Inter-Citic Minerals (TSE:ICI) reported Monday the first drill results from its 2011 exploration program at its Dachang gold project in China, with efforts now focused on the outlining of a second potential open pit gold deposit.
The company said from this respect, results to date have been "very encouraging".
The first set of reported drill results are from early exploration and condemnation drilling at Dachang, in areas of the property outside of the Dachang Main Zone (DMZ), which is now in the permitting phase.
There were several notable holes reported, including an interval of 4.70 metres at 25.9 grams per tonne (g/t) of gold, including a 1.0 metre interval of 107 g/t gold in hole CJV-1202 in the South East Area.
Drill hole CJV-1179 on the South East Area also returned an interval of 4.70 metres with an average grade of 2.34 g/t gold.
Meanwhile, hole CJV-1214A on the Acadia Zone also returned 4.0 metres at 6.05 g/t gold, while hole CJV-1215 in the same area intersected 8.0 metres with an average grade of 3.91 g/t gold.
Also in the Acadia Zone, hole CJV-1173 found multiple intercepts, including 4.2 metres at 3.7 g/t gold and 4.3 metres of 2.63 g/t gold. Hole CJV-1150 returned 16.5 metres of 1.92 g/t gold, while hole CJV-1154 intersected 7.1 metres of 2.04 g/t gold.
As of late November, the company said it had drilled a total of 149 drill holes, comprising 21,592 metres of drilling at Dachang this year.
Eight drills have been testing new exploration targets on the property and it is anticipated that the full 25,000 metre program will be finished in December, with results continuing to be reported during January and February of next year.
Drilling on these new zones was initiated to increase confidence in the potential of these discoveries, with a goal of showing further economic potential at Dachang, north of the main DMZ.
At Acadia, two seperate lenses of mineralization have been discovered to date, with the western lens having been defined over a 400 metre strike length. Forty metre-spaced drill fences continue to expand the eastern mineralized zone to the southeast. The eastern lens now has a strike length of at least 950 metres, and is still open to the east.
In the South East Area, a trenching program was started on gold-in-soil anomalies southeast of the original DMZ discovery. The company said trenching on anomalies to the north and south returned "very encouraging" results, and 38 new drill holes totalling 4,483 metres have now been completed in this 35 square kilometre gold district. Results from the first 14 of these holes were reported Monday.
Meanwhile, the company is also focused on exploring the 861 and XP Zones, where so far this year, 4,500 metres of trenching has been completed. The total strike of the 861/XP Zones now appears to be 2.8 kilometres, said Inter-Citic. Results from these areas are still pending.
As part of the permitting phase for the DMZ area, Inter-Citic said it has also now completed sterilization drilling in and around the zone, also known as condemnation drilling. This is done to test areas around and below regions of proposed construction, such as buildings, roads, power lines, pipelines, or tailings disposal areas, to ensure that no valuable minerals lie below or next to these structures.
The company said these condemnation holes confirmed its opinion that the DMZ/PVZ permitting plan can proceed without sterilizing any adjacent mineralization. Inter-Citic believes this work shows that additional mineralization will in time be developed adjacent to the original deposit.