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.
James West, publisher of the Midas Letter commented on Inter-Citic Minerals Inc. (OTCQX: ICMTF; TSX: ICI) recently in an interview with the Gold Report titled: Precious Metals Takeovers Push Share Prices. We have included the Inter-Citic excerpt here with a link to the full interview below:
JW: Inter-Citic Minerals Inc. (ICI:TSX) is very interesting to me. Last year, the company turned down an unsolicited bid from a major Chinese company that management viewed as excessively opportunistic. Since then, it has announced great results from its drilling at Dachang and has increased the value of its deposit.
Inter-Citic is a great entry-level stock now. It is lower than before the takeout offer, and we know that the company that wanted to take it out is still watching it. I think we will see an improved offer from the same or another Chinese company.
TGR: Is it an advantage that Inter-Citic has a large gold deposit in China?
JW: Absolutely. For five years, China as a sovereign entity has been the largest acquirer of gold in the market and the Chinese people are among the world’s most aggressive consumers of gold for investment purposes. Inter-Citic’s proximity to that market is a direct advantage.
TGR: Why has Inter-Citic’s share price lagged?
JW: The fact that it’s in China. There is a perception that only a Chinese major or a Chinese mining company could put it into production successfully.
Some investors saw the failure of the last takeover bid as a lost opportunity. But if you look at the deposit, I think management did the right thing. Drilling aggressively while improving the deposit is the right move.
I think the share price is directly a result of the failed takeover bid. I think the share price will rise dramatically as the value of the deposit is improved and the inquiring company will return with a better offer.
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.