Wed Jan 24, 2007 2006 Drilling Expands Xietongmen Copper-Gold Resource By 50%
Measured and Indicated Resources of 219.8 Mt grading 0.78% CuEQ
January 24, 2007, Vancouver, BC -- Continental Minerals Corporation ("Continental" or the "Corporation") (TSX Venture: KMK; OTCBB: KMKCF) announces that drilling in 2006 resulted in a 50% expansion to the estimated mineral resources for the Xietongmen copper-gold deposit. All of those resources are in measured and indicated categories that can be included in pit design for the current feasibility studies.
The Xietongmen property is located 240 kilometers from the city of Lhasa in Tibet, People's Republic of China. Continental holds 100% ownership of the Xietongmen Project.
The Xietongmen deposit was discovered by drilling in 2005. The 2006 delineation program both expanded the deposit and confirmed the continuity of the mineralization, outlining a substantial resource with high copper and gold grades that is still open to the north and northwest. Xietongmen mineral resources, estimated at a 0.15% copper cut-off grade, are tabulated below:
XIETONGMEN DEPOSIT MINERAL RESOURCES
Category
Tonnes Millions
Cu %
Au g/t
Ag g/t
CuEQ %
Contained Cu Millions lb
Contained Au Millions oz
Measured
197.5
0.44
0.62
3.95
0.80
1,911
3.94
Indicated
22.3
0.37
0.42
2.54
0.65
182
0.37
Total
219.8
0.43
0.61
3.87
0.78
2,092
4.31
Note 1: By prescribed definition, "Mineral Resources" do not have demonstrated economic viability.
Note 2: Copper and gold equivalent calculations use metal prices of US$1.25/lb for copper and US$450/oz for gold. Adjustment factors to account for differences in relative metallurgical recoveries for gold and copper will depend upon completion of definitive metallurgical testing. Metallurgical recoveries and net smelter returns are assumed to be 100%.
CuEQ = Cu % + (Au g/t x 12.86/22.046)
Note 3: A 0.15% Cu cut-off is considered to be comparable to that used for porphyry deposit operations in the Americas.
The resource estimate is based on drill core assay results from 200 vertical holes (47,000 meters) drilled at a 50-meter spacing over an area of approximately 1200 meters northwest-southeast by 600 meters northeast-southwest. The maximum thickness of the mineralized interval is 300 meters and averages 180 meters. There is strong continuity to the mineralization both laterally and vertically within the deposit. Property Location and Plan maps of the Xietongmen deposit are available for viewing on the Company's website: www.continentalminerals.com.
The estimate was prepared by Continental staff and audited by Ian Chisholm, P.Eng., of Aker Kvaerner Engineering, an independent Qualified Person as defined by Canadian National Instrument 43-101. The resource was estimated using ordinary kriging, employing a cut of top values to 5 g/t for gold and 2.0% for copper. A technical report on the resource estimate will be filed on www.sedar.com within 45 days.
Work continues toward completion of the Feasibility Study for the Xietongmen Project. The full report is now scheduled for completion in the second quarter of 2007.
Plans for the 2007 drilling program are currently being finalized. Exploration drilling in 2006 approximately 3 kilometers north of the Xietongmen deposit resulted in the discovery of the Newtongmen zone. For example, drilling in 2006 in Hole 6213N at Newtongmen intersected 302.2 meters grading 0.82% copper equivalent (CuEQ, 0.57% Cu, 0.48 g/t Au), including an 85.0-meter interval of 1.25% CuEQ (0.82% Cu, 0.82 g/t Au) and a 43.0-meter interval grading 1.39% CuEQ (0.96% Cu, 0.82 g/t Au). Other prospective targets have also been identified. Drilling is scheduled to begin in the second quarter of 2007.
Continental's drilling programs include rigorous quality assurance/quality control 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.
Gerald Panneton President & CEO
Continental Minerals Corporation
For further information:
Continental Minerals Corporation
Tel: 604 684∙6365
Toll Free 1 800 667∙2114 www.continentalminerals.com
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