GobiMin increases In-Situ Nickel & Copper by Almost 100% for Yellow Mountain Nickel-Copper Depositadmin
Wednesday, August 6th 2008
GobiMin Inc. announce that the Company has received an updated NI 43-101 compliant Mineral Resource Estimate from Met-Chem Canada Inc. of Montreal (“Met-Chem”) for its Yellow Mountain Deposit (also known as Huangshan Deposit).
At 0.2% Ni cut-off, Indicated Mineral Resources are estimated at over 22 million tonnes averaging 0.45% nickel, 0.30% copper and 0.03% cobalt. The new Indicated Resources almost doubled from the initial Mineral Resource Estimate of 12 million tonnes (See news release on June 11, 2007). Inferred Resources now totals 44 million tonnes averaging 0.46% nickel, 0.30% copper and 0.03% cobalt.
The new mineral resource estimate uses the new data of the 2007 drilling campaign totalling 38 boreholes for 17,200 meters. Met-Chem uses the same cut-off grade factor than the previous estimate that is considered appropriate at this study stage. Resources estimation was done using computerized geological block models and square inverse distance interpolation method. Core samples were analyzed for copper, cobalt and nickel using acid digestion with an Atomic Absorption Spectrometry finish.
The Company is actively preparing a new drilling campaign under the guidance of Met-Chem to test the continuity of the various lenses.
Mr. Raynald Jean, a Qualified Person within the meaning of National Instrument 43-101 and Senior Geologist at Met-Chem, has prepared the National Instrument 43-101 resources evaluation which GobiMin will file on SEDAR within 45 days.
GobiMin is advancing the construction of the Yellow Mountain project towards a production capacity of 4,000 tonnes/day mining and milling capacity. This adds to the Company’s current 1,500 tonnes/day capacity.
GobiMin is a junior mining company with nickel/copper sulphide operations and development properties in northwestern China. Through its subsidiaries, Xinjiang Yakesi Resources Co. Ltd. and Hami Jubao Resources Co. Ltd., GobiMin controls three concessions, within a 10-kilometre radius, totaling 455 hectares. In operation since 1999, GobiMin currently operates two underground mines (Yellow Mountain East and Xiangshan) and is also currently developing its Yellow Mountain nickel/copper deposit. Yellow Mountain project is an intrusive complex 3.9 km long, 600 m thick on west side and 55 m on east side; extends at least 1,500 m below surface. GobiMin’s common shares are traded on the TSX-Venture Exchange under the symbol GMN.