Toronto, Canada. March 21, 2011 - Further to the press release on October 18, 2010 regarding the updates on the Sawayaerdun Gold Project (the "Project"), GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce that it has just received a NI 43-101 compliant Mineral Resource Estimate from Wardrop a Tetra Tech Company ("Wardrop") for the gold resources contained in the Zone IV within the Project. The estimate was prepared with an effective date of October 1, 2010.
The Project is owned by Xinjiang Tongyuan Minerals Ltd. in which GobiMin holds an indirect equity interest of 70% and is located in the southern Tian Shan Mountains about 200 kilometers northwest of the city of Kashi. Topography is moderate to steep with elevations between 3,100 and 4,000 meters above sea level.
The current NI 43-101 compliant resource estimate of the Zone IV of the Project is based upon all current and historical assay data. At a lower grade threshold of 0.5 grams/tonne gold, the Zone IV is 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.
Mineral Resources Estimate--the Zone IV of the Sawayaerdun Gold Project
1 Troy Ounce = 31.10348 grams
NOTE: Numbers of tonnes and ounces have been rounded
Sawayaerdun Zone IV Block Model Resource Classification
Mr. Greg Mosher, P.Geo. a Senior Geologist with Wardrop is the Qualified Person for this release as defined under NI 43-101 and has reviewed and approved this press release. A copy of the Technical Report will be available on SEDAR (www.sedar.com) and the website of the Company ((www.gobimin.com) within 45 days of this press release.
The Company drilled 33 holes (6,700 aggregate meters) in the Zone IV, mostly in the northeastern portion of the Zone IV which, on the basis of earlier drilling, is where the Zone is widest. Holes were drilled to the southeast, perpendicular to strike and generally at 60-meter intervals along the strike of the Zone IV and generally two or three holes were drilled on each section so as to intersect the Zone IV at progressively greater depths down-dip. The dip of the holes ranged from 60º to 90º; most were drilled at dips between 75º and 85º. Holes were surveyed at 50-meter intervals as well as at the pierce points of the Zone. The holes penetrated the Zone IV at a range of oblique angles so that the intercept thickness is in all cases greater than the true thickness. However, the relatively large number of drill holes intercepts through the Zone IV permits a good understanding of its morphology and the relationship between true and apparent thickness can be clearly demonstrated.
Sawayaerdun Zone IV Cross-section showing drill holes and block model
A total of 2,673 samples were collected from the core drilled in 2010. As the gold mineralization is contained within a fault Zone, much of the core is fractured. However, recovery was high and Wardrop considers it improbable that any significant sample bias would have been introduced by loss of fine-grained material or other circumstance introduced by the fractured nature of the core. The resultant assays are considered representative of the mineralization that was tested.
Wardrop considers the sampling, sample preparation, security and analytical procedures to be adequate for the purpose of the resource estimate.
As at September 30, 2010, GobiMin had approximately USD47 million in cash and cash equivalent (approximately USD0.69 per share based on the total issued capital of 67,443,202 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 has four other joint ventures on base metal projects in Xinjiang, 8% equity interest in the Yanxi Copper Deposit and 24.49% indirect equity interest in Balikun Coal Project in Xinjiang.
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. You 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 reader 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 the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release."
To receive GobiMin press releases by email, please send a message to and specify "GobiMin press releases" on the subject line.
You can view the Next News Releases item: Tue Apr 19, 2011, GobiMin Announces Results of 2010
You can view the Previous News Releases item: Mon Jan 31, 2011, GobiMin signs Supplemental Agreement regarding the Balikun Coal Project in Xinjiang, China
You can return to the main News Releases page, or press the Back button on your browser.