Map of China

Dachang Gold Project

2004-2007 Results

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

Inter-Citic's Dachang Gold Project in Qinghai is a newly discovered sediment-hosted gold deposit contained within a very large and under-explored district. It is located on the Southern Qinghai Plateau in western China, 170 kilometres southeast of the city of Golmud, Qinghai, a major infrastructure centre. Maps, sections and drill results are available here.

Inter-Citic completed its third season of exploration at Dachang in 2007, marked by an extensive drilling program of 28,000 m. focussed on resource definition and expansion at the Dachang Main Zone in the southeastern area of the property. The 2008 exploration program was primarily focussed on infill drilling of the DMZ and engineering work.

Soil geochemistry has been a valuable exploration tool at Dachang because of the near-surface nature of the mineralization. In 2005 and 2006 surface trenching of the 20 ppb threshold that define anomalies in this district led to the discovery of shallow bedrock concentrations of gold bearing sulfides hosted in fault structures, with mineralization very similar to the Dachang Main Zone resource. At the Dachang Main Zone, which hosts the NI 43-101 compliant inferred mineral resource described below, the mineralization occurs beginning at surface, and has so far only been defined to an approximate depth of 150 metresmaking it an ideal candidate for a low-cost, open-pittable resource, while it still remains open to depth and along strike.

Almost 30,000 soil samples were taken in 2004 and 2005 over the entire property.The Company identified through soil geochemistry 24 major new gold anomalies in addition to the original inferred resource, along with dozens of smaller ones. More detailed descriptions of the anomalies along with area maps are available through the links below.

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 few centuries. The mineralized sediments which host the placer streams are just now being tested using modern exploration methods. The primary area of known mineralization, known as the Dachang Main Zone, is shown below in the southeastern corner of the property. An additional inferred estimated resource of 239,000 oz. of contained gold (1.28 million tonnes grading 5.8 gpt Au) was reported by Inter-Citic in December of 2005 as a result of drilling the NR2 anomaly.

District Geology Map Showing Gold Soil Anomalies and Inferred Resource Locations

Distric Geology Map

Individual close-up maps for each district can be seen by clicking on the links below:

2007 Drilling Program Results Summary:

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. In 2007, 180 of 187 drill holes in the area of the Dachang Main Zone reported near-surface gold mineralization.

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. 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 upcoming 2008 drilling program.

2006 Drilling Program Results Summary:

Inter-Citic announced at the beginning of the 2006 exploration season that it was the Company's intention to explore numerous drill targets previously identified in the Main Zone at Dachang East. Inter-Citic's stated primary objective of its 2006 drill program was resource expansion in this area of the property, with the goal of defining a significant open-pit resource.

On January 16, 2007, the final total of 101 drill holes on Dachang Main Zone from 2006 was reported. A total of 96 drill holes on Dachang Main Zone (DMZ) reported gold mineralization. Initial 40 meter spaced trenches defined a well mineralized fault zone along a continuous 2.5 kilometre strike length. This gold bearing sulphide deposit was then systematically drill tested by 3 to 5 hole NQ and HQ diamond drill hole fences at 120 meter spaced sections along its entire 2.5km strike length. In addition the Company drilled several closer spaced sections (40m) to further establish mineralization continuity. This work defined a 60 to 70 degree south dipping series of sulphide replacement zones with aggregate widths of between 7 to 23 meters across the known strike length of the DMZ which still remains open to depth and along strike. Given the continuous nature of the surface mineralization along a 2.5 km strike length, the company elected to test only the potentially open-pittable portion of the DMZ, so holes drilled to date have not yet tested the structure below a vertical depth of 200 meters.

In addition to testing the Dachang Main Zone (DMZ), the company continued to trench adjacent areas with similar soil geochemical signatures. New sulphide-bearing fault zones were uncovered in three nearby prospects and assays are pending from this program. The company also expanded its regional soil geochemical survey to the southeast along strike from the DMZ prospect.

On June 21, 2006 Inter-Citic announced in a press release that it had received positive results from its first 7 drill holes of 2006 at Dachang. Results included a shallow drill hole containing 29 Metres of 2.3 grams per tonne gold. Also reported were gold values from trenching and exploration shaft samples. This is part of the first phase of a very large 20,000 metre drill and 50,000 metre trenching program in 2006. In-fill drilling commenced in July using two drills to complete a shallow drill hole program aimed at defining an open-pit resource.

On July 31, 2006, Inter-Citic released the second set of drill holes results from Dachang East. All 8 drill holes reported contained gold mineralization. Results included:

  • Drill Hole CJV-50 which reported 31 Meters of 2.69 Grams Per Tonne Gold
  • Drill Hole CJV-51 which reported 6 Metres of 6.5 Grams Per Tonne Gold

Additional drill hole assay results in chart form can be seen here.

On September 6, 2006, Inter-Citic released the third set of drill holes results from Dachang East. All 10 drill holes reported contained gold mineralization. Results included:

  • Drill Hole CJV-65 reported 23.6 Metres of 7.9 Grams Per Tonne Gold
  • Drill Hole CJV-69 reported 22 Meters of 5.71 Grams Per Tonne Gold

Additional drill hole assay results in chart form can be seen here.

