(Expressed in United States dollars except where otherwise indicated)
Toronto, Canada. January 20, 2012: (TSXV:GMN) GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce assay results for the remaining 69 diamond drill holes received from its 92 holes diamond drilling program at the Sawayaerdun Gold Project. The results of the previous 23 holes were released on November 17, 2011.
Highlights of the current release include the following intersections from Zone IV: ZK0003 with an intersection width of 40.3 m of 1.99 g/t gold from a depth of 30.5 m; ZK1506 with an intersection width of 56.61 m of 1.70 g/t gold from a depth of 264.9 m; ZK2304 with an intersection width of 33.2 m of 2.32 g/t gold from a depth of 89.4 m; ZK3904 with an intersection width of 59.9 m of 2.08 g/t gold from a depth of 181.5 m; ZK4305 with an intersection width of 25.5 m of 2.63 g/t gold from a depth of 122.4 m; ZKWX-1 with an intersection width of 36.9 m of 3.87 g/t gold from surface.
Sawayaerdun Gold Project Update
The Company had completed its 92 diamond drill holes program at Sawayaerdun in the northwest of Xinjiang, China as scheduled during October 2011 for a total of 31,685.23 m. This drilling concentrated on in-filling and extending the main mineralized structure at Zone IV to improve the reliability of the previously announced NI 43-101 compliant resource estimate and increasing the resources. Another mineralised structure at Zone I approximately parallel and located 1,200 m to the east of Zone IV was also tested. All assay results from this drilling program have now been received.
The next drilling program at Sawayaerdun, to further infill and extend the drilling at Zone IV and to test other mineralized structures in the Company's tenements, is planned to commence in April 2012. Preparations in support of an updated resource estimate for Zone IV is well underway and this updated resource and an initial resource estimate for Zone I is expected during February 2012.
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. 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, which is sub-parallel and 1,200 m east of Zone IV, has shown that this mineralized structure continues over 3,200 m of strike length.
The most significant intersections, greater than 5.0 Gm*metres, from this batch of 69 drill holes, bulked at a lower cut-off of 0.5 grams/tonne gold are included in Table 1 below.
Table 1. Significant drill holes intersections received from the last 69 diamond drill holes from the 2011 drilling program
Hole ID
From
To
Metres
Approx Intersection Dip
Approx True Width(1)
Average g/t Au
Gm*m(2)
Zone
IZK0807
103.50
111.85
8.35
-73.80
3.69
1.60
5.91
I
IZK0820
251.00
259.60
8.60
-72.90
3.92
1.54
6.02
I
IZK2408
236.20
250.50
14.30
-75.50
5.93
1.16
6.89
I
ZK0003
30.50
70.80
40.30
-64.00
23.69
1.99
47.06
IV
ZK0304
528.70
537.70
9.00
-77.40
3.46
8.66
29.96
IV
ZK0307
92.70
115.20
22.50
-56.10
15.60
1.48
23.17
IV
ZK0307
130.10
138.55
8.45
-55.80
5.89
1.19
6.98
IV
ZK0309
186.40
232.90
46.50
-79.70
16.13
2.10
33.90
IV
ZK0703
71.30
82.60
11.30
-80.70
3.73
1.70
6.36
IV
ZK0703
95.60
117.70
22.10
-80.70
7.30
1.17
8.52
IV
ZK0703
138.20
