China Gold International increases resources at Jiama by over 400%
China Gold International Resources (TSE:CGG) announced Thursday it has boosted the resource at its Jiama copper-polymetallic property by over 400%.
The Jiama property is located in the Gandise metallogenic belt in the Tibet region of China. Currently in production stage, the project hosts copper, molybdenum, gold, silver, lead and zinc.
The measured and indicated resource at Jiama now consists of 1.006 billion tonnes averaging 0.41% copper, for 4.08 million tonnes of contained copper. This compares to 185.1 million tonnes at 0.74% copper, for 1.38 million tonnes of contained copper, from the previous estimate in June 2010.
The latest estimate, which is based on 300 holes, includes results from China Gold's 2010 drilling program.
The inferred category contains 170.1 million tonnes at 0.51% copper, 0.048% molybdenum, 9.48 g/t silver, 0.17 g/t gold, 0.07% lead, and 0.04% zinc.
"The increase in resources and production at Jiama is one of the cornerstones underlying the significant organic growth in resources on owned projects that the company is experiencing," said CEO, Dr. Xin Song.
"The company will continue to drill in 2011 and expects to expand the overall resources with the deposit, in which all three types of mineralized bodies remain open along their strike and down dips.
"We are especially excited to begin exploring a standalone gold deposit and other porphyry deposits within the Jiama deposit area in 2011."
The updated resource estimate is the basis for the ongoing phase two production-expansion feasibility study, due for release in 2012, and will also be used to develop a model for the expansion of the project's production facilities.
China Gold's stock on the Toronto Stock Exchange rose 4.08% as of 9:43 am EDT, trading at $4.34 per share.
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