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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.
Inter-Citic's 2008 drill program of up to 50,000 metres of drill is well underway. Results have been released for the first two sets of drill holes. (June 26, 2008 with MAP (PDF - 1.4 MB) and July 18, 2008). Inter-Citic encountered visible gold in hole CJV-414. At present, up to six drills are operating at Dachang, 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 additonal drilling in new areas focussed on resource expansion.
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 new trenches in 2007's exploration season. With all holes now reported, 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.Inter-Citic
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. Highlights include:
- Drill
hole CJV-248 intersected 15.0 metres of continuous mineralization
averaging 4.35 grams per tonne contained gold.
- Drill
hole CJV-250 intersected 6.5 metres of continuous mineralization
averaging 8.12 grams per tonne contained gold.
- Drill
hole CJV-252 intersected 15.0 metres of continuous mineralization
averaging 4.55 grams per tonne contained gold.
- Drill
hole CJV-256 intersected 7.0 metres of continuous mineralization
averaging 8.48 grams per tonne contained gold.
- Drill
hole CJV-274, intersected 10.0 metres of continuous mineralization
averaging 4.22 grams per tonne contained gold.
- Drill
hole CJV-280, intersected 21.0 metres of continuous mineralization
averaging 4.98 grams per tonne contained gold.

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. Highlights include:
- Drill
hole CJV-299 is the deepest hole drilled to date on the
Dachang East area of the property, drilled beneath the current
resource area of the Dachang Main Zone. It intersected 23.0
metres of continuous mineralization averaging 5.03 grams
per tonne contained gold at a down hole intercept from 236
to 259 metres and at a vertical depth of 215 metres.
- Drill
hole CJV-302 is in a new area of gold discovery approximately
1000 metres from the eastern limit and along strike of the
Company's 43-101 compliant resource block at the Dachang
Main Zone. CJV-302 intersected two separate zones of mineralization
including 6.0 metres averaging 11.69 grams per tonne contained
gold and a further interval of 16.0 metres of continuous
mineralization averaging 3.91 grams per tonne gold.
- Drill
hole CJV-281 intersected multiple mineralized zones, including
8.0 metres of continuous mineralization averaging 4.83 GPT
gold and another zone of 4.0 metres of continuous mineralization
averaging 5.01 GPT contained gold.
- Drill
hole CJV-282 intersected multiple mineralized zones, including
9.0 metres of continuous mineralization averaging 4.13 GPT
contained gold.
- Drill
hole CJV-288 intersected multiple mineralized zones, including
20.0 metres of continuous mineralization averaging 4.29
GPT contained gold.
- Drill
hole CJV-289 intersected multiple mineralized zones, including
7.0 metres of continuous mineralization averaging 5.39 GPT
contained gold.
- Drill
hole CJV-292 intersected multiple mineralized zones, including
4.0 metres of continuous mineralization averaging 6.33 GPT
gold and another zone of 5.0 metres of continuous mineralization
averaging 7.27 GPT contained gold.
- Drill
hole CJV-299 intersected multiple mineralized zones, including
23.0 metres of continuous mineralization averaging 5.03
GPT contained gold.
While
more testing is required, the Company believes that the mineralization
reported in hole CJV-302 represents an eastern extension of
the mineralized fault that hosts the Dachang Main Zone well
beyond the extent of the rest of 2007's drilling.
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. Drilling highlights include:
- Drill hole CJV-316 intersected multiple mineralized zones, including 12.0 metres of mineralization averaging 7.39 GPT contained gold, another zone of 20.0 metres of mineralization averaging 2.58 GPT contained gold, and another zone of 5.0 metres of mineralization averaging 3.96 GPT contained gold
- Drill hole CJV-321 intersected multiple mineralized zones, including 7.0 metres of mineralization averaging 3.64 GPT contained gold.
- Drill hole CJV-328 intersected multiple mineralized zones, including 6.0 metres of mineralization averaging 5.82 GPT contained gold.
- Drill hole CJV-332 intersected multiple mineralized zones, including 3.0 metres of mineralization averaging 6.92 GPT contained gold and another zone of 4.0 metres of mineralization averaging 3.79 GPT contained gold.
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 these areas in 2007 returned results including:
- T-1502 with 12.5 m at 4.59 gpt for 57.4 gram/metres (PVZ)
- T-33501 with 18.0 m at 4.5 gpt for 81.0 gram/metres (PVZ)
- T-3507 with 13.5 m at 5.46 gpt for 73.7 gram/metres (PVZ)
- T-4302 with 9.0 m at 9.4 gpt for 84.4 gram/metres (PVZ)
- T-4801 with 11.0 m at 7.6 gpt for 83.7 gram/metres (PVZ)
- T-22501 with 15.0 m at 4.8 gpt for 71.7 gram/metres (OTH)
- T-1304 with 15.0 m at 6.7 gpt for 100.2 gram/metres (OTH)
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.
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