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// November 2008
The DingAn Gold & Polymetallic Project, Hainan

Highlights

Overview

The DingAn gold and polymetallic exploration project is located in DingAn County, which is about 40 km south of Haikou, the capital city of the Hainan Island Province. The main road runs through most of the prospect areas. The four exploration permits of the DingAn gold and polymetallic project of 165.4 km2 are 100% owned by HT Mining (Beijing) Limited Company. We have carried out significant amount of geochemical and geophysical work in the last two years.

Regional Geology

The properties are located in the northern part of the Hainan Island, tectonically belonging to the northern Leiming RIFT within in the Wuzhishan Uplift, which is part of the Southern China-Fold. Regional stratigraphy is simple, with Cretaceous sandstone being the main rock unit; and widespread igneous rocks of Permian-Cretaceous age are outcropped in the southwest area. This area has good geological mineralization background for gold, and uranium.

Property Geology

Stratigraphy in the mining area is simple, being the Cretaceous Lumuwan Group; Tertiary basalt cover and some basic dyke intrusions. In the SW area, there are some Mesozoic granites. The structures in the mining area are dominated by three groups trending NW, EW and NNW. The NW-trending group is the fault caused by interlayer sliding, trending NW and dipping NE @ 10¡ã~25¡ã. It¡¯s the major mineralization structure in this area, controls ore body V14¡¢V15¡¢V17 in the nearby FW Mine. The EW-trending group is a group of extending structure obliquely cross the rocks beds; the scale is small and extending is limited, controls ore body V1¡¢V4¡¢V13 in the nearby FW Mine; and dipping North @ 25¡ã~37¡ã. The NWN-trending group is a regional structure. It consists of a number of parallel or intermittent linear distribution fracture zones. The typical one is F2, being a normal fault, up to 440 m long and 1~5 m wide, trending 230¡ãand dipping 78¡ã.

Small granodiorite and granite intrusions of the late Mesozoic age are exposed near the ore bodies V17 and V14 in the FW Mine. The Granodiorite is oval-shaped, the exposed intrusion is some 0.12 km2, and it has intrusive relations with Cretaceous rock units. There are some pyrite (sulfidation?) and auriferous quartz veinlets occur in the inner contact zone. Gold mineralization may have spatial relationships with these intrusions.

Characteristics of Orebody in Nearby FW Mine

In an area of some 5km2, about 20 gold orebodies have been identified by shafts and trenching in the FW mining area, which is encompassed by our four properties. The orebodies mainly occur along the sliding structure betweens the rock layers. They are 70 -650 m long, extending for 360~680 m along the dip, trending 78¡ã and dipping 10-38¡ã. The thicknesses of the orebodies range from 0.13-3.2m. The ores are of high grades ranging from 10-200g/t, averaging 52.36 g/t Au, 153.37g/t Ag, with significant Pb-Zn of up to 12%.

Geochem & Geophysics

Geochem work has shown regional geochem anomalous in an area of 189.60Km2. More detailed work identified an area of 64 Km2 with high Au-Ag-Cu-Pb-Zn-As-Sb-Hg geochem anomalous. Detailed geophysical gravity and magnetic work suggests that the granodiorite in the SW area should extend underlying the exploration area and the FW Mine area¡£

Both the geochemical and the geophysical data indicate a significant potential to find a large, high grade gold and polymetallic deposit.


Hongling-Junying Cu, Au and Fe-Co Belt Project
Highlights Overview

The Hongling-Junying Cu-Au-Fe-Co exploration project is located in Zhanzhou area, some 160km SW of Haikou, the capital city of the Hainan Island Province. The main roads run through most of the prospect areas. The two exploration permits of the Hongling-Junying Cu-Au-Fe-Co project, totaling of 53.8km2, are 100% owned by our HT Mining (Beijing) Limited Company. We have been carrying out significant geochemical and geophysical work as well as significant trenching and drilling work since 2006.

Regional Geology

The properties are located in the western part of the Hainan Island, tectonically belonging to the NW of Wuzhishan Fold-Belt, and in eastern part of the Junying fault graben. The main rock units are the pre-Devonian silica-carbonate sedimentary rocks, actinolites, and meta-dolomite, hosting the Hongling iron deposit and the Pinyuancun copper deposit; the Silurian phyllite hosting the Hongling gold mineralization; and the Carboniferous meta-sedimentary rocks hosting Fe-Co orebodies.

Junying Fe-Co deposit

There is a Variscan Junying diorite (293 Ma) in the eastern part of the prospecting area near the major Fe-Co mineralization. Strong magnetic geophysical anomalous is spatially related to the Fe-Co mineralization. The iron mineralization is wide-spread; the iron orebodies are normally composed by 6-7 layers, totaling 15-70m in thickness, 50-170m long and extending for over 200m along the dip. The Fe grade is normally 50.5-59.5%. The Co orebodies appear to be spatially associated with the iron orebodies, normally within 30m of the footwalls and the hanging walls of the iron orebodies; they occur in the fractured rocks as veins, 65-170m long, and up to 6.4m wide. The Co contents are typically of 0.08-0.15%. All the characteristics of tectonic background, the host rock unit, and particularly the Fe-Co association with local high Cu, are comparable with the Shi Lu Iron Deposit. There is great potential to find a large Fe-Co deposit of the Shi Lu Iron Deposit type.

Pingyuancun Cu deposit

The Pingyuancun copper deposit occurs in the bottom part of the Carboniferous dolomite, which has been strongly silicified. Some trenching and aditing work discovered the orebody of some 10m wide. The orebody has been traced for over 60m along an adit previously dug by local people. The ores contain about 4-5% Cu with 8-25 g/t Ag, and there appears to be a normal correlation between the contents of copper and silver. The geological and elemental characteristics suggest the Pingyuancun deposit may be the type of ¡°sandstone hosted copper¡±. Therefore, there is a potential to find major copper mineralization in the silicified carbonate rock and in the underlying red sandstones.

Hongling gold prospect

The Hongling gold mineralization occurs in the Silurian Tuolie phyllite. The significant Baolun Gold Deposit, which contains over 2Moz gold of high grade, occurs in the same rock units. Detailed geochem work identified strong geochem anomalous of Au, Ag, As and Sb in this area. The follow up geological mapping and trenching discovered some auriferous quartz veins. The potential may be significant.

Please contact us for enquiries or would like to express interest in the project.

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