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Press release from CNW Group

GobiMin Inc - Increases Indicated Resource Estimates at Sawayaerdun Gold Project to 56.5 Million Tonnes at 1.3 g/t Au for 2.3 Million Ounces in Zones I and IV

Tuesday, April 03, 2012

GobiMin Inc - Increases Indicated Resource Estimates at Sawayaerdun Gold Project to 56.5 Million Tonnes at 1.3 g/t Au for 2.3 Million Ounces in Zones I and IV08:00 EDT Tuesday, April 03, 2012TSX-V: GMNTORONTO, April 3, 2012 /CNW/ -(TSXV:GMN) GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce the latest resource estimates for Zones I and IV at the Sawayaerdun Gold Project after completion of its previously announced 92 hole infill program completed during 2011.The current resource estimates at a 0.5 g/t Au lower cut-off base case are:      ZONE IV     INDICATED MillionBCMMillionTonnesAverage GradeAu g/t ID2Contained Gold1000 Oz ID2OXIDE 0.30.81.2                  31SULPHIDE 17.851.71.3             2,145 Total18.152.51.3             2,1762011 Estimate *  34.11.3             1,378 Increment  18.4         798      INFERRED Million BCMMillion TonnesAverage Grade Au g/t ID2Contained Gold1000 Oz ID2OXIDE 0.10.21.3                  10SULPHIDE 15.043.51.1             1,533 Total15.143.81.1             1,5432011 Estimate *  13.51.0                426 Increment  30.3              1,117      ZONE I     INDICATED MillionBCMMillionTonnesAverage Grade Au g/t ID2Contained Gold1000 Oz ID2OXIDE 0.10.21.0                    5SULPHIDE 1.33.81.1                133 Total1.44.01.1                139      INFERRED MillionBCMMillionTonnesAverage Grade Au g/t ID2Contained Gold1000 Oz ID2OXIDE 0.00.00.6                    0SULPHIDE 3.610.41.0                333 Total3.610.41.0                333      TOTAL MillionBCMMillionTonnesAverage Grade Au g/t ID2Contained Gold1000 Oz ID2INDICATED 19.556.51.3             2,314 INFERRED 18.754.20.8             1,876 This latest resource estimate adds 18.4 million tonnes of Indicated resources for 798 thousand ounces of contained gold and 30.3 million tonnes of Inferred resources for 1,117 thousand ounces to the previous 2011 resource estimate for Zone IV.  There has been no previous resource estimate for Zone I.The Company had completed a 92 diamond drilling program at Sawayaerdun in the northwest of Xinjiang, China as scheduled in October 2011. This drilling in-filled and extended the earlier drilling in Zone IV to improve the reliability of the previously announced National Instrument (NI) 43-101 compliant resource estimate and delimited another approximately parallel mineralised structure at Zone I located 1,200 m to the east of Zone IV. This latest resource estimate utilises the drilling results of all previous drilling including the 2011 program totalling approximately 32,000 m.Sawayaerdun Geology The Zone IV and Zone I structures are part of a series of sub-parallel shears that dip steeply, approximately 70 degrees to the west, following a structural corridor that strikes east-northeast within fine grained Devonian clastic metasediments.  These metasediments are composed of a turbidite sequence that has been altered to phyllites becoming more carbonaceous in the proximity of the mineralized shears, see Figure 1.  The mineralized shear making up Zone IV is mapped over a strike length of over 6,500 m within GobiMin's tenements with drilling confirming that this structure is mineralized along the whole of this strike length and at depth.  Mapping and drilling along Zone I has shown that this mineralized structure continues over 3,200 m of strike length.Current Sawayaerdun Resource The current mineral resource estimates are based on 221 diamond drill holes totalling approximately 53,200 m for 18,606 gold assays. Of this total, GobiMin drilled an aggregate of 127 holes for approximately 38,000 metres during 2010 and 2011, Figure 2.The samples from all the GobiMin drilling were assayed for gold by the Geophysical and Geochemical Exploration Team of Xinjiang Geology Bureau laboratory in Urumqi, Xinjiang, China using the activated carbon/foam absorption of dissolved gold in aqua regia technique.  A program of QA/QC sampling and assaying has been followed by the Company's geological staff and the laboratory to ensure that the assays obtained are NI 43-101 compliant and fit for the purpose of this resource estimate.The grade estimation domains for the two Zones modelled were wire-framed using an approximate 0.5 g/t Au shell. A block model was then generated using block dimensions of 10 metres EW x 10 metres NS x 5 metres vertically into which the drill intercept grades were interpolated using a 200 m along strike x 200 m depth x 20 m across strike search ellipse with an inverse distance squared (ID2) algorithm.  A second inverse distance cubed algorithm was also used as a check on the ID2 estimate and to determine the effect of more discrete modelling of the grades.      