| ||October 10, 2008|
GobiMin Announces Initial Resource Estimate for Yanxi Copper Deposit
Toronto, Canada. October 10, 2008 - GobiMin Inc. ("GobiMin" or the 'Company") is pleased to announce the results of an independent initial mineral resource estimate for the Yanxi Copper Property located about 115 km south of the city of Hami in the eastern Xinjiang Uygur Autonomous Region, China.
The porphyry copper-type Yanxi deposit lies within an east-west belt of porphyry copper deposits that includes the Tuwu and Yandong deposits. Mineralization is hosted in an eastwest striking irregular dike-like body of porphyritic granitic rocks that varies in thickness up to about 200 m thick. The granitic rocks lie within a sequence of Carboniferous age clastic, volcaniclastic and volcanic rocks. Testing to date has outlined a deposit about 1,000 m long, about 700 m down dip and up to 80 m thick. The deposit dips south at about 70 degrees.
Based on 31 diamond drill holes, Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") made an estimate of the metal content in the table below:
Mineral Resources - Yanxi Copper Deposit
1. CIM definitions were followed for Mineral Resources.
2. Mineral resources which are not Mineral reserves have not demonstrated economic viability.
3. Mineral Resources are estimated at cutoff grades of 0.5% Cu.
4. Mineral Resources are estimated using an average long-term copper price of US$2.50/lb, and a US$/C$ exchange rate 1.04.
5. A minimum mining width of 5 metres was used.
At this time, there are no known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues that may materially affect this mineral resource.
GobiMin owns 40% interest of the Yanxi Copper Property while two local partners each holds a 30% interest.
Scott Wilson RPA has prepared an initial mineral resource estimate for the Yanxi Copper Property. Thirty-one diamond drill holes have been completed on the property and 25 holes tested the mineralization included within the model. The deposit was modeled using Gemcom Software. A mineral envelope grade of 0.3% copper was used. A block model was developed and grades were interpolated using inverse distance squared methodologies. The assay database was examined for outlier values and no cutting of abnormally high values was deemed to be necessary. The estimate was prepared with an effective date of September 10, 2008.
Mr. Neil N. Gow, P.Geo. an Associate Consulting geologist with Scott Wilson RPA is the Qualified Person for this release as defined under NI 43-101 and has reviewed and approved this press release.
Resource Definitions Used
The CIM classification of an Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from location such as outcrops, trenches, pits, working and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. An Indicated Mineral Resource estimate is of sufficient quality to support a Preliminary Feasibility Study which can serve as the basis for major development decisions. An Inferred Mineral Resource has a lower level of confidence than an Indicated Mineral Resource for which quantity and grade or quality, based on geological evidence can be reasonably assumed.
GobiMin is a junior mining company with nickel/copper sulphide operations and development properties in northwestern China. Through its subsidiaries, xinjiang Yakesi Resources Co. Ltd. and Hami Jubao Resources Co. Ltd., GobiMin controls three concessions, within a 10-kilometre radius, totaling 455 hectares. In operation since 1999, GobiMin currently operates two underground mines (Yellow Mountain East and Xiangshan) and is also currently developing its Yellow Mountain nickel/copper deposit.
FORWARD-LOOKING STATEMENTS AND RISK FACTORS
The 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. These risks include, but are not limited to, those associated with our capacity to finance our activities, the price of minerals and other
commodities, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to-time in our filings with the Canadian securities commissions.
Readers should not place undue reliance on forward-looking statements, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forwardlooking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the Company's annual report and other documents filed from time to time with the Canadian securities commissions and which are available at www.sedar.com.
For further information, please contact:
James Xiang, Chief Financial Officer, GobiMin Inc.
Tel: (416) 915-0133
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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