
6 0.02 0.86 0.06 0.037 0.36
4 0 0.99 0.09 0.086 0.73
12 0 0.88 0.11 0.045 0.46
4 0 0.84 0.08 0.038 0.38
18 0.01 1.15 0.13 0.048 0.52
8 0.01 0.86 0.08 0.039 0.39
4 0.02 0.8 0.17 0.04 0.5
141.94 0.07 2 0.14 0.08 0.83
ZK714 5.8 0.07 8.31 1.05 0.011 1.58
9 0.04 5.28 0.38 0.15 1.7
4.3 0.5 38.2 1.15 0.004 3.3
ZK717 60 0.13 6.37 0.73 0.016 1.21
ZK721 4 0.02 1.34 0.31 0.001 0.4
2.85 0.02 2.57 0.36 0.004 0.55
4 0.02 3.01 0.35 0.009 0.58
4.3 0.53 1.62 0.24 0.004 0.45
17.97 0.18 4.6 0.27 0.064 0.98
4 0.38 8.59 0.44 0.036 1.22
6.76 1.14 41.6 2.09 0.018 4.62
7 0.25 11.32 0.53 0.003 1.2
6.74 0.4 23.72 1.1 0.015 2.54
ZK724 4 0.04 5.11 0.48 0.012 0.85
10.59 0.01 1.24 0.07 0.262 1.92
29.15 0.17 9.48 0.54 0.01 1.15
ZK815 8 0.05 1.05 0.27 0.023 0.49
4 0.04 1.38 0.35 0.008 0.49
4 0.02 3.58 0.38 0.005 0.63
4 0 1.22 0.15 0.036 0.46
20.64 0.02 2 0.27 0.192 1.68
132.84 0.53 16.59 0.9 0.058 2.23
ZK3109 9.6 0.03 2.4 0.19 0.065 0.77
6.5 0.64 42 1.68 0.012 4.12
ZK2315 21.33 1.66 75.74 3.11 0.029 7.63
ZK3111 4 0 0.68 0.02 0.025 0.3
7 0.1 11.84 0.59 0.009 1.32
ZK2317 12 0.08 6.36 0.44 0.004 0.83
12.44 0.21 17.04 1.07 0.006 2.06
ZK1521 17.2 0 1.58 0.17 0.158 1.33
6 0.02 6.11 0.39 0.256 2.47
4.4 0.33 20.05 0.99 0.046 2.43
8 1.22 55.82 2.7 0.005 5.93
ZK1612 6 0.02 0.86 0.34 0.014 0.49
26 0.02 1.04 0.32 0.009 0.45
8 0.02 1.19 0.29 0.008 0.42
19 0.11 8.26 0.53 0.039 1.26
28.4 0.34 25.05 1.21 0.007 2.65
43.06 0.22 15.3 0.8 0.025 1.82
3 0.06 5.23 0.28 0.035 0.81
9 0.2 15.19 0.79 0.008 1.69
ZK2319 8 0 0.63 0.04 0.1 0.75
10.02 0.4 7.16 0.23 0.01 0.76
ZK1620 28 0.17 1.33 0.45 0.009 0.62
17.4 0 1.2 0.34 0.013 0.49
13.21 0.03 0.95 0.24 0.031 0.51
8 0.72 0.82 0.24 0.018 0.54
6 0 0.91 0.24 0.066 0.74
6 0 0.83 0.18 0.027 0.42
6 0.06 5.91 0.3 0.028 0.83
6 0.04 2.68 0.29 0.006 0.48
14.5 0.06 6.45 0.39 0.025 0.92
6 0 1.35 0.61 0.021 0.83
ZK3912 8 0.2 10.11 0.37 0 0.95
ZK1525 11.5 0.22 15.51 0.76 0.003 1.65
2 0.97 21.7 0.75 0.004 2.14
ZK4704 22 0.59 48.58 2.43 0.126 5.97
6 0.12 340.1 0.32 0.012 20.2
ZK4707 4 0.02 4.26 0.25 0 0.52
ZK4710 10.03 0.41 36.94 1.52 0.011 3.69
ZK4705 6 0.02 19.99 0 0.002 1.36
ZK4902 3 0.04 7.18 0.35 0.051 1.11
6 0.07 5.4 0.27 0.016 0.68
ZK4503 6 0.01 2.22 0.05 0.078 0.72
5 0.05 2.21 0.18 0.015 0.58
22.9 0.39 13.54 0.47 0.021 1.41
ZK3909 9 0.07 1.05 0.1 0.07 0.66
3 0.51 19.61 0.86 0.003 2.03
7.6 0.15 8.49 0.41 0.016 1
ZK3905 3 0.15 8.94 0.74 0.006 1.28
3 0.02 0.64 0.01 0.1 0.73
11 0.21 12.04 0.6 0.011 1.35
ZK3907 6.51 0.72 10.29 0.23 0.002 0.93
Note: Cutoff grades are 0.3% for copper, or 0.03% for molybdenum, or 0.5 g/t for gold. The interval is a drill intercept width; the true thicknesses of the intervals are unknown yet although the mineralized body is in the tabular shape and its true width is close to the drill intercept width. EQCu is calculated based on the following formula: EQCu=Au(g/t)*0.18+Ag(g/t)*0.053+Cu(%)*1+Mo(%)*6.87+Pd(%)*0.32+Zn(%)*0.34