ZONE IV    CumulativeINDICATED    Lower Cutoff ID2 g/tMillion TonnesAverage Grade Au g/t ID2Average Grade Au g/t ID2Contained Gold1000 Oz ID2Contained Gold1000 Oz ID25.000.16.37.624292.502.13.23.52172322.005.52.62.74564751.758.92.32.46646871.5014.62.02.19579851.2522.71.81.81,3141,3411.0033.51.61.61,7021,7290.7544.71.41.42,0162,0390.5052.51.31.32,176 2,194 0.0057.91.21.22,2302,245Table 1  Zone IV Indicated resource estimates at various lower cut-off grades      ZONE I    CumulativeINDICATED    Lower Cutoff ID2 g/tMillion TonnesAverage Grade Au g/t ID2Average Grade Au g/t ID2Contained Gold1000 Oz ID2Contained Gold1000 Oz ID25.000.00.00.0--2.500.02.62.7222.000.22.22.316171.750.32.22.220211.500.52.02.030301.251.31.61.664651.001.91.41.488890.753.01.21.21191210.504.01.11.11391410.005.10.90.9146147Table 2  Zone I Indicated resource estimates at various lower cut-off gradesThe Competent Person has considered sampling density and distance from drill intercepts in order to classify the Mineral Resources according to the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by NI 43-101. Model cells within 50 m of a drill intercept were classified as Indicated and between 50 m and 200 m as Inferred.The Mineral Resource is not constrained by any open pit mining shell since it is projected that this deposit will be mined utilising underground mining methods commonly used in China for this type of deposit.  A feasibility study is currently being prepared following Chinese standards, as required by the Chinese authorities before mining can commence, to determine the viability of these resources.Metallurgical TestingDuring 2011, two sets of metallurgical gold recovery tests were done on representative samples of fresh sulphide ore from the underground workings in Zone IV by the Beijing General Institute of Mining and Metallurgy and the Processing Research Institute of XBGMR.  The results of these floatation and roasting tests are summarised in Table 3.     June 2011, Beijing General Institute of Mining and MetallurgyStageHead Grade g/tRecovery Rate % AuAgAuAgFloatation2.534.509042Floatation-Roasting-CIL1 *  8234     March 2011, Processing Research Institute of Xinjiang Bureau of Geology and Mineral ResourcesStageHead Grade g/tRecovery Rate % AuAgAuAgFloatation2.412.829362Floatation-Roasting-CIL  7935Table 3  2011 Metallurgical test results    * Includes CIL tailings re-processingA copy of the full technical report that includes the NI 43-101 resource statement will be posted by GobiMin on SEDAR within 45 days.Pursuant to NI 43-101, the qualified person responsible for the technical data provided in this press release is Mr Philip Jones, a geologist with over 35 years geological experience, including gold, in mineral exploration, development and mining. Mr Jones, B App Sc, AusIMM, AIG, is the Company's consultant geologist and has reviewed and approved the contents of this news release.Future DevelopmentsIn addition to further infilling drilling program of 30,000 meters commencing in April 2012, the Company will continue the mine development program in 2012 which includes construction of water and electricity supply facilities, and basic civil works.About GobiMinAs at December 31, 2011, GobiMin had approximately USD62.30 million (CAD63.40 million) in cash and cash equivalent, which represents approximately USD1.00 (CAD1.01) per share based on the total issued capital of 62,596,296 shares.GobiMin owns a 70% equity interest in Xinjiang Tongyuan Minerals Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang, China. GobiMin also owns a 40%-50% interest each in four other base metal joint ventures in Xinjiang and an 8% equity interest in the Yanxi Copper Deposit.   In addition, the Company also holds a 48.02% equity interest in a silver operation.GobiMin is aggressively seeking opportunities to acquire high quality mining and exploration projects.Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. The readers are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. Forward looking information includes without limitation, statements regarding the size and quality of the Company's mineral resources, progress in development of mineral properties, the prospective mineralization of the properties, and planned exploration programs. The readers should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate.  These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law. "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."To receive GobiMin press releases by email, send a message to info@gobimin.com and specify "GobiMin press releases" on the subject line.PDF with caption: "GobiMin Inc.". PDF available at: http://stream1.newswire.ca/media/2012/04/03/20120403_C2658_DOC_EN_11866.pdfFor further information: Felipe Tan, Chief Executive Officer Tel: (852) 3586-6500 Email: felipe@gobimin.com