Exploration

A drilling program commenced in early 2008, and set out below are the exploration works completed in 2008:

  • Drilling holes 8,671 meters;
  • Tunneling 1,946 meters ;
  • Trenching 500 meters;
  • Assay analysis 741pieces;
  • Primary halos 1,129 pieces;
  • Drill core store 7,844 meters;
  • Geological mapping 2 square kilometers;
  • Gold reserves and resources have increased by 6.6 tonnes to 41 tonnes, representing an increase of 19.27%.

The initial results have been encouraging, and valuable minerals other than gold were also discovered:

Q4138 - Nine holes drilled, five of them hit gold ore bodies, two gold mineralized structures discovered by three drill holes

  • ZK401: 91.84 to 92.89 metres, 1.05 metres @1.54g/t; 120.34 to 124.74 metres, 4.4 metres @2.97g/t.
  • ZK402: 153.17 to 157.87 metres, 4.7 metres @5.92g/t; 208.72 to 210.23 metres, 1.51 metres @3.82g/t.
  • ZK301: 162.13 to 169.93 metres, 7.8metres at 7.0g/t

Vein Q4138

Q576 - Three holes hit gold ore body

  • ZK701: 201.14 to 202.44 metres, 275.89 to 278.04metres and 281.29 to 282.44 metres, total 4.6metres @6.5g/t

Q8701 - gold appears on the surface for over 5000m long and 3 to 13 metres thick

  • ZK801: depth is 300 metres, hit gold ore body at 245.07 to 257.34 metres, 12.27 metres @3.35g/t;

Q424 - three level tunnels control ore body over 80 metres long and 50 metres deep, thickness is about 0.4 to 0.7 metres, gold grade is averaged 3.51g/t;

Q05 - two level tunnels control ore body of 300 metres long and 25 metres deep, thickness is 1.11 metres and average grade is 8.51g/t;

Q470 - ZK3102 hit 4 layers of gold veins, and ZK4702 hit 2 layers of gold ore bodies

Q419 (忍沟)- tunnel Kt11 controls ore body over 80 metres, dip to 35 metres under control, thickness is around 1 metre and average grade is 5g/t.

Q514 and Q535 -ZK 12001 controls Q514 of 0.5metres @1.74g/t, and ZK13606 controls Q514 of 0.8metres @3.17g/t