Vancouver – With 2006 drill data from its Xietongmen copper-gold deposit in the Tibetan Autonomous Region of China now compiled, Continental Minerals (KMK-V, KMKCF-O) has calculated a 50% resource expansion for the advanced-stage project.
Measured and indicated resources now stand at 219.8 million tonnes grading 0.43% copper, 0.61 gram gold per tonne and 3.87 grams silver per tonne using a 0.15% copper cut-off grade; giving the deposit about 2.1 billion lbs. of contained copper and 4.3 million oz. of contained gold.
Continental’s estimate is based on 200 vertical holes (about 47,000 metres) drilled on 50-metre centres over an area of about 1,200 metres northwest-southeast and 600 metres northeast-southwest. The mineralized zone is as much as 300 metres thick in sections but averages about 180 metres.
The company recently completed a merger with previous joint venture partner Great China Mining to both unify and expand its landholdings. Exploration has identified at least two other large mineralized occurrences on the land package.
Continental is advancing Xietongmen through the feasibility stage and expects completion of the report by mid-2007.
Despite being located about 240 km west-northwest of the city of Lhasa, Xietongmen is situated adjacent to a paved road and power grid. Further, a rail line extension from Lhasa to the nearby city of Shigatse (about 40 km from the project) has been approved and will give direct access to Chinese smelters and refineries.
Shares of Continental Minerals trade at the $1.78-level at presstime giving the company a $161 million market capitalization based on 90.7 million shares outstanding. The stock posts a 52-week trading range of $1.31-to-$2.96.
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