Inter-Citic Minerals Inc.
TSX : ICI

Inter-Citic Minerals Inc.

June 19, 2012 08:30 ET

Inter-Citic Reports Updated NI 43-101 Compliant Mineral Resource Estimate For Its Dachang Gold Project

Measured and Indicated Resource Estimate Increases by 320,000 Ounces; Inferred Resource Estimate Increases by 250,000 Ounces Gold

TORONTO, ONTARIO--(Marketwire - June 19, 2012) -

Editors Note: There is a photo associated with this press release.

Inter-Citic Minerals Inc. (TSX:ICI) ("Inter-Citic" or "the Company") President and CEO James Moore, is pleased to announce an update to the Company's NI 43-101 compliant mineral resource estimate for its Dachang Gold Project in China.

With this newest mineral resource estimate the Company's measured and indicated mineral resources at Dachang increased by an additional 320,000 ounces of gold, and the Company's inferred mineral resources increased by an additional 250,000 ounces.

The current NI 43-101 compliant mineral resource estimate at Dachang now stands at:

  • Estimated Measured and Indicated mineral resources of 2.20 million ounces contained gold (22.52 million tonnes grading 3.04 g/t Au); plus,
  • Estimated Inferred mineral resources of an additional 2.18 million ounces contained gold (25.91 million tonnes grading 2.62 g/t Au).

Of the estimated Measured and Indicated mineral resources, 320,000 ounces (5.32 million tonnes grading 1.80 g/t Au) are outside the Dachang Main Zone ("DMZ") on the 861/XP fault structure.

This inventory of mineral resources for the Dachang Gold Project has been updated by the Company with the results from the 2011 exploration program with a total of 25,003 meters of drilling in 317 diamond drill holes and approximately 21,000 metres of surface trenching. Since 2004 Inter-Citic has drilled 1,362 diamond drill holes totaling 174,000 m and has excavated and sampled 1,108 trenches totaling more than 109,000 linear metres.

A breakdown of the Company's current total Mineral Resource Estimate is set out in the table below:

Dachang Estimated Mineral Resources at June 1, 2012
Location Resource
Category
Tonnes
(Mt)
Grade
(g/t Au)
Contained
Gold
(million
oz)
DMZ and Placer Valley Measured 5.00 3.55 0.57
Indicated 12.20 3.34 1.31
Exploration Areas Indicated 5.32 1.80 0.32
Total Measured and Indicated 22.52 3.04 2.20
DMZ and Placer Valley Inferred 9.7 2.97 0.93
NR-2 Anomaly Inferred 1.30 5.81 0.24
Exploration Areas Inferred 14.91 2.11 1.01
Total Inferred 25.91 2.62 2.18
(Cut-off grade for the above table is 0.5 g/t Au. Totals may not add due to rounding.)
Dachang Estimated Mineral Resources at June 1, 2012
By Area
Measured + Indicated Inferred
Mass
(Mt)
Grade
(g/t)
Au
(MM oz)
Mass
(Mt)
Grade
(g/t)
Au
(MM oz)
Location
DMZ & PVZ 17.20 3.41 1.88 9.70 2.97 0.93
Acadia 2.47 1.49 0.12 2.50 1.36 0.11
861/XP 2.13 2.17 0.15 1.13 1.77 0.06
NR-1 1.44 2.10 0.10
NR-2 1.30 5.81 0.24
DMZ-X 2.54 2.02 0.17
DMZ-N 0.30 2.81 0.03
Ruby Zone 0.31 2.85 0.03
PVZ-E 1.44 3.06 0.14
South Ruby 0.23 2.27 0.02
Deep Holes 1.81 3.41 0.20
South East-N 0.73 2.29 0.05 1.79 1.76 0.10
South East-S 1.44 1.35 0.06
Combined Total 22.52 3.04 2.20 25.93 2.62 2.18

These estimates of mineral resources are not affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

MINERAL RESOURCES ESTIMATE TECHNICAL DETAILS:

Modelling for exploration areas 861/XP, Acadia, South East North ("SEN"), and South East South ("SES") was performed using Gemcom Surpac® 6.3 modeling software. Gold grades were estimated by inverse distance squared (ID2) interpolation from 1.0 meter down hole assay composites. Block size was 2 meters (x) by 2 meters (y) by 2 meters (z) with no sub-blocking implemented for the 861/XP and Acadia zones and two units of standard sub-blocking implemented for the SEN and SES zones.

Inter-Citic staff developed sectional interpretations of gold zones corresponding to a cut-off grade of 0.50g/t over 2.0 meters that were subsequently digitized and wire-framed into three-dimensional solid models. Solid model limits were projected half the distance to a constraining drill hole or 50 meters from the last intercept and were constrained at surface by topographic digital terrain models.

Grade interpolation was peripherally constrained within the wire-framed gold shells using multiple search ellipse passes. Experimental variogram results from the 861/XP zone, striking 280 degrees and dipping 60 degrees to the south, demonstrated a primary axis range of 95 meters along strike, a secondary axis range of 60 meters down dip, and a minor axis range of 5 meters. These results were applied to the Acadia, SEN and SES zones as experimental variogram results could not be resolved for those zones. Interpolation ellipsoid ranges and orientation were locally varied to accommodate domain geometries and sample distribution.

A minimum of 3 and maximum of 12 contributing composites, with no more than 4 from a single drill hole, were used for interpolation. Contributing gold values were capped at 14 g/t based on cumulative frequency and probability plot results. Indicated Mineral Resources are defined as having 5 or more contributing composites, a maximum distance of 50 meters from the block center, an average distance of 67.5 meters of all contributing composites, and occur in mineralized areas with sufficient demonstrated geological continuity. All other resources interpolated in the 861/XP, Acadia, SEN, and SES are defined as Inferred Mineral Resources.

No new drilling was done in 2011 on the Dachang Main Zone ("DMZ") or Placer Valley Zone ("PVZ"), and the resource estimate for those areas remains unchanged as described in the Company's press release of June 30, 2011 and the filed Technical Report dated June 28, 2011 prepared under NI 43-101 by Micon International Co Limited. The resource estimate for the NR-2 Anomaly was not further tested in 2011, and remains unchanged as described in the Company's press release of December 12, 2005.

Maps and associated materials are available on the Company's website: www.inter-citic.com.

The updated mineral resource estimate for new and other exploration areas was prepared for the Company by Mr. Michael W. Leahey, P.Geo., the Company's internal Qualified Person under the requirements of National Instrument 43-101. The estimate complies with the CIM mineral resource definitions referenced in National Instrument 43-101. Mr. B. Terrence Hennessey, P.Geo., a Qualified Person under the requirements of National Instrument 43-101, has also reviewed a copy of this press release.

On Behalf of the Board:

James J. Moore, President & CEO

ABOUT INTER-CITIC:

Toronto-based Inter-Citic Minerals Inc. is an exploration and development company advancing its Dachang Gold Project in the People's Republic of China. Inter-Citic is listed on the TSX under the symbol ICI. Inter-Citic's website is www.inter-citic.com.

Investors are encouraged to review "Risk Factors" associated with the Dachang project as outlined in the Company's 2011 Financial Statements, MD&A and Annual Information Form, along with updates, available on the SEDAR website at www.sedar.com. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

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