China Resources

[Ed Monton]

Majestic releases trench results at Sawayaerdun project

2004-09-09 17:51 ET - News Release


Mr. Rod Husband reports

SAWAYAERDUN GOLD PROJECT TRENCH RESULTS

Majestic Gold Corp. has provided results from a trenching program designed to test target 1 on zone IV on its Sawayaerdun gold project located in Xinjiang province, China. A total of 850 metres of strike length was tested by 17 trenches that were completed at 50-metre intervals along strike. Highlights from the trenching program are found in the table below; complete trench results can be found on Majestic's website.

 
    SAWAYAERDUN DRILLING RESULTS 
  
 Trench From To Width Gold  Comments 
 No. 
          (metres)   (g/t) 
  
 MT26    1   17   17  2.12 
   
 MT30    0   39   39  1.47 
   
 MT31    8   36   28  1.14  Open to east 
  
 incl.  21   35   14  1.54 
   
 MT35   10   49   39  1.03  Open to east 
  
 MT36   28   71   43  1.50  Open to east 
  
 incl.  49   71   22  2.14 
   
 MT38    0   53   53  1.57  Open in both  
                            directions 
  
 MT41   11   34   23  1.21  Open to east 
  
 MT42   11   24   13  1.82 
   
 MT43   12   25   13  2.10 
   
 

...............


Zone IV has been traced on surface for over four kilometres along strike and is one of over 20 mineralized gold zones that have been identified on the property in previous exploration by Majestic's joint venture partner, the Xinjiang Bureau of Geology and Mineral Resources (XBGMR). The company is currently completing a diamond drilling program to test gold mineralization at depth in the target 1 area of zone IV. David Pollard, a geologist and qualified person under National Instrument 43-101, is the on-site supervisor of Majestic's exploration at Sawayaerdun.

The Sawayaerdun gold project is located in the Chinese province of Xinjiang, approximately 200 kilometres north of the city of Kashi, a major centre along the Silk Road. The property is within the Tian Shan gold belt, one of the world's most prolific gold districts, hosting numerous large gold deposits, including the 140-million-ounce Muruntau deposit in Uzbekistan and the 17-million-ounce Kumtor deposit in Kyrgyzstan.

XBGMR has reported a total inferred resource (Chinese category D and E) of 26,044,174 tonnes containing 45,246,840 grams (over 1.4 million ounces) of gold (average of 1.75 grams per tonne (g/t) Au) in a 2,000-metre section of zone IV alone. (The estimates were completed by Chinese professionals but not pursuant to National Instrument 43-101 or current CIM guidelines. The company has performed limited work and review to date and is not able to substantiate the reported findings at this time, but has engaged its qualified person to make this review and his findings will be published when available and thus, the current information alone should not be relied on for investment purposes).

XBGMR reports three additional gold zones that were previously trenched on surface over a cumulative length of over 7,500 metres and have not been tested at depth in either adits or drill holes and represent excellent additional targets. Average widths and grades at surface are reportedly 4.37 metres and 1.37 g/t gold.

Majestic has an agreement with the XBGMR to earn a 90-per-cent interest in a joint venture company by financing all exploration and development. To earn its interest, Majestic is required to incur minimum cumulative exploration expenditures over four years of $2-million (U.S.).

WARNING: The company relies upon litigation protection for "forward-looking" statements