APAC expands Carlin-style gold at Nibao

Vancouver – Drilling by APAC Minerals (APC-V) at its Nibao project, in Guizhou province of southwest China, has intersected the highest gold grades to date in drill core.

Two Carlin-style mineralized zones have been identified at Nibao, the Western and Emeishan zones, that occur along the same trend and over a continuous 1.2 km. of strike length. High-grade gold values have been encountered in surface channel samples and in drill core.

Drilling on Emeishan cut high gold grades within a highly sulphidic (pyrite) turbidite-sandstone unit. Drill hole NBDDH044 intersected 9.7 metres (from 22 metres) grading 7 grams gold per tonne near surface within the Emeishan sandstone unit, including 3.7 metres averaging 15.5 grams gold and 2 metres of 23.7 grams.

The drill hole is the furthest west on the Emeishan zone, that remains open both eastward and westward (towards the Western zone), as well as south and down-dip. The area between the zones shows a continuous IP 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. along an east-northeasterly trend, along the major faulting in the area, and is up to one kilometre in width.

A third zone (Mayday), located about 600 metres east of Emeishan, hosts high-grade gold mineralization that has attracted a host of illegal mining activity that APAC has been endeavouring to stop.

Nibao has been actively mined by artisanal miners over several years from numerous pits and active leach pads. It is estimated that about two million tonnes of material has been mined in this method. The mining has targeted the near surface oxide zone, utilizing small scale mechanical and hand methods.

In 2002, APAC entered an agreement with the Guizhou Bureau of Geology and Mineral Resource whereby they can earn up to 84% of the project by spending US$2 million over three years and bringing it to development stage through a positive feasibility study.

As of the latest figures, APAC reports 32.9 million shares outstanding, with the issue having gained about a dime in its recent rally from the mid-30 to mid-40 level before giving back the gains on high volumes.