Inter-Citic's Dachang Gold Project is a 279 km2 property in the Qinghai Province of Western China. Inter-Citic announced in 2006 that the business license for the Dachang Gold Project has been extended for an extraordinary 27 years to December 26, 2033.

The Dachang gold project now has a total inferred mineral resource of approximately 2.9 million oz Au contained (approximately 25 million tonnes with an average grade of 3.63 gpt Au) as reported in the Company's the press release of April 10, 2008. The independent technical report filed under NI 43-101 on May 26, 2008 can be read here: 2008 Technical Report - Dachang Gold Project (PDF 7.4 M). The inferred resource on the Dachang Main Zone (DMZ) increased to approximately 2.66 million oz contained gold from 1.76 million oz. In addition, as described in the Company’s press release in December of 2005, there is an inferred mineral resource on the North River anomaly NR-2 of 1.3 million tonnes grading 5.81 gpt Au (approximately 239,000 oz Au contained).

The system of gold mineralization at Dachang is very large and the area has been the site of extensive gold placer working in streams over the past two centuries. The mineralized sediments which host the placer streams are just now being tested using modern exploration methods. Almost 30,000 soil samples were taken in 2004 and 2005 over the entire property. To date Inter-Citic has identified through soil geochemistry more than 50 major new gold anomalies on the property in addition to the original inferred resource, along with dozens of smaller ones. Click here for detailed descriptions of the anomalies along with detail area maps.

On March 2, 2009, Inter-Citic reported on first stage metallurgy at Dachang. Results to date demonstrate that high recoveries of gold (96%) can be achieved using conventional flotation methods. The concentrate produced contains 30 g/t gold and is considered to be marketable. Further test work has shown that the rougher concentrate can be upgraded to 57.7 g/t gold through regrind and cleaning stages. This results in an overall recovery of 94% of the gold into a final cleaner concentrate with a mass of only 6.2% w/w.

On May 7, 2009, Inter-Citic reported results from bio-leaching/CIL test work conducted on a bulk flotation concentrate sample from the Dachang gold project. The results showed that high gold leach recoveries of 89% can be achieved by bio-leaching and conventional CIL. Fast leach kinetics were observed with 88.6% of the gold leached into solution after 4 hours. The leach kinetics curves also showed no signs of “preg robbing” occurring. “Preg-robbing” is where the presence of “preg-robbing carbon”, defined as carbonaceous material that preferentially absorbs gold from solution thereby reducing gold leach recoveries. Overall gold recoveries to doré are predicted to be 85%, assuming 96% for the flotation stage, 89% for the BIOX/CIL stage, and 99% for solution/goldroom losses.The Company is continuing with test work to identify an optimal final process route using a broad range of available processes.

Inter-Citic completed a 50,000 metre drill program in 2008. A total of 300 of the 325 exploration drill holes reported gold mineralization. Results have now been released for the complete sets of drill holes drilled in 2008 - June 26, 2008 with MAP (PDF - 1.4 MB) , July 18, 2008, August 7, 2008, September 29, 2008, November 3, 2008, December 3, 2008, January 6, 2009, January 21, 2009, February 4, 2009. and February 17, 2009. A map of all 2008 drill holes can be seen here (PDF- 3.1 MB). A full list of reported results for 2008 can be seen on our Maps & Data page. Up to seven drills operated at Dachang in 2008, working on both infill drilling to further define the existing 43-101 inferred mineral resource estimate on the DMZ in preparation for a scoping study, as well as additional drilling in new areas focussed on resource expansion. IP geophysical exploration has further extended the DMZ and discovered new areas of mineralization. An update to the Company's Ni 43-101 compliant mineral resource inventory is now underway in conjunction with work on a Preliminary Economic Assessment.

A 28,000 metre drill program was completed in 2007. Click here to see a map of all drill hole locations for 2007, and click here to see all trenches from 2007's exploration season. In 2007, 180 of 187 drill holes reported near-surface gold mineralization in the area of the Dachang Main Zone. As a result, the Company reported an update of its mineral resource on April 10, 2008. A map of the 2008 exploration plan can be seen here (PDF - 2.5 MB).

