Chinese Government Approval of Key Power Project Provides Support to Continental's Xietongmen Project
David Copeland, President and CEO of Continental, commented "The approval of this significant infrastructure project is great news for Continental and its shareholders. The remarkable pace of infrastructure development in China is truly overwhelming. As a government-approved project it gives us great confidence that uninterrupted power will be available for a mine on the Xietongmen property. Continental is committed to the responsible development of the Xietongmen project to bring benefits to stakeholders, respect environmental concerns and offer employment and economic opportunities to those in the region."
Continental is advancing the 100% owned Xietongmen copper-gold project located 250 km west of Lhasa near Rikaze in the Tibet Autonomous Region of the People's Republic of China. Continental completed a positive feasibility study in 2007 and is currently advancing the mining license permitting, engineering and procurement aspects of the project. Dependent on permitting and financing, Continental could begin construction of the Xietongmen project as early as the first quarter of 2011.
For additional details on Continental, please visit the Company's website at www.continentalminerals.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
David J. Copeland
President & CEO
Continental Announces Board Change
For additional details on Continental and the Xietongmen Copper-Gold Project, please visit the Company's website at www.continentalminerals.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
David Copeland
President & CEO
Continental Completes $25 Million Financing
Proceeds shall principally be used for engineering and development of the Xietongmen Project in China and for general corporate purposes. A commission within regulatory guidelines was paid on the financing.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
Continental President and CEO David Copeland commented, "We are pleased to complete this financing, which brings the Company closer to its goal of building a modern, well-engineered copper-gold mine that integrates international standards and contributes positively to the economic development of the region."
For additional details on Continental and the Xietongmen Copper-Gold Project, please visit the Company's website at www.continentalminerals.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114. On behalf of the Board of Directors
David Copeland
President & CEO
Continental Announces Private Placement To Raise $25 Million
Pursuant to the Agreement, Zijin Mining has agreed to purchase 21,121,495 common shares of the Company (the "Shares"), at a price of C$1.07 per Share, for gross proceeds to Continental of C$22,599,999.65. The balance of the Offering has been subscribed for by other non-related parties. A commission equal to 6% of the proceeds from the Offering is payable.
Zijin Mining will be entitled to appoint one director to the board of directors of the Company. Zijin Mining has also agreed to provide additional key support to the Xietongmen Project, including assistance in obtaining all permits, approvals and licenses required for development and operation of the Xietongmen mine and to assist the Company in maintaining good relationships with appropriate departments of the central government of the People's Republic of China and the provincial level government of the Tibet Autonomous Region.
The Offering is subject to approval by the board of directors of the Company and the receipt of all regulatory approvals, including from the TSX Venture Exchange. The Shares issued pursuant to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws. The Shares issued to Zijin Mining will also be subject to a voluntary pooling agreement between Zijin Mining and the Company.
The proceeds of the Offering shall principally be used for engineering and development of the Xietongmen Project in China and for general corporate purposes.
Zijin Mining is a leading Chinese mining group engaged in the exploration, mining and refining of gold and base metals at its mines in China and internationally. Zijin Mining is China's largest gold producer and third largest copper producer. The shares of Zijin Mining are listed on the Hong Kong and Shanghai stock exchanges.
Zijin Mining Chairman Chen Jinghe said "We see the investment in Continental as an opportunity to aggressively expand our footprint in China by investing in a robust project in the final permitting stage."
Continental President and CEO Dave Copeland said "Zijin Mining is a highly respected entrepreneurial mining group and the introduction of Zijin Mining will allow us to aggressively advance the permitting and development of the Xietongmen Project. Our goal is to build an economically robust project that integrates high standards of environmental performance and brings real benefits to the region. Continental and the Xietongmen Project are in a unique position at an opportune time to take advantage of China's tremendous need for copper materials, development projects and investment opportunities within its economy."
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
For additional details, please visit the Company's website at www.continentalminerals.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
David Copeland
President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this 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 exploration drilling, exploitation activities and other related events or developments are forward-looking statements. Although the company believes 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, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, geopolitical uncertainty and political and economic instability, changes in government policies regarding mining and natural resource exploration and exploitation, the risk that the above-referenced merger transaction may not be completed within the time frame contemplated or at all 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 and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.
