China Resources

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Apac Minerals finds Nibao South gold deposit

2004-10-01 09:23 ET - News Release

Mr. Michael Hitch reportrs

APAC MINERALS DISCOVERS NIBAO SOUTH: A SIGNIFICANT HIGH GRADE CARLIN-TYPE GOLD DEPOSIT ON ITS NIBAO PROJECT, IN CHINA

Apac Minerals Inc.'s exploration team has discovered a significant new Carlin-type, sedimentary-hosted gold deposit within the company's exploration tenements in Guizhou province in China. The new find is located in the southern part of Apac's Nibao project. This discovery demonstrates Apac's expertise in uncovering suspected Carlin-type gold deposits in southern China.

Compilation of results from an induced polarization survey, surface sampling and diamond drilling at the new discovery area returned high gold values that can be extrapolated from one section to another. These are the highest values that Apac has obtained to date from any of its Chinese projects.

 
  
               Best       Average greater 
                          than 0.5 g/t Au 
  
 Hole     Thickness  Au   Thickness  Au 
 No.         (m)    (g/t)    (m)    (g/t) 
  
 West 
 zone 
  
 NBRC087     4.0   11.55     8.0     7.4  
            12.0    5.27    24.0    3.19 
  
 NBRC088     4.0    3.02     8.0    2.16  
  
 Emeishan 
 zone 
  
 NBRC054    11.0    7.03  
 NBRC050     3.0    5.45  
 NBRC052     3.0   11.07  
 NBRC100    12.0    6.74  
 

All drill results have previously been released

At Nibao South, work to date has identified two Carlin-type mineralized zones (Western zone and Emeishan zone) with strong drill core gold values that average between seven to 11 grams per tonne. Both the Western and Emeishan zones are open toward each other and are connected by a continuous induced polarization chargeability zone. The intervening area (Deng's pit) produced surface channel samples with high-grade gold (five ti 22 grams per tonne Au) results. Thus, the Western and Emeishan zones represent a continuous 1,200-metre-long gold mineralization. A third zone (Mayday zone) lies 600 metres east of the Emeishan zone along the same trend and, from preliminary work today, displays the same style of gold mineralization at the same stratigraphic level. The Nibao South mineralization is open to the east, west, south and down-dip.

Figure 1: plan map of the Nibao South discovery

To view figure 1, please visit http://www2.cdn-news.com/database/fax/2000/APC1001a.gif.

Gold mineralization at Nibao is a stratabound and structurally controlled disseminated sulphide mineralization hosted in a periclinal dome associated with a positive flower uplift structure developed at a constrictional bend in a major northeast-striking transcurrent fault. Mineralization at Nibao is hosted in Permian turbiditic carbonaceous lithic-rich sandstone, impure limestone and siltstone. The host sediments are intruded by dolerite sills, which host high-grade surface gold grades. Mineralization is controlled by layer-parallel shear zones and reactivated steep fault architecture. The gold mineralization also coincides with the transition from limestone-dominated lithologies to siliclastic rocks, representing significant chemical and porosity shifts.

Figure 2: Section 10280E of the Western zone

To view figure 2, please visit http://www2.cdn-news.com/database/fax/2000/APC1001b.gif.

Figure 3: Section 11080E of the Emeishan zone

To view figure 3, please visit http://www2.cdn-news.com/database/fax/2000/APC1001c.gif.

Local, small-scale mining has been confined to the oxide zone and is generally done both by mechanical methods (backhoe) and hand methods along a four-kilometre-long, east-west-trending line of open pits centred approximately on the Emeishan zone area. Ore is being trammed by hand from backhoe stockpiles or from handworked areas in shoulder-carried baskets to a hopper and grizzly and then crushed and trammed by hand to heap-leach piles and treated with cyanide.

Next phase


Extension of induced polarization to cover the western continuation of the fault system architecture controlling the Nibao South gold mineralization.
Compilation and interpretation of trace element geochemistry to vector to the principal fluid conduits.
Infill and extend drilling of the discovery zones to confirm strike and down-dip continuity.
Drilling remaining first-order induced polarization targets along strike.

The company believes that the discovery of the Nibao South deposit represents an important milestone for Apac in its quest to identify and explore these examples of China's Carlin-type deposits.

Dr. Renato Bobis, MAusIMM, CP Geo, Apac's exploration manager, the qualified person as defined by National Instrument 43-101, is overseeing the company's exploration work at Nibao and supervised the preparation of the information in this release. Samples were prepared and assayed by Acme Labs in Vancouver. Samples were assayed for gold by fire assay (30-gram) with an ICP-ES analysis. Apac inserted blanks, standard and duplicate samples at the sample preparation stage to monitor the quality control of the assay data.