District Geology Map Showing Gold Soil Anomalies
and NI 43-101 Inferred Mineral Resource Estimate Locations

In 2007 the company completed 196 drill holes for a total of 27,926 metres of drilling at Dachang. Of these, 24,312 metres of drill testing was on the Dachang Main Zone (DMZ) and it’s eastern extensions. A total of 164 drill holes were completed on the DMZ in 2007, representing both infill drilling to confirm 2006 drill intercept continuity and drilling in new areas that resulted in the extension of the DMZ by approximately one kilometre to the east of the current resource area. Gold mineralization was intersected in 152 or 93% of these holes on the DMZ. In addition to drilling on the DMZ, 3,614 meters in 32 holes of HQ drilling was completed on the Placer Valley and Ruby Zones during the 2007 exploration program.

The 2007 exploration season began with the drilling of new targets [map] the first week of May, 2007. Among the first results reported on June 12, 2007, is hole CJV-160, which intersected 58 metres of continuous mineralization with an average grade of 5.3 gpt gold. On August 13, 2007 Inter-Citic reported its second set of drill results. All 17 holes reported gold mineralization in newly discovered shallow dipping zones. Drill results include 16 metres grading 4.28 GPT gold, 10 metres grading 5.75 GPT, 9m grading 4.53 GPT and 12 metres grading 3.34 GPT. On September 17, 2007, a further 33 holes were reported, including hole CJV-207A with 47 metres of continuous mineralization averaging approximately 6.64 grams per tonne contained gold. A map of the new exploration area can be seen here. On October 15 , 2007, a further 34 holes were reported, 33 of which contained gold mineralization. Best results include hole CJV-218 with 28 metres of continuous mineralization averaging approximately 6.77 grams per tonne contained gold. A series of trenches were also reported. Trench number TC-1401 returned 28 metres of continuous mineralization with an average gold grade of 9.11 grams per tonne gold. Trench TC-1401 is located on-strike and 1,200 metres from the eastern extent of the Dachang Main Zone's current resource area, and 500 metres east of the most easterly diamond drill section on the Dachang Main Zone extension. As of this release, approximately 15,000 m of drilling has been reported - about half of the 2007 program. On November 26, 2007 Inter-Citic reported on 35 new diamond drill holes at Dachang. All 35 drill holes reported mineralized gold zones, with aggregate widths up to 45 metres within potential open pit depths.

On January 8, 2008, Inter-Citic reported on 25 new diamond drill holes at Dachang of which 24 returned mineralized gold zones, with aggregate widths up to 34 metres within potential open pit depths.

Drill hole CJV-302 was drilled 100 m east of and 150 m south of trench number TC-1401 reported in the Company's press release of October 15, 2007. Trench TC-1401 reported 28 metres of continuous mineralization with an average gold grade of 9.11 grams per tonne gold. Trench TC-1401 is located on-strike and approximately 1000 metres east of the Dachang Main Zone's defined resource area.

On March 3, 2008, Inter-Citic reported on the final 27 diamond drill holes of 2007 at Dachang of which 25 returned mineralized gold zones, with aggregate widths up to 44 metres within potential open pit depths. A map of 2007's drill hole locations can be seen here.

Most of the reported trenching in 2007 that is outside the DMZ Extension represents new areas of discovery, including the South East Anomaly (SEA) with 35 trenches, the mostly unexplored Placer Valley Zone (PVZ) with 67 trenches, and additional others areas surrounding the DMZ (OTH). A map of trenching in 2007 can be seen here.

Trenching in 2007 again defined many new areas of gold mineralization both along strike with the Dachang Main Zone and on new fault zones within 8 kilometres of the DMZ. Trenching continues to be one of the most successful and cost-effective methods of gold exploration at Dachang due to the thin soil cover and near-surface mineralization observed throughout the property. A consistent spatial relationship has been observed between the gold in soil anomalies, trench values and underlying strongly altered and mineralized fault zones, and was what originally led to the discovery of the DMZ resource area. Favourable trench results provide targets of priority for the Company’s 2008 drilling program.

Inter-Citic completed its third season of exploration at Dachang and first major drill program in 2006. This extensive drilling program of over 15,000 m focussed on resource definition and expansion at Dachang East Area Main Zone (DMZ). Several new targets [see map] in Dachang East were identified for priority exploration in 2007. In 2006, 96 of 101 drill holes on the Dachang Main Zone contained near-surface gold mineralization.