Continental: Initial Estimate Shows Substantial Resources In Continental's Newtongmen Copper-Gold Deposit
Newtongmen was discovered by exploration drilling in 2006. Delineation drilling has confirmed the presence of a substantial porphyry copper-gold deposit and apparent strong continuity to the mineralization. The deposit remains open to expansion in three lateral directions and at depth. Results from the resource estimate are tabulated below:
Category |
Cut-off |
Tonnes |
Cu |
Au |
Ag |
Contained Cu |
Contained Au |
Contained Ag |
Indicated |
0.30 |
186.5 |
0.40 |
0.22 |
0.99 |
1.66 |
1.30 |
5.90 |
0.20 |
388.9 |
0.32 |
0.18 |
0.87 |
2.77 |
2.30 |
10.85 |
|
0.15 |
486.0 |
0.29 |
0.17 |
0.82 |
3.15 |
2.70 |
12.80 |
Category |
Cut-off |
Tonnes |
Cu |
Au |
Ag |
Contained Cu |
Contained Au |
Contained Ag |
Inferred |
0.30 |
84.4 |
0.37 |
0.06 |
0.13 |
0.68 |
0.17 |
0.36 |
0.20 |
264.8 |
0.29 |
0.07 |
0.12 |
1.67 |
0.57 |
1.04 |
|
0.15 |
379.3 |
0.25 |
0.07 |
0.12 |
2.11 |
0.80 |
1.44 |
Notes to the Tables:
1 Contained metal calculations assume 100% recovery.
2 Worldwide porphyry operations cut-offs generally range between 0.20 and 0.40% copper. Estimates for the Xietongmen deposit use 0.15% copper cut-off.
Wardrop considers that a higher threshold grade of 0.20% copper is appropriate for this initial estimate of Newtongmen.
The resource estimate is based on drill core assay results from 35 drill holes (approximately 16,000 meters) of which all but three were drilled vertically. The holes were drilled at about 100-meter spacing on eight lines, with holes on adjacent lines offset by approximately 50 meters, outlining an elongate, northwest trending near-surface zone of mineralization approximately 850 meters long and 450 meters in width with intersections of copper and gold mineralization to the limit of drilling at 713 meters depth. Long intervals of copper and gold mineralization were encountered in most of the holes starting from surface, with higher grade intervals intersected near to the surface.
The Newtongmen deposit is located approximately 2.5 kilometers northwest of the Continental's Xietongmen copper-gold deposit, which is at the permitting stage. Outlined by drilling in 2005 and 2006, the Xietongmen deposit hosts 219.8 million tonnes of measured and indicated resources grading 0.43% copper, 0.61 g/t gold and 3.87 g/t silver, containing 2 billion pounds of copper and 4.3 million ounces of gold at a 0.15% copper cut-off (see news release dated January 24, 2007).
Independent engineering firm Aker Kvaerner E&C completed a Feasibility Study on the Xietongmen deposit in 2007, based on a copper price of US$1.50/lb, a gold price of US$500/oz and a silver price of US$8.50/oz and 182 million tonnes of proven and probable mineral reserves contained within the mineral resources above (see news release dated August 15, 2007). The proposed 40,000 tonnes per day operation at Xietongmen would produce 116 million pounds of copper, 190,000 ounces of gold and 1.73 million ounces if silver per year over a 14 year mine life. Upon completion of the permitting process, the project would take approximately 24 months to construct, employing a construction workforce of 2,500. During operations, the direct workforce would be approximately 460 people.
The property has additional mineral potential as indicated by the Langtongmen copper-gold zone, discovered mid-way between the Xietongmen and Newtongmen deposits. Eight holes have been drilled at Langtongmen. Highlights include: Hole 5057 returned a 135 meter interval grading 0.28% copper and 0.31 g/t gold. Hole 6205 intersected 131 meters grading 0.28% copper and 0.22 g/t gold (see news releases dated October 11 and November 28, 2006). Langtongmen is one of the high priority deposit targets that require drilling on the extensive Xietongmen property.
As the Company prepares for receipt of permits to enable construction at Xietongmen to begin, its programs are focused on engineering design, completion of environmental and socio-economic reports, and community engagement activities. Its community consultation is designed to identify and deliver programs that reflect local priorities. Development programs underway in 2008 and 2009 include awards of scholarships for post secondary education, provision of supplies and equipment to local schools and health clinics and construction of greenhouses for local villages. Planning is nearly complete for additional agricultural and community health programs to be deployed in 2009.
President and CEO David Copeland stated:
"Diamond drilling has successfully outlined significant porphyry copper-gold mineralization at Newtongmen. The Company is currently focussing on engineering and permitting for the immediate development of the Xietongmen deposit, and the Newtongmen deposit represents another near term development opportunity that would dramatically extend mine life. These discoveries, in combination with our community development efforts, indicate that the Xietongmen project can bring long term benefits to the region."
The Newtongmen mineral resource estimate was prepared using geostatistical methods by Greg Mosher, P.Geo., of Wardrop Engineering, an independent Qualified Person as defined by Canadian National Instrument 43-101, who has reviewed this release. A technical report will be filed within 45 days on www.sedar.com.
David Copeland, P.Eng., President and CEO of Continental and a qualified person, has reviewed this news release on behalf of the Company. For further information, please visit the Company's website at www.continentalminerals.com or call Investor Services at 604-684-6365 or toll free in North America at 1-800-667∙2114.
David Copeland
President & CEO