On October 23, 2006, Inter-Citic released results from 21 new drill holes at Dachang East Main Zone. Results included:

  • Drill Hole CJV-81 shows three near surface mineralized zones, including 9.0m grading 7.86 gpt Au and 10.0m grading 7.08 gpt Au.
  • Drill Hole CJV-84 shows multiple near surface mineralized zones totalling 40.0m, including 13.0 m grading 5.87 gpt Au.
  • Drill Hole CJV-90 reported an interval of 27.0m grading 5.34 gpt Au.
  • Drill Hole CJV-92 reported an interval of 13.0m grading 5.49 gpt Au.
  • Drill Hole CJV-96 reported an interval of 11.0m grading 5.95 gpt Au.
  • Drill Hole CJV-95 shows multiple mineralized zones 500m to the East of the previously calculated resource area at Dachang East Main Zone.

Additional drill hole assay results in chart form can be seen here.

On November 2, 2006, Inter-Citic released results from 10 new drill holes at Dachang East Main Zone. Results included:

  • Drill hole CJV-100 includes a 5 metre near surface interval of 20.4 grams per tonne gold
  • Drill hole CJV-98 includes a 17 metre near surface interval of 3.0 grams per tonne gold, plus another 5 metre interval of 5.34 grams per tonne gold;
  • Drill hole CJV-106 includes a 7 metre interval of 5.0 grams per tonne gold at a depth of 120-127m, which is below the previously estimated inferred resource at Dachang East Main Zone;

On December 11, 2006, Inter-Citic released results from 10 new drill holes at Dachang East Main Zone. Multiple zones of gold mineralization were discovered in 9 out of 10 holes reported. Results included:

  • Drill Hole CJV-113 reported 13 metres of 4.66 gpt Au and 10 metres of 2.53 gpt Au,
  • Drill Hole CJV-110 reported 12 metres of 4.42 gpt Au and 9 metres of 2.34 gpt Au

Complete drill hole assay results in chart form can be seen here.

On January 16, 2007, Inter-Citic released results from the remaining 25 new drill holes at Dachang East Main Zone. Multiple zones of near-surface gold mineralization were discovered in 24 out of 25 holes reported. Results included:

  • Drill Hole CJV-120, which includes an interval of 4.0 m of 15.64 gpt/Au
  • Drill Hole CJV-125, which includes an interval of 15.0 m of 2.80 gpt/Au
  • Drill Hole CJV-140, which includes an interval of 13.0 m of 4.35 gpt/Au

Complete drill hole assay results in chart form can be seen here.

On February 7, 2007, Inter-Citic released results from new trenching at Dachang. Five new areas of gold mineralization were discovered through trenching during the 2006 exploration season at Dachang. Three of the new areas of discovery (Placer Valley Anomaly, DMZ Offset and Little Ruby) are near the Dachang Main Zone resource area. All three of these zones are open along strike and together have an aggregate surface zone length of approximately 1.3 kilometres. Details can be seen here, along with a map of the new areas.

2005 Drilling Program Results Summary:

On December 12, 2005, Inter-Citic released the details of shallow diamond drilling of targets located in the North River district. As a result of this limited drilling, the Company was able to calculate a new and additional inferred gold resource of 1.28 million tonnes grading 5.81g/t gold (approximately 238,000 ounces of contained gold) on the NR-2 anomaly, making the total NI 43-101 compliant inferred gold resource at Dachang in excess of 1.5 million ounces with an average grade of 6.78 gpt Au (7.0 million tonnes at 6.78 gpt Au).

NR-2 Drilling Program Results

Inter-Citic's 2005 exploration season at Dachang commenced in June, 2005 with an extensive trenching program across the 21 major new gold soil anomalies. Results have been released for North River anomalies NR-1 and NR-2 as well as trenches in Dachang Central. A final report consolidating the remaining results of 2005, including trenching, remaining diamond drill holes and gold soil geochemistry, was announced in a press release dated March 21, 2006. An accompanying map locating the last six drill holes of 2005 can be seen here.

Inter-Citic's 2005 drilling program commenced on North River district anomalies in October, 2005, with reported results from North River released December 12, 2005. Results from Dachang Central were announced in a press release dated March 21, 2006.

2004-2005 Trenching Program Results Summary

Almost 30,000 soil samples were taken in 2004 and 2005 over the entire property. The Company identified through soil geochemistry 24 major new gold anomalies in addition to the original inferred resource, along with dozens of smaller ones. More detailed descriptions of the anomalies along with area maps are available through the links below.

Central and Southwest Dachang soil geochemistry results released in June 30, 2005 Press Release with accompanying map

Dachang North soil geochemistry results released in May 3, 2005 Press Release with accompanying map

Western Quarter soil geochemistry results released in May 2, 2005 Press Release with accompanying map

North River District soil geochemistry results released in April 25, 2005 Press Release with accompanying map

Trench, drill and other survey results in the Company's February 11, 2005 Press Release and accompanying map

Inter-Citic has now completed its third season of exploration at Dachang and first major drill program. 2006 was marked by an extensive drilling program of over 15,000 m, focussed on resource definition and expansion at Dachang East Main Zone.