Xietongmen yields long copper-gold intervals

Ongoing drilling by Hunter-Dickinson-led Continental Minerals (KMK-V) continues to encounter wide intervals of copper-gold mineralization on the Xietongmen project, 240 km southwest of Lhasa in Tibet, People’s Republic of China.

Results from the latest batch of three holes are as follows:

• hole 5015 — 316 metres (beginning 48 metres below surface) running 0.61% copper and 1.11 grams gold, including a 50-metre section (from 182 metres) of 0.79% copper and 1.49 grams gold;
• hole 5016 — 252 metres (from 87 metres) grading 0.55% copper and 0.79 gram gold; and
• hole 5018 — 196 metres (from 12 metres) averaging 0.59% copper and 0.81 gram gold, including 145 metres (from 22 metres) at 0.63% copper and 0.84 gram gold.

Assay results for hole no. 5017 are pending.

The holes were sunk on the southeastern portion of the property. Continental now has six drill rigs working to delineate the new deposit, which remains open in all lateral directions.

Xietongmen is home to porphyry-like, disseminated and quartz-stockwork mineralization. Continental is exploring a 4-km-long alteration zone where two holes sunk previously were highlighted by a 93-metre interval running 1% copper and 1.96 grams gold. A sample from a 200-metre-long adit between the two holes yielded 76.2 metres of 1.23% copper and 1.9 grams gold, including 20 metres of 1.87% copper and 4.01 grams gold.

Continental can earn a 50% interest in Xietongmen by paying China NetTV Holdings (CTVH-O) US$2 million and funding US$5 million of exploration over two years. The junior can boost its stake to 60% by spending another US$3 million on exploration. Thereafter, the project would be funded on a joint-venture basis.

The 12.9-sq.-km property is situated near a paved highway that provides access to the city of Xigaze (with a population of 130,000), 53 km to the east. A hydroelectric transmission line also passes near the southern boundary of the property.

The partners say they have begun a community engagement program with the local residents and various authorities in the region aimed at ensuring that the project respects local socio-economic priorities, provides benefits within the region, and adheres to high environmental standards.