China Minerals Intersects Gold Zone at Sky Vein Prospect and Provides Corporate Update

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2012) - China Minerals Mining Corporation (TSX VENTURE:CMV)(HWTHF) ("China Minerals" or the "Company") is pleased to announce results from the final 13 diamond drill holes from the Taurus and Table Mountain Properties of the Cassiar Gold Project, British Columbia. The 2012 drilling program tested areas peripheral to, as well as internal gaps in, the Taurus Gold Deposit and the Sky Vein prospect at Table Mountain. The drill holes reported here targeted two areas: the western margin of the Taurus Deposit on the Taurus Property, and the Sky Vein located 7.5 kilometres to the south on the Table Mountain Property.

Key points of these results include:

  • Hole TM12-06 intersected 12.50 m at 1.91 g/t Au at Sky Vein.
  • Hole TA12-42 intersected 36.15 m at 1.17 g/t Au at Taurus West.

The now completed drilling program comprised 6,857 m of drilling in 43 drill holes at Taurus, comprising an initial 40 drill holes reported in previous news releases dated September 18 and October 2, 2012 and the additional three holes reported here, and 10 drill holes totaling 1,340 m at the Sky Vein prospect on the adjacent Table Mountain Property also reported here.

The Taurus and Table Mountain Properties, which collectively comprise Cassiar Gold Project are 100% owned by China Minerals. Cassiar Gold is a large, 600 square kilometre property located in northwest B.C. Access to the area is excellent as paved Highway 37 bisects the project between Taurus and Table Mountain. The Table Mountain Property contains a fully permitted gold mill and tailings management facility which are available for potential future ore processing.

The Company's Chief Executive Officer, Ling Zhu, is pleased with the overall results of the 2012 drilling program at Cassiar Gold. "The now completed drilling program has advanced our understanding of the Taurus and Table Mountain Properties. In spite of a long history of mining and exploration at Cassiar Gold, we are confident more discoveries will result from systematic, stepwise exploration."

Taurus West

Drill holes TA12-41 through TA12-43 (Table 1) were directed at Taurus West - the western most portion of the Taurus Gold Deposit known for its two distinct styles of gold mineralization. In addition to hosting quartz-ankerite vein-associated gold mineralization (common to the rest of the Taurus Gold Deposit), Taurus West is characterized by a second style of gold mineralization containing 10-20% fine-grained, disseminated pyrite with no veining that has been termed "T3" style. Historic drill holes cutting T3 mineralization returned significant intercepts such as 87.59 metres of 1.43 g/t Au and 25.45 metres of 3.05 g/t Au (true widths uncertain) mostly from north-south oriented drill holes.

The three 2012 drill holes tested Taurus West over a strike length of 450 metres with three westward-directed drill holes. Some broad intervals of elevated gold mineralization were encountered associated with T3 style mineralization.

Table 1: Drill Core Sample Results - Taurus West

Hole Number From (m) To (m) Interval (m)* Weighted Average
(g/t Au)
TA12-41 98.20 124.00 25.80 0.69
TA12-41 133.30 166.50 33.20 1.03
including 150.00 165.60 15.60 1.44
TA12-42 139.40 175.55 36.15 1.17
including 151.00 163.90 12.90 1.63
TA12-43 No significant results

*True widths of reported drill intercept widths are uncertain owing to the wide spacing of drill holes.

Sky Vein

The Sky Vein Prospect is a mineralized, east-west trending fault and shear zone structure located approximately equidistant between the past-producing Main (Erikson) and Cusac Mines. Minimal historic drilling targeted this structure which has a strike length of at least 1,300 metres. The Sky Vein occurs within a steeply-dipping second order structure which splays downward from the shallowly-dipping Table Mountain thrust - a geological setting equivalent to the bonanza grade veins at the nearby past producing mines on the Cassiar Project.

