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
DRILLING CONTINUES TO EXPAND XIETONGMEN COPPER-GOLD DEPOSIT
May 2, 2006, Vancouver, BC - Gerald S. Panneton, President and CEO of
Continental Minerals Corporation (TSX.V-KMK; OTC.BB-KMKCF), and Anthony Garson,
President and CEO of Great China Mining Inc. (OTC.BB-GCHA), announce the results
from the first nineteen (19) core holes drilled in 2006 at the Xietongmen
copper-gold deposit, located 240 kilometres west of Lhasa in Tibet, People's
Republic of China.
Drilling in 2005 showed the presence of a significant porphyry copper-gold
deposit, with excellent potential for expansion. The 2005 50-metre drill spacing
program demonstrated strong continuity to the copper and gold mineralization,
both laterally and vertically, over an average thickness of 200 metres. An
initial estimate of the mineral resources was released in early February.
The objectives of the 2006 program are to fully assess the resource potential of
the project and collect the necessary data for a feasibility study and
environmental and social impact assessments, targeted for completion in 2007.
Programs were initiated at site in February. Seven rigs are currently active in
the planned 22,000-metre program, testing the extensions of the Xietongmen
deposit. Excellent intervals of copper and gold continue to be intersected. Most
of the drilling done in 2006 has been along three sides of the deposit: north,
east and southeast. Two additional rigs will be added to complete the extensive
program.
In the east (section 3249000N), drill holes 6065, 6068, 6072 and 6080 have
extended the width of the deposit by 200 metres to the east. The best result is
in hole 6068 with a supergene intersection grading 1.56% copper equivalent
(CuEQ) over 8.6 metres, followed by an interval of 152 metres averaging 0.83%
CuEQ. On section 3249200N, hole 6079 intersected 220 metres averaging 0.91%
CuEQ, including a higher-grade section of 1.15% CuEQ over 152.2 metres.
In the north, holes 6070 and 6067 on section 3249300N, and holes 6082 and 6074
on section 3249350 have extended the deposit for another 100 metres to the
north, where the deposit remains open. The best intersection in the north is in
hole 6070 with an interval of 268 metres averaging 0.74% CuEQ.
In the southeast area, results from six holes were received on two sections,
3248900N and 3248850N. The best intersection was obtained in hole 6069 with an
interval of 88 metres averaging 0.83% CuEQ.
Results received for the first 19 holes are provided on the attached Table of
Assay Results. A Property Location Map, a Drill Hole Plan and Cross Sections are
posted on the websites: www.continentalminerals.com and
www.greatchinamining.com.
Continental and Great China Mining recently announced preliminary agreements
between Continental and certain principal Great China Mining shareholders,
whereby the companies will be merged to unify 100% ownership in the Xietongmen
property in Continental (see joint news release April 13, 2006). Completion of
the merger is subject to a number of conditions including the execution of
definitive merger documentation, and shareholders and regulatory approvals, and
is likely to complete in the third quarter of 2006.
The venture is committed to responsible development. Accordingly, an expanded
community engagement program is underway with the long term objective to ensure
that the project provides direct, tangible benefits for local residents and
communities. Hence, active dialogue with the local residents in the Tibetan
villages and the various authorities in the region will be ongoing in order that
the project proceeds in a manner that respects local socio-economic priorities
and incorporates a high standard of environmental management.
Mark Rebagliati, P.Eng., a Qualified Person as defined under National Instrument
43-101, is supervising the drilling program and quality assurance and quality
control ("QAQC") programs on behalf of Continental Minerals Corporation. The
program includes rigorous QAQC procedures. Acme Analytical Laboratories of
Vancouver, BC, an ISO 9001:2000 accredited laboratory, performs the sample
preparation and assaying for the project. Gold analysis is by 30 g Fire Assay
fusion with an Inductively Coupled Plasma-Emission Spectroscopy (ICP-ES) finish.
Copper assays are done by four acid digestion with an ICP-ES finish. Continental
includes standards, blanks and duplicates in addition to the laboratory's
internal quality control work.
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
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 the proposed merger, acquisition of additional property,
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.
XIETONGMEN PROJECT NEW ASSAY RESULTS
MAY 2, 2006
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
Drill Section From To Intercept Intercept Cu1 Au1 CuEQ2 AuEQ2
Hole (metres) (metres) (metres) (feet) % g/t % g/t
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6064 3248900N 51.0 176.0 125.0 410 0.33 0.43 0.55 1.04
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6065 3249000N 86.0 157.0 71.0 233 0.15 0.38 0.35 0.67
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6065 3249000N 157.0 303.0 146.0 479 0.44 0.99 0.97 1.83
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6066 3249275N 174.0 359.0 185.0 607 0.41 0.47 0.66 1.25
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6067 3249300N 156.0 385.0 229.0 751 0.35 0.35 0.53 1.01
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6068 3249000N 53.3 61.9 8.6 28 1.49 0.14 1.56 2.95
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6068 3249000N 137.0 289.0 152.0 499 0.42 0.77 0.83 1.57
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6069 3248850N 19.0 107.0 88.0 289 0.63 0.38 0.83 1.57
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6070 3249300N 115.0 383.0 268.0 879 0.45 0.54 0.74 1.39
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6071 3248850N 22.5 119.9 97.4 320 0.43 0.46 0.67 1.27
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6072 3249000N 134.0 195.0 61.0 200 0.27 0.72 0.65 1.22
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6073 3249350N 125.0 375.1 250.1 821 0.41 0.52 0.69 1.29
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6074 3249350N 224.0 247.1 23.1 76 0.27 0.84 0.72 1.35
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6075 3248900N 40.3 184.9 144.6 474 0.31 0.55 0.60 1.13
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6076 3248900N 94.0 194.8 100.8 331 0.23 0.44 0.47 0.88
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6077 Hole abandoned, redrilled as 6079
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6079 3249200N 112.2 332.2 220.0 722 0.52 0.75 0.91 1.72
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
including 180.0 332.2 152.2 499 0.64 0.96 1.15 2.16
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6080 3249000N 162.0 206.0 44.0 144 0.18 0.36 0.37 0.70
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6081 Hole abandoned, redrilled as 6090
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6082 3249350N 167.0 373.3 206.3 677 0.42 0.46 0.66 1.25
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
6089 3248850N 25.8 89.0 63.2 207 0.52 0.21 0.64 1.20
- ---------- ------------ ------------- ----------- ------------- -------------- -------- --------- --------- ---------
1 Copper capped at 5%, gold capped at 10 g/t for all calculations.
2 Copper and gold equivalent calculations use metal prices of US$1.10/lb for
copper and US$400/oz for gold. Adjustment factors to account for
differences in relative metallurgical recoveries for gold and copper will
depend upon the completion of definitive metallurgical testing. CuEQ = Cu %
+ (Au g/t x 12.86/24.2561) AuEQ = (Cu % x 24.2561/12.86) + Au g/t