Continental Minerals Corporation Great China Mining Inc.
1020 - 800 West Pender Street (formerly China NetTV Holdings Inc.)
Vancouver, BC World Trade Centre
Canada V6C 2V6 Suite 536-999 Canada Place
Tel 604 684 6365 Vancouver, BC V6C 3E2
Fax 604 684 8092 Tel 604 641 1366
Toll Free 1 800 667 2114 Fax 604 641 1377
www.continentalminerals.com www.greatchinamining.com
- ----------------------------------------------------------------------------------------------------------------------
XIETONGMEN PROJECT UPDATE
Results of Preliminary Engineering Studies
March 28, 2006, Vancouver, BC - Gerald S. Panneton, President and CEO of
Continental Minerals Ltd. (TSX Venture: KMK; OTCBB: KMKCF) and Anthony Garson,
President and CEO of Great China Mining Inc. (OTC.BB-GCHA), announce results of
preliminary engineering studies that have been underway for the past six months
on the Xietongmen Copper-Gold Project. The Xietongmen Project is located 240
kilometres from the city of Lhasa in Tibet, People's Republic of China.
Continental is the operator of the project, and owns 50% of the parent holding
company that owns 100% of the Xietongmen Project. Continental expects to
complete the expenditures required to earn an additional 10% (for a combined
60%) interest by April 2006.
Drilling in 2005 outlined significant mineral resources in a porphyry
copper-gold deposit. As the Xietongmen deposit is open, there is excellent
potential for expansion. Building on that success, a comprehensive program has
commenced in 2006. This program encompasses extensive drilling designed to fully
assess the resource potential of the property (seven rigs are currently active),
expanded technical studies and community and stakeholder engagement activities.
The objectives are to collect the data necessary for a feasibility study and
environmental and social impact assessments. The studies are targeted for
completion in 2007.
Preliminary engineering work, including a site review, assessment of available
infrastructure and initial metallurgical testwork began in October 2005. These
scoping-level studies have assisted in planning the 2006-2007 programs. Work has
been carried out by external consultants at Wardrop Engineering Inc. and
in-house technical staff of Hunter Dickinson Inc., and includes:
Hunter Dickinson:
o Planning and supervision of exploration programs, including quality
assurance and quality control programs.
o Collection of initial metallurgical samples.
o Compilation of drill hole and analytical data, development of
geological model and preparation of initial resource estimate.
o Review of Wardrop's preliminary pit layouts.
Wardrop:
o A property visit and review of available off-site infrastructure.
o Project site layout, planning an initial site facilities and open pit
layouts.
o Preliminary metallurgical testwork.
o Audit of the resource estimate announced February 8, 2006, including a
review of drill hole, and analytical and geological data.
o Independent collection and analysis of a selection of drill core
samples to assist in the verification of the results of the resource
estimate.
Infrastructure
The Xietongmen project is well located for development. A paved highway and
hydro-generated electric transmission lines pass near the southern end of the
property. The highway provides direct access to the city of Rikaze (population
100,000), approximately 53 kilometres to the east, where fuel, food, lodging and
office facilities are available. In addition, a cement plant is located on the
2
highway into Rikaze, some 40 kilometres from the Project site. Other supplies,
heavy equipment, equipment operators and vehicles are readily obtainable also in
Rikaze or in Lhasa, a drive of less than four hours from Rikaze. A railway was
completed to Lhasa in late 2005, which connects to multiple copper smelters and
other industrial centres located throughout China. Construction of a railway
extension from Lhasa to Rikaze has also been initiated by the Chinese
government, with expected completion in 2010.
Metallurgy
Initial tests were performed, under the supervision of Wardrop metallurgist John
Huang, Ph.D., on five different mineralization samples from the Xietongmen
deposit to provide a preliminary understanding of the potential processing
methods and results. Analysis and testing took place at the Process Research
Associates Ltd. (PRA) facilities in Vancouver, British Columbia. The results
were reviewed for Wardrop by Richard May, P. Eng.
The Xietongmen porphyry copper-gold deposit is comprised of continuous
mineralization hosted largely by volcanic rocks. Mineralization is broken down
into three zones: oxide, supergene (enriched copper) and hypogene (primary
copper) with average thicknesses of 20 metres, 40 metres and +200 metres,
respectively. Three samples were taken from the hypogene zone - lower, middle
and upper - and one each from the supergene and oxide zones in the deposit.
Copper head grade assays gave an average of 0.56% copper for the hypogene
samples; 1.50% for the supergene sample; and 0.17% for the oxide sample. Gold
contents range from 1.0 g/t for the lower hypogene sample to 0.7 g/t for the
oxide sample.
Results of metallurgical scoping tests are encouraging, showing that both the
hypogene and supergene can be floated at relatively coarse primary grinds (80%
passing 150 microns). On average, rougher flotation at that size recovered 93.4%
copper and 82.7% gold from the hypogene composite and 90.6% copper and 75.4%
gold from the supergene sample. Further optimization is required on the
supergene sample. It is anticipated that the grades of the flotation
concentrates are likely to reach 25% copper, or better. Initial Bond ball mill
tests for samples from the supergene and hypogene gave work indices of 12.1 and
14.6 kilowatt-hour/tonne, respectively. Additional work is required to fully
assess gold recovery. A systematic program of metallurgical sampling to evaluate
the deposit in greater detail was initiated in February. A total of 74 composite
samples are currently being collected.
Resource and Open Pit Model
Results of the audited resource estimate were announced on February 8, 2006 and
a technical report has recently been filed on www.sedar.com. A preliminary pit
design was developed by Wardrop in late 2005 and this was updated by qualified
person P. Beaudoin, P.Eng., based on the subsequent March 2006 resource model.
It is anticipated that the deposit will have a low strip ratio of between
1.25-2.0 tonnes of non-mineralized for 1.0 tonne of mineralized rock.
Gerald Panneton
President & CEO
Continental Minerals Corporation
For further information:
Continental Minerals Corporation Great China Mining Inc.
Tel: 604 684 6365 Tel: 604 641 1366
Toll Free 1 800 667 2114 www.greatchinamining.com
www.continentalminerals.com
3
No regulatory authority has approved or disapproved the
information contained in this news release.
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the companies expect are
forward-looking statements. Although the companies believe the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploitation and
exploration successes, and continued availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements.
For more information on Continental Minerals Corporation, Investors should
review the Company's annual Form 20-F filing with the United States Securities
Commission at www.sec.gov and its home jurisdiction filings that are available
at www.sedar.com.
For more information on Great China Mining Inc., Investors should review the
Company's annual Form with the United States Securities Commission at
www.sec.gov.