note: remember that MIC and AUC will combine on a 1:5.55 ratio. SHould get through by June
TORONTO, May 2, 2006 (Canada NewsWire via COMTEX News Network) -- Golden China Resources Corporation (TSX.V: AUC) ("Golden China" or the "Company") is pleased to report the resumption of the resource delineation programme at its Beyinhar gold deposit, Inner Mongolia, PRC and receipt of encouraging results from the preliminary metallurgical testwork conducted on representative composite drillhole samples. The Company plans on completing a Canadian National Instrument 43-101 compliant independent mineral resource estimate for Beyinhar by September 2006. Based upon these results and encouraging gold recovery from the metallurgical testwork programme, Golden China will consider preparation of a Preliminary Feasibility Study on the Beyinhar deposit to commence in early 2007.
In April 2006 Golden China resumed exploration at its highly prospective Beyinhar gold property in Inner Mongolia, with the arrival on site of 2 diamond drill rigs. The Company is embarking on a 9,000 metre resource delineation drill programme on the project with the objective of establishing an initial resource estimate for the gold mineralization. The Beyinhar gold deposit is highly oxidised, occurs near-surface and is hosted in the at least 100 metre wide highly productive NE-trending Beyinhar shear zone. The current resource drilling programme will be completed by July 2006 and the initial resource estimate is planned to be completed by September 2006.
Golden China's 2005 exploration programme at Beyinhar (please see previous press releases on Beyinhar) included detailed mapping, trenching, an expanded detailed soil geochemical survey and a high-resolution IP survey. The 2005 programme included 4,829 metres of drilling. The positive results from this programme identified two adjacent areas for potential resource definition drilling in early 2006.
At the Beyinhar North area, both the 2004 and the 2005 drilling delineated a geologically continuous gold deposit, at least 320 metres long with up to 32 metres wide gold mineralization. This deposit hosts high-grade shoots, with drill intervals of up to 16 metres and grades of up to 29.7 grams per tonne of gold.
Gold mineralization continues immediately southwest of the Beyinhar North area, with the widely spaced drilling consistently encountering low grade, near-surface wide zones of gold mineralization. The gold mineralization occurs along the contact zone of the Proterozoic quartzite rocks with the Cretaceous rhyolite dome; the contact zone coincides with the productive NE-trending Beyinhar Shear. This gold zone is at least 500 metres long and open to the southwest and at depth, with mineralized drillhole widths up to 56 metres.
To see the chart "Definition Drilling at the Beyinhar Gold Deposit", please click the following URL : http://files.newswire.ca/357/china050206.doc
In addition, in March 2006 two bulk metallurgical samples from Beyinhar were sent to SGS Lakefield and Oretest metallurgical laboratories in Perth, Western Australia for metallurgical testwork. The first sample from the higher grade core of the deposit achieved 77% gold recovery from direct cyanidation, based on just crushed ore samples. The second sample from the lower grade halo of the deposit achieved 81% gold recovery from direct cyanidation, based on just crushed ore samples.
With the completion of the mineral resource estimate in September and the encouraging gold recovery from the initial metallurgical testwork programme, Golden China will consider preparation of a Preliminary Feasibility Study on the Beyinhar project to commence in early 2007. Golden China views this area as having high potential for resource definition and development. With well developed infrastructure, including an excellent road system and power supply, Beyinhar has potential for a seasonal low cost heap leach operation
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