| ||October 16, 2006|
GobiMin Inc. Reports First Test Production From Mill In Tibet
| ||Toronto, Canada , October 16, 2006 -- (TSX-V: GMN) GobiMin Inc. is pleased to report that test production has commenced at the mill built by the Company's partner, Tibet Dazi PuXiong Copper Company Limited ("PuXiong"). GobiMin acquired a 30% equity interest in PuXiong in May 2006 through its 97% owned Chinese subsidiary. In addition to the mill, PuXiong owns the exploration license of the Malonglang copper-zinc project located in Dazi County (as described in the Company's news release on May 29, 2006).|
The construction of the mill was completed in May 2006. It is located approximately eight kilometres from the Malonglang copper-zinc project site. Although this project is still at an exploration stage, PuXiong, with this newly-built mill being the only one in the Dazi area, has reached agreements with other operating mines to have ore trucked in and custom milled, which should bring the mill to 100% capacity.
During the three-week period of test production ending on October 13, 2006, the mill processed approximately 8,200 tonnes of copper ore with a head grade averaging 0.90%. Total copper concentrate produced was 282 tonnes at a grade level of 23%. The recovery rate achieved from this testing was 86%.
After complete testing of the concentration process and equipment, the mill is expected to reach its full capacity of 500 tonnes per day, by the end of this year.
This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about mill capacity and recovery rates are examples of forward-looking statements..Rreaders should not place undue reliance on forward-looking statements.
For further information, please contact:
James Xiang, Chief Financial Officer, GobiMin Inc.
Tel: (416) 915-0133
Linda Armstrong, Vice President, CHF Investor Relations
Tel: (416) 868-1079, Ext 229
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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