Thursday, 16 February 2012

Inter-Citic Minerals featured in Lundin report, Pope & Company note

Inter-Citic Minerals (TSE:ICI) has been recently featured in Brien Lundin's Gold Report as well a research note from Canadian capital markets firm Pope & Company.
The company is a Canada-based, development-stage company, and is engaged in the acquisition, exploration and development of exploration stage mineral properties.
Earlier this week, Inter-Citic unveiled the fifth and final set of drill results from 26 holes that formed part of the 2011 exploration program at its Dachang gold project in China.
The results were all from the 861 Zone at Dachang, which now appears to be related to the same structure hosting the previously-reported XP Zone. This mineralized fault structure has now been delineated by the company through both drilling and trenching over a strike length of 2.8 kilometres, with the eastern and western extensions remaining open.
Inter-Citic said that the mineralization on this long fault structure is "characteristically similar" to that found in the Dachang Main Zone at the project, as gold mineralization occurs within a few metres of surface and continues to depth along a steeply south-dipping shear zone to at least around 125 metres - the current limit of the company's drill testing.
In the February edition of The Gold Report, Lundin comments: "Inter-citic has already identified a substantial gold deposit at Dachang. The current resources were enough to attract a buy-out offer at a premium to the market from a local mining group, which [Inter-Citic] rejected as insufficient.
"I expect this initial offer to be a sign of things to come, as Inter-citic will remain a target as it continues to build its already-significant resource total. Thus, at current levels, it’s a low-risk/high-potential gold play, and remains a buy."
Highlights of the latest results from the 861 Zone included hole CJV-1268, which intersected 6.0 metres with an average grade of 3.20 grams per tonne (g/t) gold, and hole CJV-1270, which returned 3.0 metres at an average of 3.21 g/t gold.
Moreover, hole CJV-1278 encountered an interval of 13.0 metres at an average grade of 3.61 g/t gold, while hole CJV-1280 reported 4.5 metres of 4.16 g/t gold.
In a research note published in the wake of the latest drilling results from China, Pope & Company commented: "The recent success on the 861 Zone may lead to defining a second mine similar to that planned for the Dachang Main Zone deposit."
The 861/XP fault system has been an important focus of Inter-Citic's 2011 exploration program.
The Dachang Gold project is a 279 square kilometre property in the Qinghai Province of Western China. It is a newly-discovered and extensive sediment-hosted system of at-surface gold mineralization in an under-explored district.
The currently defined NI 43-101 compliant resource at Dachang, calculated in June 2011, consists of an estimated measured and indicated inventory of 1.88 million ounces of contained gold - 17.2 million tonnes gold grading 3.41 g/t - plus a further inferred mineral resource of 1.93 million ounces contained gold  - 21.3 million tonnes grading 2.83 g/t.
A new NI 43-101 compliant preliminary economic assessment for Dachang is due in 2012.

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