| | Metallurgical lock cycle testing gives +90% copper recovery, excellent gold and silver credits with conventional flotation
August 29, 2006, Vancouver, BC - Gerald S. Panneton, President and CEO of Continental Minerals Corporation (TSX Venture: KMK; OTCBB: KMKCF) and Anthony Garson, President and CEO of Great China Mining Inc. (OTC.BB-GCHA), announce an update on metallurgical studies for the Xietongmen Copper-Gold Project. The Xietongmen property 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 60% of the parent company that holds 100% of the Xietongmen property. The companies are also progressing through the necessary requirements to merge, and unify 100% ownership of Xietongmen and surrounding exploration properties under Continental.
Drilling in 2005 has outlined a porphyry copper-gold deposit with significant mineral resources at Xietongmen. The deposit is characterized by continuous mineralization hosted, largely, by volcanic rocks adjacent to a quartz diorite intrusion. The mineralization demonstrates an overall vertical zonation that is common for deposit of this type. Three main zones are recognized: supergene or enriched (secondary) copper zone, transition or mixed zone, and hypogene or primary copper zone, with three sub-zones - upper, middle, and lower - within the primary copper zone, for a total of five mineralized zones.
The sampling program carried out in 2006 comprises the preparation of five overall composites representing the five mineralized zones and fifty-four variability composites to verify geological continuity and grade variability through out the deposit. Metallurgical testwork is being carried out at SGS Lakefield Research Limited's laboratory located in Lakefield, Ontario, under the supervision of independent consultants from Melis Engineering Ltd., and Aker Kvaerner E&C. Graham Holmes, P.Eng., of Aker Kvaerner is the independent qualified person for the program.
In the 2006 program, batch flotation tests are being carried out on all composite samples to determine the optimum flotation conditions and establish the mill flowsheet. This includes testing for the best grind size and reagents (including reagents readily available in China) to achieve the highest metal recoveries. Lock cycle tests using optimum flotation conditions have been completed on the overall composites representing the five zones of mineralization.
Excellent copper, gold and silver recoveries have been achieved on all the different mineralization types as summarized in the table below, with the slightly lower copper recovery on the supergene (less than 10% of the deposit) reflecting the presence of secondary copper minerals.
XIETONGMEN PROJECT
LOCK CYCLE TESTS - PROJECTED RECOVERIES TO 25% CONCENTRATE
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Calculated
Head Grade(i) Concentrate Grade Recovery in %
------------------ ----------------- ------------------
Mineral- % Au Ag % Au Ag
ization Cu g/t g/t Cu g/t g/t Cu Au Ag
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Supergene 0.59 0.40 2.62 25.0 12.6 94.6 86.5 64.0 73.8
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Transition 0.41 0.73 5.06 25.0 32.3 264 92.5 66.5 78.5
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Upper
Hypogene 0.59 0.90 5.62 25.0 27.9 210 93.5 68.0 82.0
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Middle
Hypogene 0.51 0.81 6.75 25.0 29.0 298 95.0 70.0 86.0
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Lower
Hypogene 0.44 0.69 4.98 25.0 29.9 257 92.8 70.5 84.0
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(i) Calculated head grade represents the grade of the samples tested.
Results show that the Xietongmen mineralization can be treated using a simple flotation flowsheet involving a 125 micron primary grind, rougher flotation at pH 10 using standard flotation reagents and a regrind of the rougher concentrate to 25 microns prior to cleaner flotation, without the need for sodium cyanide, to produce a 25% Cu concentrate containing, beside 25% Cu, 30 g Au/t (close to 1 oz/ton of gold) and 260 to 300 g Ag/t (approximately 8 to 10 oz/ton of silver).
President and CEO Gerald Panneton said:
"Excellent progress is being made on the metallurgical studies for Xietongmen. Work so far has demonstrated that a simple flowsheet using a conventional flotation process provides excellent recoveries of copper, gold and silver from the Xietongmen deposit. Of particular note is the substantial gold and silver that will be recovered from the deposit and report to the concentrate for smelting and refining, providing additional value from metal sales. This valuable by-product is expected to offset a significant part of the cost of the treatment of the concentrate."
A comprehensive program is underway in 2006 that encompasses extensive drilling, engineering, environmental and socioeconomic studies, and community and stakeholder engagement activities are underway. The objective is to collect the data necessary for a feasibility study and environmental and social impact assessments. The studies are targeted for completion in 2007.
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
Great China Mining Inc.
Tel: 604 641·1366
www.greatchinamining.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 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. |
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