China Resources

[Ed Monton]

Majestic hits zone IV mineralization at Sawayaerdun

2004-11-03 20:46 ET - News Release


Mr. Rod Husband reports

SAWAYAERDUN DRILL RESULTS

Majestic Gold Corp. has provided results from a five-hole drilling program on the company's Sawayaerdun gold project in the Chinese province of Xinjiang. The 1,605-metre drill program was successful in confirming the continuity and grade of gold mineralization identified in trenches excavated over an 850-metre strike length. Results of the trenching program were reported by the company in a news in Stockwatch dated Sept. 9, 2004. Drilling tested mineralization along 350 metres of strike length and to depths ranging from 50 metres to 340 metres below surface.

All five holes intersected gold mineralization in the central portion of zone IV, a four-kilometre-long mineralized shear zone, previously identified by the company's joint venture partner, the Xinjiang Bureau of Geology and Mineral Resources (XBGMR). Highlights from the program include 54 metres grading 1.54 grams per tonne (g/t) gold, 50 metres grading 1.43 g/t gold, 29 metres grading 2.17 g/t gold and 60 metres grading 1.19 g/t gold. All mineralized intervals are listed in the table below.

Hole SWD04-01 was drilled 50 metres south of XBGMR drill hole ZK-2702, which was reported to have intersected 2.57 g/t gold over 25.4 metres. Hole SWD04-05 was drilled 25 metres north of XBGMR drill hole ZK-001, which was reported to have intersected 1.91 g/t gold over 11 metres and 1.36 g/t gold over 23.3 metres. Location maps showing the drill holes and the 2004 trenches are available on the company's website at www.majesticgold.net.

 
  
       SAWAYAERDUN DRILL RESULTS 
  
 Hole  Grid location  From To Length Au 
 No.    
                (metres)            (g/t) 
  
 SWD04-01 1+00 South  148  152   4  1.40 
                      164  174  10  1.81 
                      191  203  12  0.92 
                      252  281  29  2.17 
  
 SWD04-02 1+50 South  155  157   2  1.72 
                      284  298  14  0.72 
                      314  368  54  1.54 
  
 SWD04-03 2+00 South  156  159   3  2.18 
                      170  220  50  1.43 
 incl.                170  197  27  2.10 
  
 SWD04-04 4+00 South   56   90  34  0.86 
                      143  150   7  1.60 
                      168  213  45  2.07 
  
 SWD04-05 4+50 South   65  125  60  1.19 
 incl.                 65   77  12  1.45 
 incl.                 84  121  37  1.38 
  
 

.........


True widths are estimated to be approximately 70 per cent of the cored interval.

Company chairman, Robert Hunter, said today: "We have only tested a small portion of the expansive mineralized system at Sawayaerdun and are extremely encouraged by the results. We look forward to continued success."

The company will conduct an initial scoping study and has shipped three separate bulk samples to Canada to begin preliminary metallurgical testing. These samples have been sent directly to Research Process Associates in Vancouver.

Gold mineralization at Sawayaerdun is hosted by Silurian- and Devonian-aged carbonaceous phyllites in a widespread gold system that breaches surface in over 20 separate zones; the main northwest-trending gold zones are located in the north-central portion of the property and cover an area of five by 2.5 kilometres. Zone IV has received the most attention to date and can be traced along strike for over four kilometres. XBGMR report 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 g/t Au) in a 2,000-metre section of zone IV. Metallurgical testing by XBGMR report that approximately 75 per cent of the gold is recovered through a simple fine grinding and cyanidation process and that approximately 59 per cent of the gold occurs as fine-free gold. (These estimates were completed by Chinese professionals but not pursuant to National Instrument 43-101 or current CIM guidelines).

Three other major subparallel gold zones (I, II, XI) have been identified in trenching for between 1,600 (zone XI) and over 3,000 metres (zones I and II). These additional gold zones occur in an anti-clinal structure that continues northeast into Kyrgyzstan, where there is a reported resource of 1.1 million ounces of gold (this resource estimate is not compliant to National Instrument 43-101 or current CIM guidelines).

The Sawayaerdun project as a whole covers 123.2 square kilometres, between longitude 74 degrees 10 minutes and 74 degrees 23 minutes east and from 40 degrees north to the border of Kyrgyzstan. The project lies in the southern Tian Shan gold belt, which stretches from Inner Mongolia west to Uzbekistan and which hosts such deposits as Muruntau (over 140 million ounces of gold) and Kumtor (over 13 million ounces). Majestic has the right to earn a 90-per-cent interest in the project by financing all exploration and development, subject to minimum cumulative exploration expenditures of $2-million (U.S.) over four years.

The 2004 Sawayaerdun exploration program has been carried out under the supervision of Stephen Kenwood, PGeo, and David Pollard, both considered to be qualified persons as defined by National Instrument 43-101. All assaying has been performed at the Central Laboratory of the Institute of Geophysical and Geochemical Exploration, Chinese Academy of Geosciences (ISO 9001 certified), which is located in Langfang, Hebei.

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