Correction:Published by MAC on 2007-05-15
From Dickson Hall of Hunter Dickson, to Editor, MAC (31 May 2007):
"I am writing to correct the following factual errors that appear in your article, “Continental Minerals to develop Xiangcun copper-gold mine in Tibet”, which is posted on your website http://www.minesandcommunities.org/Action/press1505.htm.
1. “Continental Minerals to develop Xiangcun copper-gold mine in Tibet”, There has not yet been a production decision. A feasibility study is currently underway. Please note the that the correct spelling of the project in Chinese pinyin is Xiongcun.
2. “…proven reserves of 220 million tons of porphyry copper-gold…”
The project is at the feasibility study stage and does not have any mineral reserves, proven or otherwise. What we have released are mineral resources which are outlined in our news release, “2006 Drilling Expands Xietongmen Copper-Gold Resource by 50%” and can be found at http://www.hdgold.com/kmk/NewsReleases.asp?ReportID=167641&_Type=News-Releases&_Title=2006-Drilling-Expands-Xietongmen-Copper-Gold-Resource-By-50.
Although the two terms appear similar, they are very different entities and have strict definitions:
Mineral reserve – the economically mineable part of a Measured Resource supported by at least a pre-feasibility study. The study must include information on mining, processing, metallurgical, economic, and other factors that demonstrate economic extraction is justified.
Mineral resource – the estimated amount of material in a mineral deposit of a form and quantity and of such a grade or quality that has reasonable prospects for economic extraction. A mineral resource is typically based on limited drill information, and it cannot move to a mineral reserve unless it is supported by at least a pre-feasibility study.”
3. The Xiangcun copper project has a total investment of $450 million. This is a projected figure. The actual amount will be determined by the feasibility study.
4. “…expansion of the mine site from an initial 12 square kilometers to a current 120 square kilometers.”
The 120 km refers to the expanded size of the exploration property following the merger of Continental with its former partner, Great China Mining. The actual mine site, if the deposit is developed, would be much smaller, in the order of 35 hectares or 4 square kilometer.
5. Newtongmen, was discovered 3 kilometers from the Xietongmen site and contains similar amounts of porphyry copper reserves.
Newtongmen is in the early drilling stage with only a few holes (5) as opposed to the 200 drilled on Xietongmen. It has no resources or reserves.
6. Guo commented that the Xietongmen site has excellent metallurgy, with copper continuity in excess of 90 percent, and does not require cyanide for copper recovery.
…copper recoveries are in excess of 90 percent, and no cyanide is required to recover the gold.
As a responsible organization, I expect that you value accuracy which is why I have provided these facts so that you can amend your article. If you require further information, do not hesitate to contact me.
Director, Corporate Development Asia
The Continental Minerals Corporation