TORONTO, Sept. 21 /CNW/ - Gold World Resources Inc. (GDW-TSX Venture) (the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") with Guizhou Rong Huai Investment Development Ltd. the owner of the producing Jin Yin Dong ("JYD Mine") underground gold mine.
The LOI will allow Gold World the opportunity to perform due diligence on the property and mine with the objective of structuring a commercial transaction, consistent with its focus and strategy in China.
The JYD Mine has resumed operation after a shut down while consolidating and renewing the Mining License which comprises an area of 17.76km(2). The Exploration License of 41.27km(2) includes the Mining License.
The JYD Mine is of the quartz vein type and is located on the Hua Nan North-East trending Fold Belt which crosses several provinces and is host to a large number of gold mines. Reports on the property by government and private sources indicate a "historical resource" of 904kg* of gold contained in 29 deposits of which 14 were defined by adits and 15 by an early diamond drilling program. Gold grades from adits averaged 16.34 g/t and grades from drilling averaged 5.63 g/t. The gold is coarse and occurs mostly in irregular sheet form or granular up to 3.00 mm in size. The gold is carried by shallow dipping stratiform quartz veins. Currently gold is recovered by gravity separation with shaking tables. Three small mills can handle production of approximately 100 tonnes per day.
The property is easily accessible via Guiyang, the capital of Guizhou Province. Gold mining in this area started during the Ming Dynasty with increased activity in exploration and mining starting only in the 1970's.
ON BEHALF OF THE BOARD
Chairman & CEO
Gold World Resources Inc.
* Note: A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Securities Act (Alberta), including statements concerning Gold World Resources' plans for the Property, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gold World Resources, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.
The TSX-Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
SOURCE Gold World Resources Inc.
For further information: For further information: Hermann Derbuch, P.Eng., Tel.: (416) 594-9888, Fax: (416) 594-1967