APAC cuts high-grade gold at Nibao

Vancouver — Drilling by APAC Minerals (APC-V) at its Nibao project in southwestern China has intersected the highest gold grades to date.

Carlin-style mineralization was identified at the Western and Emeishan zones, which occur along 1.2 km of continuous strike length, and high grades were encountered in surface channel samples and drill core.

Drilling at Emeishan cut high gold grades in a highly sulphidic (pyrite) turbidite-sandstone unit. Drill hole 44 intersected 9.7 metres (from 22 metres) grading 7 grams gold per tonne near the surface within the Emeishan sandstone unit, including 3.7 metres of 15.5 grams and 2 metres of 23.7 grams.

The Emeishan zone remains open both eastward and westward (toward the Western zone), as well as south and downdip. The area between the zones has continuous induced-polarization chargeability.

The Carlin-style gold mineralization at Nibao is hosted in Permian turbiditic-carbonaceous lithic-rich sandstones, as well as in limestones and siltstones. These sediments are intruded by dolerite sills that host the high-grade gold grades found at surface. Significant structural control is also evident in the mineralization, which extends about 4 km on an east-northeasterly trend, along the major faulting in the area, and is up to 1 km in width.

A third zone, Mayday, about 600 metres east of Emeishan, also hosts high-grade gold mineralization. Not surprisingly, the zone has attracted a host of illegal mining, which APAC has been endeavouring to stop.

Nibao has been actively mined by artisanal miners over several years from numerous pits and active leach pads. About 2 million tonnes of material have been mined in this method. The mining has targeted the near-surface oxide zone, using small-scale mechanical and hand methods.

The Nibao project is in Guizhou province. In 2002, APAC entered an agreement with the Guizhou Bureau of Geology and Mineral Resource whereby the company can earn up to a 84% interest in the project by spending US$2 million over three years and advancing it to the development stage.

APAC has 32.9 million shares outstanding and trades in the range of 35-45.