GobiMin Inc - Diamond drilling results continue to advance Sawayaerdun Gold Project

TSX-V: GMN

TORONTO, Nov. 17, 2011 /CNW/ - (TSXV:GMN) GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce assay results for the first 23 diamond drill holes received from its recently completed 92 hole infill program at the Sawayaerdun Gold Project.

Highlights of the current release include:
ZK2305-1 with an intersection width of 67.1 m of 2.02 g/t gold from a depth of 140.0 m;
ZK4315  with an intersection width of 83.9 m of 1.39 g/t gold from a depth of 412.6 m;
ZK4701-1  with an intersection width of 31.8 m of 3.24 g/t gold from a depth of 37.8 m;
ZK5109  with an intersection width of 83.6 m of 1.65 g/t gold from a depth of 385.0m;
ZK5904  with an intersection width of 30.1 m of 2.27 g/t gold from a depth of 321.5m.

Sawayaerdun Gold Project Update

The Company completed all its planned 92 diamond drill hole program at Sawayaerdun in the northwest of Xinjiang, China as scheduled in October 2011 for a total of 31,685.23 m. The drilling concentrated on in-filling and below earlier drilling along the main mineralized structure at Zone IV to improve the reliability of the previously announced NI 43-101 compliant resource estimate and extending the resources at depth, as well as better delimiting another mineralised structure at Zone I approximately parallel and located 1,200 m to the east of Zone IV. Results are still pending for 69 holes.

The next drilling program at Sawayaerdun, to further infill the drilling at Zone IV and to test other mineralized structures in the Company's tenements, is planned to commence next spring in April 2012 after the forthcoming winter. Preparations in support of an updated resource estimate for Zone IV is well underway and an initial resource estimate for Zone I is expected once all the remaining assays have been received, hopefully by the end of 2011.

Sawayaerdun Geology

The Zone IV and Zone I structures are part of a series of sub-parallel shears that dip steeply, approximately 70 degrees, to the west following a structural corridor that strikes east-northeast within fine grained Devonian clastic metasediments.  These metasediments are composed of a turbidite sequence that has been altered to phyllites becoming more carbonaceous in the proximity of the mineralized shears, see Figure 1.  The mineralized shear making up Zone IV is mapped over a strike length of over 6,500 m within GobiMin's tenements with drilling confirming that this structure is mineralized along the whole of this strike length and at depth.  Mapping along Zone I has shown that the mineralized structure continues over 3,200 m of strike length.

The most significant drill hole intersections, bulked at a lower cut-off of 0.5 grams/tonne gold, from the assays received by the end of October under the 2011 drilling program are included in Table 1 below.

Table 1. Significant drill hole intersections received to the end of October from the 2011 drilling program

Hole ID From To Metres Approx
Intersection
Dip
Approx
True
Width(1)
Average
g/t Au
Gm*m(2) Sample
Type
IZK0816 128.30 151.15 22.85 -82 7.1 1.07 7.58 Diamond
IZK0816 156.90 169.15 12.25 -82 3.8 1.68 6.36 Diamond
IZK0816 176.15 186.90 10.75 -82 3.3 2.09 6.94 Diamond
IZK2404 109.05 122.05 13.00 -58 8.6 1.57 13.52 Diamond
IZK4004 133.30 140.80 7.50 -58 5.0 1.92 9.62 Diamond
IZK4004 172.00 185.60 13.60 -58 9.2 0.98 8.99 Diamond
ZK0406 56.95 64.15 7.20 -84 2.0 2.82 5.60 Diamond
ZK1201 117.50 139.00 21.50 -79 7.8 0.95 7.39 Diamond
ZK1904 348.30 387.80 39.50 -82 12.0 1.59 19.04 Diamond
ZK2305-1 140.00 207.10 67.10 -72 31.2 2.02 63.00 Diamond
ZK3504 197.20 202.20 5.00 -59 3.3 1.55 5.07 Diamond
ZK3504 220.20 243.00 22.80 -58 15.2 1.58 23.91 Diamond
ZK3505 220.30 240.30 20.00 -70 10.1 2.08 21.07 Diamond
ZK3505 244.30 257.70 13.40 -70 6.8 1.67 11.31 Diamond
ZK3505 271.70 289.60 17.90 -70 9.1 1.13 10.21 Diamond
ZK3506 329.80 340.30 10.50 -69 5.4 1.00 5.43 Diamond
ZK3906 220.00 249.50 29.50 -63 17.8 1.61 28.67 Diamond
ZK4313 270.20 309.00 38.80 -72 18.4 1.12 20.60 Diamond
ZK4314 345.40 360.10 14.70 -72 6.8 0.99 6.74 Diamond
ZK4314 370.20 382.20 12.00 -72 5.6 1.17 6.61 Diamond
ZK4315 412.60 496.50 83.90 -80 28.8 1.39 40.14 Diamond
ZK4315 508.50 525.50 17.00 -79 6.2 0.87 5.39 Diamond
ZK4701-1 27.60 34.80 7.20 -65 4.1 2.86 11.81 Diamond
ZK4701-1 37.80 69.60 31.80 -65 18.5 3.24 59.75 Diamond
ZK5108 320.30 332.30 12.00 -72 5.6 1.79 10.08 Diamond
ZK5109 385.00 468.60 83.60 -80 29.0 1.65 47.73 Diamond
ZK5904 321.50 351.60 30.10 -69 15.5 2.27 35.12 Diamond
Intervals >10.0 g/t Au(3)
Hole ID From To Metres Approx
Intersection
Dip
Approx
True
Width(1)
Average
g/t Au
Gm*m(2) Sample
Type
ZK4701-1 50.60 51.60 1.00 -65 0.6 16.32 9.48 Diamond
ZK4701-1 52.60 53.60 1.00 -65 0.6 14.63 8.50 Diamond
ZK4315 491.80 492.50 0.70 -80 0.2 10.14 2.44 Diamond