Drill holes TM12-06 through TM12-08 and TM12-10 intersected very thick widths of quartz veining ranging from 8.30 to 30.10 metres (true width). Results (Table 2), however, indicate that adjacent wallrock contains more gold than the quartz. These mineralized intervals are characterized by pervasively sericite-carbonate altered basalt with typically 5% disseminated pyrite that is locally hydrothermal brecciated. Highlight results such as 12.50 metres of 1.91 g/t Au and 7.75 metres of 1.27 g/t Au occur on opposite sides of the 8.30 metre thick vein encountered in TM12-06.

Table 2: Drill Core Sample Results - Sky Vein

Hole Number From (m) To (m) Interval (m)* Weighted Average
(g/t Au)
TM12-01 83.90 90.00 6.10 0.50
TM12-02 No significant results
TM12-03 No significant results
TM12-04 75.90 87.55 11.65 0.82
TM12-04 109.13 115.00 5.87 0.65
TM12-05 32.40 46.46 14.06 0.95
TM12-05 54.00 71.83 17.83 1.00
TM12-06 91.90 104.40 12.50 1.91
TM12-06 118.10 125.25 7.15 1.34
TM12-07 102.20 108.55 6.35 0.77
TM12-08 No significant results
TM12-09 133.81 146.00 12.19 1.15
including 135.00 136.86 1.86 3.25
TM12-10 104.97 112.40 7.43 0.50

*Reported drill intercept widths are approximately 70% of true width.

The 2012 Cassiar Gold field program was managed by Equity Exploration Consultants Ltd. of Vancouver, B.C. and advised by consulting geologists David Rhys, P.Geo., and B.H. Kahlert, P.Eng. Drilling was contracted to Apex Diamond Drilling Ltd. of Smithers, B.C. who averaged 105 m coring per day.

About the Taurus Gold Deposit

The Taurus Gold Deposit is located within the northern part of the Cassiar Gold Project. Taurus hosts an inferred resource of 1.06 million ounces of gold comprising of 33.1 million tonnes at an average capped grade of 0.99 g/t Au using a cut-off grade of 0.50 g/t Au. The resource is supported by a technical report titled, "Updated Resource Report on the Taurus Project - Liard Mining District, B.C.", dated March 11, 2009 and prepared by Thomas C. Stubens and Marinus Andre de Ruijter of Wardrop Engineering Inc., which was filed at www.sedar.com on March 18, 2009 and announced via news release dated March 19, 2009. No economic assessment has been completed on the Taurus resource and consequently it has not demonstrated economic viability.

Quality Control

The Company's technical disclosure in this news release has been verified and approved by Dr. Darcy Baker, Ph.D., P.Geo., an independent Qualified Person as defined by National Instrument 43-101 and President of Equity Exploration Consultants Ltd. Dr. Baker is a consultant to the Company and supervised the 2012 Cassiar Gold project exploration program.

Quality control procedures for the 2012 drilling program comprise systematic insertion of blank and certified standard samples and quarter-core duplicate samples into the drill core sample sequence. Samples were placed in sealed bags and shipped directly to the ALS Minerals preparation facility in Terrace, B.C. prior to gold analysis by fire assay with atomic absorption finish and multi-element analysis by ICP methods at the ALS Minerals laboratory in Vancouver, B.C. For samples returning greater than 5.00 g/t Au, follow-up fire assay analysis with gravimetric finish is completed while samples returning greater than 10.00 g/t Au undergo check analysis by screen metallic fire assay. Three samples returning greater than 10.00 g/t Au reported here have outstanding screen metallic assays. In the unlikely case that these data vary significantly from the gravimetric analyses, changes will be reported in a subsequent news release.

Corporate Update

China Minerals advises that the Company's CEO, Ling Zhu, has been appointed the Executive Chairman of the Company to fill the vacancy created by the stepping down of David Bo, former Executive Chairman.

About China Minerals Mining Corporation

China Minerals Mining Corporation is a Canadian based exploration and development company with offices located in Vancouver, B.C. and Beijing, China. China Minerals' ambition is to build an international mining company.

ON BEHALF OF THE BOARD OF DIRECTORS

Ling Zhu, Chief Executive Officer

Contact:
China Minerals Mining Corporation
(604) 629-1505 or Toll Free: 1-888-629-1505
(604) 629-0923
www.chinamineralsmining.com

View Comments (0)