141.20
3.00
-80.60
1.00
5.70
5.68
IV
ZK0706
128.50
162.40
33.90
-66.50
18.71
1.63
30.59
IV
ZK0707
193.45
204.45
11.00
-72.90
5.01
1.13
5.65
IV
ZK0707
212.45
223.45
11.00
-72.90
5.01
1.21
6.05
IV
ZK0707
334.45
342.45
8.00
-71.40
3.83
1.74
6.65
IV
ZK10001
219.73
267.20
47.47
-75.20
19.91
1.52
30.32
IV
ZK10805
318.86
341.50
22.64
-71.60
10.77
1.54
16.55
IV
ZK1104
120.80
152.50
31.70
-72.10
14.83
1.08
15.95
IV
ZK1117
561.40
576.40
15.00
-76.80
5.91
1.38
8.18
IV
ZK11602
275.60
319.80
44.20
-71.10
21.36
1.28
27.26
IV
ZK11603
358.53
417.93
59.40
-75.50
24.63
1.09
26.94
IV
ZK1504
94.70
111.60
16.90
-84.50
4.52
4.43
20.01
IV
ZK1504
140.50
193.70
53.20
-83.40
15.20
1.73
26.25
IV
ZK1504
204.70
213.70
9.00
-82.90
2.65
3.20
8.47
IV
ZK1504
220.70
268.60
47.90
-82.90
14.08
2.67
37.54
IV
ZK1506
236.24
240.90
4.66
-71.60
2.22
2.40
5.33
IV
ZK1506
264.90
321.51
56.61
-70.50
27.88
1.70
47.45
IV
ZK1601
62.55
72.55
10.00
-68.00
5.30
1.27
6.74
IV
ZK1902
63.20
81.50
18.30
-64.50
10.63
3.16
33.58
IV
ZK1902
83.50
92.50
9.00
-63.70
5.33
0.94
5.01
IV
ZK1902
113.80
140.50
26.70
-63.70
15.81
0.95
15.05
IV
ZK2302
54.60
64.45
9.85
-54.20
7.06
0.75
5.28
IV
ZK2302
71.45
99.25
27.80
-54.20
19.93
1.82
36.34
IV
ZK2304
35.80
73.40
37.60
-65.50
21.30
1.15
24.41
IV
ZK2304
89.40
122.60
33.20
-64.20
19.42
2.32
45.08
IV
ZK3101
41.70
75.80
34.10
-71.20
16.43
2.26
37.18
IV
ZK3102
45.90
73.90
28.00
-89.70
5.01
2.61
13.05
IV
ZK3102
172.40
212.00
39.60
-88.00
8.23
1.91
15.72
IV
ZK3107
132.00
147.00
15.00
-68.10
7.93
1.32
10.45
IV
ZK3107
167.00
182.00
15.00
-67.50
8.06
1.30
10.48
IV
ZK3107
203.80
219.80
16.00
-67.50
8.60
2.11
18.14
IV
ZK3507
129.00
155.50
26.50
-79.80
9.15
1.24
11.36
IV
ZK3509
167.50
193.50
26.00
-74.70
11.11
1.81
20.16
IV
ZK3601
231.74
254.74
23.00
-82.90
6.76
1.08
7.34
IV
ZK3602
380.14
413.55
33.41
-83.20
9.66
1.47
14.17
IV
ZK3902
95.40
111.40
16.00
-78.00
5.99
2.77
16.61
IV
ZK3904
104.10
135.10
31.00
-68.70
16.11
1.80
28.97
IV
ZK3904
146.00
163.40
17.40
-67.80
9.27
1.83
17.01
IV
ZK3907
157.50
171.50
14.00
-79.20
4.97
1.14
5.66
IV
ZK3907
181.50
241.40
59.90
-78.30
22.15
2.08
46.00
IV
ZK4305
122.40
147.90
25.50
-60.10
16.36
2.63
43.02
IV
ZK4306
167.60
173.60
6.00
-70.10
2.99
3.37
10.09
IV
ZK4310
243.90
261.79
17.89
-67.60
9.59
1.56
14.98
IV
ZK4705
204.80
219.12
14.32
-72.10
6.70
0.96
6.40
IV
ZK5107
267.00
278.00
11.00
-74.00
4.82
3.06
14.74
IV
ZK6703
402.41
416.37
13.96
-79.70
4.84
1.06
5.12
IV
ZK7503
215.79
242.85
27.06
-79.20
9.61
1.92
18.49
IV
ZK7504
358.40
384.90
26.50
-78.20
9.84
0.92
9.02
IV
ZK8301
184.00
196.20
12.20
-72.20
5.69
0.94
5.33
IV
ZK8305
367.00
384.00
17.00
-78.50
6.23
1.91
11.90
IV
ZK8305
390.00
420.70
30.70
-77.90
11.55
1.18
13.64
IV
ZK8402
461.64
481.60
19.96
-72.50
9.22
1.16
10.71
IV
ZK9201
171.84
182.40
10.56
-72.80
4.83
1.50
7.24
IV
ZKWX-1
0.00
36.90
36.90
-84.50
9.86
3.87
38.13
IV
ZKWX-2
6.00
39.90
33.90
-79.60
11.82
1.93
22.82
IV
Total
1,537.79
Length Weighted Average
1.82
23.71
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)
Zone
ZK0003
34.80
35.80
1.00
-64.00
0.59
10.94
6.43
IV
ZK0304
533.90
534.90
1.00
-85.00
0.26
63.88
16.53
IV
ZK0703
140.20
141.20
1.00
-81.00
0.33
15.92
5.18
IV
ZK1504
