Inter-Citic Minerals (OTCQX: ICMTF; TSX: ICI) continues to use trenching as its primary method for new discoveries at Dachang due to the thin soil cover and near surface mineralization. In 2011, the Company completed almost 21,000 metres of trenching resulting in the discovery of four new areas and the expansion of two areas. The most advanced new discovery is the 861/XP fault system, which has now been drill tested on its known western and eastern extents. The 861 Zone located on the fault’s west end is still open to the west and has now been consistently intersected in trenches and 40 metre spaced drill fences along a 1.4 kilometre strike length to depths of 125 to 150 metres.
By Thom Calandra @ Large www.babybulls.com
SAN FRANCISCO — A China-centric gold developer says China’s consumer price inflation is understated and real estate developers will melt down if the nation’s banks step away from largely vacant offices, subdivisions and warehouses.
The informed warning is good for gold and a wake-up call for soaring housing and commercial real estate prices in China.
Jim Moore of Inter-Citic Minerals (ICI in Canada and ICMTF in USA) gave his forecast before word of declining home prices in many China cities hit the business wire today.
Mr. Moore explained to a group of professional investors how rising gold demand, negative real interest rates and tens of billions of dollars of China cash seeking producers will boost mineral resource juniors that have suffered since the 2008 mortgage debt disaster.
Inter-Citic Minerals (OTCQX: ICMTF; TSX: ICI) reports the fifth and final set of drill results from 26 diamond drill holes received from the 2011 exploration season at the Company’s Dachang Gold Project. As a result of the 2011 drill program, this mineralized fault structure has now been delineated by the Company through drilling and trenching over a 2.8 km strike length. The eastern and western extensions of the fault structure remain open and additional drilling will be required in the central portion of this fault to fully test its potential. The Company believes that the 861/XP Zone could be the basis for a potential second shallow open pit at Dachang in addition to the already defined Dachang Main Zone resource area. Highlights from the current results include the following:
- Drill hole CJV-1268 on the 861 Zone which reported an interval of 6.0 m with an average grade of 3.20 GPT gold.
- Drill hole CJV-1270 on the 861 Zone which reported an interval of 3.0 m with an average grade of 3.21 GPT gold.
- Drill hole CJV-1278 on the 861 Zone which reported an interval of 13.0 m with an average grade of 3.61 GPT gold.
- Drill hole CJV-1280 on the 861 Zone which reported an interval of 4.5 m with an average grade of 4.16 GPT gold.
- Drill hole CJV-1314 on the 861 Zone which reported an interval of 12.0 m with an average grade of 2.09 GPT gold.
- Drill hole CJV-1315 on the 861 Zone which reported an interval of 12.0 m with an average grade of 3.50 GPT gold.
SINGAPORE (Reuters) – For Chinese shipping executive Ping Bo buying gold is the best way to protect his family’s wealth and give his 10-year-old son a headstart into adulthood.
“For my son, the idea is that he will get a nice stash of gold that he can cash out when he turns 21 or when he gets married,” said Ping, one of over 2 million people that have opened accounts in the past two years to accumulate gold at the Industrial and Commercial Bank of China (ICBC).
The ICBC launched the accounts in April 2010. The gold that it has bought to back them is only a fraction of total Chinese demand, but the explosive growth in the number of investors that have signed up is a symptom of the wider demand for the precious metal in the world’s most populous country.
GoldForeCaster (BENONI) – The growth of China’s presence in the global gold market has been phenomenal in the last dozen years. Prior to this century, HSBC sent a delegation from their London gold department to see the Chinese financial authorities and were rebuffed as ‘trying to sell gold to China’. Since then, the Chinese financial authorities switched on and set off with a purpose.
In 2001, the Chinese government lifted its final controls on the gold market, releasing a pent-up demand that since then has become stronger. From 2001 to 2010, China’s annual consumption of gold grew at a 7.5% compounded annual growth rate. This chart shows how China’s demand for gold jewelry has increased from just over 15.55 tonnes [500,000 ounces] in the late 1980’s to over 373.25 tonnes [12 million ounces] at the end of 2010, in spite of gold going from $200 $1,650 an ounce.
LONDON (BullionVault.com) – So “growth has [now] replaced inflation as Beijing’s top policy concern,” says Qu Hongbin, Asian economics expert at HSBC in Hong Kong, forecasting three cuts to China’s banking reserve requirements by July.
“There is developing in Beijing, I think, almost a panic about global economic prospects and the impact of the European crisis on China,” agrees Michael Pettis, finance professor at Peking University. He goes one further and forecasts debate – if not the fact – of a currency devaluation in 2012.
Yes, you read that right. In a US election year, Beijing’s policy wonks are arguing over cutting the Yuan’s foreign exchange value, not raising it.
LONDON (Sharps Pixley) – In the old days unexplained rallies in the gold price would be attributed to “hedge fund buying” with an insouciant shrug of the shoulders. Meanwhile a bounce in the price off a support level might be supposed to be “Indian buying” coupled with the words “bargain hunting” or the more evocative “bottom-picking”.
There was often some truth in those suppositions.
Today gold strength is normally ascribed to the Chinese – and with good reason. Hong Kong imports rose by a massive 20% in November over the previous month – which is a trebling over the last 11 months. Hong Kong imports rose from 86 tonnes in October 2011 to over 102 tonnes in November 2011. China exceeded Indian demand for the first time in the last quarterly report issued by the WGC in its World Gold Demand Trends.