China Resources

[Tackler]

ICI new one...

Inter-Citic Minerals begins exploration at Dachang

2004-09-23 15:44 ET - News Release

Mr. James Moore reports

INTER-CITIC COMMENCES EXPLORATION AT DACHANG GOLD PROJECT, CHINA

Inter-Citic Minerals Inc. has commenced exploration on its 275-square-kilometre Dachang gold project in the province of Qinghai in China. The exploration program consists of gradient magnetometer, electromagnetic and induced polarization surveys; extensive mechanical trenching; sampling; and 15,000 metres of diamond drilling.

To support this exploration activity, Inter-Citic has completed construction of an all-season 30-man exploration camp on the property. A satellite communication system is on site and will provide clear transmission of data to and from the camp.

The primary focus of the exploration program will be to extend the known gold zones on the property and to explore for new zones along the Gaude-Maduo thrust fault, a regional gold-bearing structure, which transects the property.

Recently, regional prospecting by Inter-Citic's partner on the project, the Qinghai Geological Survey Institute, discovered the remnants of an historical underground mining operation on the Gaude-Maduo fault immediately adjacent to the western boundary of Inter-Citic's property, approximately 20 kilometres northwest of Inter-Citic's Dachang gold deposit, reporting an NI 43-101 inferred resource of the 5.7 million tonnes averaging seven grams per tonne gold (approximately 1.3 million ounces -- see SEDAR-filed engineering report of March 12, 2004). Adits, exploration shafts and mine dumps define this zone, which trends southeasterly onto Inter-Citic's Dachang property. This new discovery potentially doubles the length of the gold corridor on the property, previously defined by stream sediment and soil geochemical surveys, from 10 kilometres to 20 kilometres. All of the known gold occurrences in the region are directly related to the Gaude Maduo fault.

Because of the regional geological significance of this new discovery and the indicated resource potential of this new zone, Inter-Citic will direct its initial exploration effort on the strike extension of this new gold zone.

The exploration program is being managed and directed by Garth Pierce, Inter-Citic's vice-president of exploration. Ground geophysical surveys are being carried out using state-of-the-art Canadian instruments directed by Ron Mertens, PGeo, Inter-Citic's on-site consulting geophysicist. Assisting Mr. Mertens on site is Ed Korba, an experienced Canadian geophysical operator and prospector. David G. Wahl, PEng, PGeo, Inter-Citic's internal qualified person, will be joining the team already at the site. The diamond drilling will be carried out by Cyr Drilling International Ltd., a prominent Canadian drilling company. Two specially modified drills and five experienced Canadian drillers have arrived on site in anticipation of the commencement of drilling. Inter-Citic subscribes to E3 environmental best practices for mineral exploration programs and applies these protocols at Dachang.

QGSI will continue to provide experienced geologists, geochemists, geophysicists and exploration technicians in support of Inter-Citic's experienced Canadian exploration team.

Jim Moore, Inter-Citic's president, states: "The establishment of our camp at Dachang is an accomplishment which has required the dedicated efforts of many members of the Inter-Citic team. The project is being managed in the field by capable and experienced people who will benefit from the utilization of new Canadian equipment in combination with the extensive historical know-how of our partner QGSI. I look forward to reporting the results of our work and findings to all of Inter-Citic's stakeholders over the course of the coming weeks and months."