Afcan extends Jinlonggou high-grade

Shares in Afcan Mining (AFK-T) shot up 4, or more than 15%, to 30 in early trading in Toronto on June 15, after the company reported some encouraging drill results form its Tanjianshan gold project in west-central China.

So far, the company has sunk 23 holes for 3,830 metres. The holes are part of a 13,000-metre HQ core-drilling program planned for the past-producing Jinlonggou and Qinlongtan deposits, 26 km apart on the property.

Partial results from the first four holes are highlighted by a 21-metre interval (beginning 79.7 metres below surface) running 13.6 grams gold per tonne in hole 68. A 5.3-metre (from 119.5 m) section lower in the hole runs 6.6 grams gold.

Results from the remaining holes include:

• hole 65 — 1.9 metres (from 140.7 m) of 2.15 grams gold and 6.1 metres (from 148.4 m) grading 6.3 grams gold;
• hole 67 — 3.8 metres (from 67.4 m) averaging 3.9 grams gold; and
• hole 69 – 3.1 metres (from 46.4 m) of 5 grams gold.

Holes 67 and 69 are collared on the northern end of the deposit, whereas holes 65 and 68 were sunk at the southern end. The drilling targeted north-south oriented faults and sub-horizontal diorite sills on the eastern side of the deposit.

Afcan says the results, along with those from holes nos. 70, 75, 81, 82 and 83 (results not yet reported), have traced the new mineralized zones from the main Jinlonggou deposit to the Pubugou satellite deposit. Further drilling is planned.

In March, Afcan pegged Jinlonggou’s indicated resources at 2.3 million tonnes grading 5.23 grams gold per tonne; another 1.1 million tonnes running 4.9 grams gold are classified as inferred resources (T.N.M., May 17-23/04).

At Qinlongtan, indicated resources stand at 772,400 tonnes grading 7.49 grams gold, plus 1.1 million tonnes at 4.9 grams gold in the inferred category. Both estimates are based on a cutoff grade of 1 gram gold per tonne.

Elsewhere on the 340-sq.-km property, Afcan plans 2,000 metres worth of drilling to test a few of the 25 gold prospects delineated so far.

Afcan has an option to earn 85% of Tanjianshan through the joint-venture company Qinghai Dachaidan Mining. A prefeasibility study completed in late 2002 calls for construction of an underground mine capable of producing 70,000 oz. gold per year over six years.