To view Figure 1 and Photo 1 associated with this news release, please click here: http://media3.marketwire.com/docs/cg0928m.pdf.

SAMPLING, ASSAYING, QUALITY CONTROL AND QUALIFIED PERSON

Sample preparation and analysis for the Jiama core samples were undertaken by the Southwestern Metallurgic Geology Analytical Center ("Southwest Center") in Pengzhou, Sichuan Province, which is an accredited laboratory by the Chinese National Accreditation Board for Laboratories ("CNAL"), and Ministry of Land and Mineral Resources of China ("MOLR"). The Southwest Center set up a sample preparation facility in the Jiama core storage warehouse. Sample preparation was undertaken by the Southwest Center personnel. Drill core samples were cut in halves using a diamond saw first.

One-half of the drillcore was sampled and assayed using the standard analytic methods specified in "The Quality Administration Standards for Analysis in Geological and Mineral Resource Laboratories" (DZ0130-94) promulgated by the former Ministry of Geology and Mineral Resources of China. Gold grades were determined by an aqua regia + fluoride digestion, reactivated carbon concentrating, and atomic absorption spectroscopy ("AAS") procedure. Copper, lead, zinc, molybdenum, and silver grades were determined using an aqua regia + hydrofluoric acid + perchloric acid digestion and Inductively Coupled Plasma Atomic Emission Spectrometry ("ICP-AES") or AAS procedure. All samples were analyzed for the above six metals. All the assays were completed at the Southwest Metallurgical Geology and Test Center lab in Pengzhou City, Sichuan Province, China. To maintain independent quality control on the laboratory, 2% of duplicate, blank and standard samples respectively are included in the all assay samples. The laboratory also uses an extensive range of internal standards. External check assays are routinely performed on check samples submitted independently by the Company to National Geological Sample Test Center in Beijing, China, which holds the Class A Geological and Mineral Sample Assay Qualification granted By MOLR. Further information on the Jiama project and technical information surrounding the Jiama project can be found on the website www.sedar.com.

Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101. The exploration program on the Jiama project is managed by Dr. Tang Juxin, a senior researcher from Geology Academy of China. It is supervised by Dr. Yingting (Tony) Guo, an exploration Manager of China International Gold Resources and a Qualified Person as defined under National Instrument 43-101. Dr. Guo has visited the Jiama Project during May 23rd to 25th and June 3rd to 4th of 2010. Dr. Guo supervised the scientific and technical information contained in this news release.

China Gold International Resources' Purchase agreement for Jiama Project

On August 30th of 2010, China Gold International Resources signed a definitive purchase agreement with China National Gold Group Hong Kong Limited, a wholly owned subsidiary of China National Gold Group Corporation ("China National Gold"), the Company's largest shareholder, and Rapid Result Investments Limited, pursuant to which China Gold Resources will purchase 100% of Skyland Mining Limited. The chief asset of Skyland is its 100% interest in the Jiama Project. For further details, please refer to the news release of China Gold International Resources dated August 30th of 2010 on www.chinagoldintl.com.

About China Gold International Resources Corp. Ltd.:

China Gold International Resources is a TSX listed mining company trading under the symbol CGG. The company has a mandate to actively advance its portfolio of gold properties and other non-ferrous metals on a global scale. The company began producing gold at its primary operation, the Chang Shan Hao Gold Project in July of 2007. China National Gold, a Chinese state- owned enterprise and the largest gold producer in China owns 39.3% of China Gold International Resources Corp. Ltd.'s outstanding shares.

Forward-Looking Statements: Statements in this release that are forward-looking statements including the potential to identify a porphyry zone at the Jiama Project and the results of future exploration on the Jiama Project, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's MD&A, financial statements and other periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. China Gold International Resources Corp. Ltd. does not assume the obligation to update any forward-looking statement, except in accordance with applicable securities laws.

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