There is one overriding fact regarding Inter-Citic’s gold mining project in China – it is very, very large, both geographically and in mineral potential. Another fact: exploration to date has discovered at-surface gold mineralization with remarkable consistency, open both on strike and at depth, that is economically open-pittable. A final, and perhaps most vital fact, particularly for companies operating in China: Inter-Citic has deftly established a solid base in China, and has proved over nearly a decade that it can operate successfully in an environment where many other junior mining companies have struggled. Inter-Citic is a company that has become familiar with the people, the culture, and the business environment of China.
        The Dachang Gold Project – encompassing more than 50 major gold-in-soil anomalies and multiple mineralized fault systems across the large property – is located on a plateau in western China’s Qinghai Province.
        Inter-Citic acquired an 83% interest in the Dachang Joint Venture in 2004 from the provincial Geological Survey Institute (QGSI). As potential mineralization targets were identified, the company continued to explore with progressively larger trenching and drilling programs. All of that work paid off with the identification of numerous gold-bearing fault structures and the NI 43-101 complaint gold resource. In 2009 Inter-Citic identified new areas of significant gold mineralization. Testing anomalies up to 10 km from the main resource area, 2009 drill intersections returned results from 2.29 gpt to 7.52 gpt over widths up to 34.6 meters and distances along strike of up to 750 meters.
        “The dominant carbonate thrust fault could be an ideal host for high grade gold mineralization and further discoveries,” said Moore. “Dachang has tremendous exploration potential.
        “With only a small portion of the property fully explored, Dachang already has the capacity to become a significant gold producer and a project that can quickly be put into production,” says Moore.
        The at-surface, sedimentary-hosted gold deposit is open-pittable. Inter-Citic’s development plan calls for full permitting in less than two years and production beginning in three years.
        Once in production, Dachang has the potential of becoming a very profitable mine for Inter-Citic. The company anticipates a total capital cost of only $104 million and operating costs of $404 an ounce of gold. At a $750 gold price, the company will be able to pay back its capital costs in a mere two years. The mine plan published in the Company’s Scoping Study in 2009 was only based on 1.5 million ounces and does not include the extensive drilling from 2009. Economics of the project vastly improve with each additional ounce or increase in the long-term price of gold.

        Although Inter-Citic Minerals is based in Toronto, its management team has been singularly focused on the People’s Republic of China for almost a decade. During that time, the company developed unique relationships with business and governmental leaders that paid off handsomely with the acquisition of the Dachang Gold Project in 2004 and a 30-year joint venture agreement with local partner QGSI. That agreement gives Inter-Citic a major advantage over other companies operating in China’s Qinghai Province – a formal right of first refusal to acquire subsequent projects.
        “This gives Inter-Citic a rich opportunity pipeline for future gold and mineral exploration and development,” says Moore, who has more than 15 years experience in international business. He has worked closely with Hong Kong-based investor groups since 1997 and has witnessed first hand the evolution of China’s mining industry. In addition to Zijin Ming Group, major Inter-Citic shareholders include such prominent Chinese business families as the Hos of Macao’s banking world and the Lees of Hong Kong’s Henderson Group, as well as institutional, investment fund and retail investors.
        Moore has put together a sharply-honed, multi-talented management team that has systematically advanced the company’s exploration in Qinghai Province while deepening ties to China’s political and investment power structure. Lou Pasubio, CFO and VP China, is closely involved in all phases of strategic planning and is responsible for implementing the company’s joint venture contracts and managing business affairs in China.
         Garth Pierce, Inter-Citic’s VP of Exploration, has more than 30 years of exploration and project management experience, including 17 years with Noranda where he played a significant role in that company’s 1982 Hemlo acquisition. He has managed advanced gold projects in Canada, the U.S. and Norway prior to joining Inter-Citic five years ago. Malcolm Swallow, Inter-Citic’s Manager of Mine Development, has over 30 years of operational and project management experience, particularly in the evaluation, development, construction and operation of both underground and open pit mines.

        Inter-Citic Minerals’ ability to attract a significant investment from a major player in international gold mining is clear validation of the quality and value of the Dachang Gold Project – and creates a natural candidate for additional interest by Zijin, although as part of its investment Zijin agreed to a two year standstill. Last year, Inter-Citic also attracted the strong interest of several leading investment analysts and investment advisors:
        • “...a strong management and technical team...well financed to continue an aggressive program leading toward a production decision”... Lawrence Roulston, editor, Resource Opportunities.
        • “...a significant amount of exploration upside remains laterally and at depth”...Haytham Hodaly, analyst, Salman Partners.
        • “...this is an excellent opportunity to invest in a potentially high-return, low-cost gold project in China”...Catherine Gignac, analyst, Sandfire Securities.
        That interest should intensify this year after Inter-Citic expands its resource at Dachang. The first results of 2010’s 25,000-meter drilling program should start coming in by late summer.
        Regardless, Inter-Citic’s Dachang Gold Project is already being considered by many in the industry as a potentially major new project with a solid base for additional future growth..