106.60
107.60
1.00
-86.00
0.24
11.80
2.85
IV
ZK1504
101.70
102.60
0.90
-86.00
0.22
10.84
2.36
IV
ZK1504
206.70
207.70
1.00
-86.00
0.24
10.06
2.43
IV
ZKWX-1
19.00
20.00
1.00
-85.00
0.26
13.71
3.55
IV
ZKWX-1
24.00
25.00
1.00
-85.00
0.26
11.22
2.90
IV
ZKWX-1
25.00
26.00
1.00
-85.00
0.26
11.20
2.90
IV
Notes: (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 confirm the earlier resource estimates and extend these resources both at depth and along strike. The maps at the end of this press release show the location of these holes relative to the previous holes.
Sampling Methodology, Quality Control and Assurance
The drill 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 after roasting technique.
A program of QA/QC sampling and assays was instituted by the Company's geological staff to determine the quality of all the current and previous assay results obtained to date. This QA/QC program involved re-assaying 40 representative pulp samples, collected from the Urumqi laboratory from drilling completed over the last two years, at Genalysis Laboratory Services ("Genalysis"), an independent laboratory in Perth, Australia. The correlation coefficient for the laboratory in Urumqi versus Genalysis fire assays was 0.9900. This high value indicates that the Urumqi analyses correspond extremely well with the fire assays at Genalysis.
The Xinjiang Geology Bureau laboratory included 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.
Discussion of the drilling results
The in-fill drilling results confirm that the gold mineralization is continuous along strike in the previously drilled Zone IV and also at the newly pattern drilled Zone I.
The latest drilling from the 2011 drilling program will be used estimate new resources along strike and at depth in Zone IV and initial resources at Zone I and allow conversion of some of the previous resource estimates at Zone IV to higher categories. It is expected that these new resource estimates will be completed during February 2012.
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 resource was estimated to contain Indicated resources of 34 million tonnes with an average grade of 1.3 grams/tonne gold and an additional Inferred Resources of 13.5 million tonnes with an average grade of 1.0 grams/tonne gold. No estimate was made of any Zone I resources.
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.
About GobiMin
As at December 31, 2011, GobiMin had approximately USD 62.7 million (CAD 63.8 million) in cash and cash equivalent, which represents approximately USD1.00 (CAD 1.02) per share based on the total issued capital of 62,596,296 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.
Map 1 Location and geology map showing the 2011 drilling with collars shown as green points, previously reported drill holes shown without coloured points.
map 2 Latest 2011 drilling only with intervals >0.5g/t Au shown in red -- Legend as for Map 1.
For further information, please contact:
Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500
Email: www.gobimin.com
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.
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