China Resources

[Tackler]

Dynasty Gold completes 18 holes at Hatu project

2004-09-30 14:06 ET - News Release

Mr. Jonathan George reports

DYNASTY RECEIVES ASSAYS FROM DRILLING

Dynasty Gold Corp. has provided an update on its Hatu gold project in the Xinjiang autonomous region of northwest China. As of Sept. 28, 18 holes have been completed at Hatu using Chinese diamond drilling rigs for a total depth of approximately 3,300 metres. The company previously announced four holes from this area, including hole ZK421B, which returned an intersection grading 5.1 grams per tonne Au over 64.7 metres (see news in Stockwatch Aug. 24, 2004). Assay results for four additional holes have been received and are shown in the following table.

 
  
 Hole   Original Twinned From  To   Au 
 ID      depth    depth   (m)  (m) (g/t) 
           (m)      (m) 
  
 ZK205B   120       48   20.0 26.0  3.0 
                         39.0 45.0  3.5 
  
 ZK382B   236      212   13.9 15.9  1.2 
  
 ZK423B   120      199   10.9 16.9 0.77 
                         24.0 27.4  2.6 
  
 ZK427B   242      100   17.0 21.6  1.1 
                         28.0 31.5  1.5 
                         36.2 51.4  1.1 
                         54.5 58.5  1.5 
                         64.6 68.9  1.6 
                         73.6 79.2  1.3 
 

Assay results for the remaining holes are pending.

A western-style diamond drill (Edco Ltd.) capable of drilling angle holes is now operating at the site. This will help the company more accurately determine the resource potential of the area. Edco has been contracted to drill 6,000 metres this year.

Additionally, approximately 3.2 kilometres of trenching (3,000 samples) and 8,700 soil samples have been collected. Geophysical surveys, including 87 kilometres of induced polarization and 44 kilometres of magnetometer survey, have also been completed. This information is being compiled and evaluated.

Jonathan George, president of Dynasty Gold Corp., states: "We are excited about the results to date. Our exploration focus this year has been on a small area, approximately 25 square kilometres, with the intention of establishing a resource, but this is only 1 per cent of the area of mutual interest we are evaluating in this region. I believe our chances of success in Xinjiang are very high." Dynasty, in partnership with Xinjiang Non-Ferrous Metals Group, is exploring an area of mutual interest of 2,500 square kilometres in Xinjiang and, together with its projects in Qinghai and Gansu, has one of the largest land positions of any foreign company to explore for precious metals in China.

Exploration is under way at Qinghai and is scheduled to shut down for the winter on Oct. 18. It is estimated that by that time, more than 5,000 soil samples will have been collected. The results will be compiled over the winter, with follow-up exploration planned for the spring.