Zone of Peace
Drilling Continues To Expand Xietongmen, Tibet Copper-Gold Deposit
Tue May 2, 2006
Vancouver, BC -- Gerald S. Panneton, President and CEO of Continental Minerals Corporation (TSX.V-KMK; OTC.BB-KMKCF), and Anthony Garson, President and CEO of Great China Mining Inc. (OTC.BB-GCHA), announce the results from the first nineteen (19) core holes drilled in 2006 at the Xietongmen copper-gold deposit, located 240 kilometres west of Lhasa in Tibet, People's Republic of China.
Drilling in 2005 showed the presence of a significant porphyry copper-gold deposit, with excellent potential for expansion. The 2005 50-metre drill spacing program demonstrated strong continuity to the copper and gold mineralization, both laterally and vertically, over an average thickness of 200 metres. An initial estimate of the mineral resources was released in early February.
The objectives of the 2006 program are to fully assess the resource potential of the project and collect the necessary data for a feasibility study and environmental and social impact assessments, targeted for completion in 2007.
Programs were initiated at site in February. Seven rigs are currently active in the planned 22,000-metre program, testing the extensions of the Xietongmen deposit. Excellent intervals of copper and gold continue to be intersected. Most of the drilling done in 2006 has been along three sides of the deposit: north, east and southeast. Two additional rigs will be added to complete the extensive program.
In the east (section 3249000N), drill holes 6065, 6068, 6072 and 6080 have extended the width of the deposit by 200 metres to the east. The best result is in hole 6068 with a supergene intersection grading 1.56% copper equivalent (CuEQ) over 8.6 metres, followed by an interval of 152 metres averaging 0.83% CuEQ. On section 3249200N, hole 6079 intersected 220 metres averaging 0.91% CuEQ, including a higher-grade section of 1.15% CuEQ over 152.2 metres.
In the north, holes 6070 and 6067 on section 3249300N, and holes 6082 and 6074 on section 3249350 have extended the deposit for another 100 metres to the north, where the deposit remains open. The best intersection in the north is in hole 6070 with an interval of 268 metres averaging 0.74% CuEQ.
In the southeast area, results from six holes were received on two sections, 3248900N and 3248850N. The best intersection was obtained in hole 6069 with an interval of 88 metres averaging 0.83% CuEQ.
Results received for the first 19 holes are provided on the attached Table of Assay Results. A Property Location Map, a Drill Hole Plan and Cross Sections are posted on the websites: www.continentalminerals.com and www.greatchinamining.com.
Continental and Great China Mining recently announced preliminary agreements between Continental and certain principal Great China Mining shareholders, whereby the companies will be merged to unify 100% ownership in the Xietongmen property in Continental (see joint news release April 13, 2006). Completion of the merger is subject to a number of conditions including the execution of definitive merger documentation, and shareholders and regulatory approvals, and is likely to complete in the third quarter of 2006.
The venture is committed to responsible development. Accordingly, an expanded community engagement program is underway with the long term objective to ensure that the project provides direct, tangible benefits for local residents and communities. Hence, active dialogue with the local residents in the Tibetan villages and the various authorities in the region will be ongoing in order that the project proceeds in a manner that respects local socio-economic priorities and incorporates a high standard of environmental management.
Mark Rebagliati, P.Eng., a Qualified Person as defined under National Instrument 43-101, is supervising the drilling program and quality assurance and quality control ("QAQC") programs on behalf of Continental Minerals Corporation. The program includes rigorous QAQC 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.
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