Note: (1) Approximate True Width assumes dip of mineralisation to be 70 degrees west.
  (2) Results where g/t x m is less than 5.0 are not reported in this table.  No high grades were cut when calculating average grades.
  (3) These intervals are included uncut in the significant intersections tabulated above.

The assay results obtained from this drilling were not significantly different to existing nearby holes so were within the expected range and extended over the expected intervals. The deeper intersections however have confirmed the continuity of the mineralization at depth.

Sampling Methodology, Quality Control and Assurance

Samples were assayed for gold by the Geophysical and Geochemical Exploration Team of Xinjiang Geology Bureau laboratory in Urumqi, Xinjiang, China using the activated carbon absorption of dissolved gold in aqua regia technique. A program of QA/QC sampling and assays has been instituted by the Company's geological staff that will determine the quality of all the current and previous assay results obtained to date.  The retrospective QA/QC program will include re-assaying a number of samples collected over the last three years along with included duplicates, standards and blanks at both the Xinjiang Geology Bureau laboratory and at an independent laboratory in Australia.

The Xinjiang Geology Bureau laboratory did include duplicate assays of five percent (i.e. one sample in twenty) of the samples assayed along with inserting regular standard solutions as part of their standard QA/QC procedures.

Current Sawayaerdun Resource

A NI 43-101 compliant resource estimate for Zone IV at Sawayaerdun was announced earlier by GobiMin on March 21, 2011.   At a lower grade threshold of 0.5 grams/tonne gold, the Zone IV was estimated to contain Indicated resources of about 34 million tonnes with an average grade of 1.3 grams/tonne gold and Inferred resources of about 13.5 million tonnes with an average grade of approximately 1.0 grams/tonne gold.

The technical content of this news release has been reviewed and approved by Philip Jones, B App Sc, AusIMM, AIG, the Company's consultant geologist and a Qualified Person as defined by the NI 43-101.

Future Development

In addition to further development drilling commencing in April 2012, the Company will initiate a feasibility study and prepare a development plan during 2012. The Company's available cash and cash equivalent funds are sufficient to finance the development of the Project but the Company will also be considering domestic bank financing in China in order to bring the project into production earlier.

About GobiMin

As at September 30, 2011, GobiMin had approximately USD62.96 million (CAD62.56 million) in cash and cash equivalent, which represents approximately USD1.01 (CAD1.00) per share based on the total issued capital of 62,618,337 shares.

GobiMin owns an indirect equity interest of 70% in Xinjiang Tongyuan Minerals Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang, China. GobiMin also owns a 40%-50% interest each in four other base metal joint ventures in Xinjiang and an 8% equity interest in the Yanxi Copper Deposit.  In addition, the Company also holds a 49% equity interest in a silver operation.

GobiMin is aggressively seeking opportunities to acquire high quality mining and exploration projects.

Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. The readers are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. Forward looking information includes without limitation, statements regarding the size and quality of the Company's mineral resources, progress in development of mineral properties, the prospective mineralization of the properties, and planned exploration programs. The readers should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate.  These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

To receive GobiMin press releases by email, send a message to info@gobimin.com and specify "GobiMin press releases" on the subject line.


 

 

PDF with caption: "GobiMin Inc.". PDF available at: http://stream1.newswire.ca/media/2011/11/17/20111117_C6931_DOC_EN_6793.pdf

SOURCE GobiMin Inc.

For further information:

Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500
Email: felipe@gobimin.com 

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GobiMin Inc.

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