AUC.V PRESS RELEASE NO. 01/06
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1 AUC.V PRESS RELEASE NO. 01/06 Golden China Update on the Resource Drill-Out at Nibao And Drilling at Beyinhar and Wangmo Toronto, Ontario, January 11, Golden China Resources Corporation (TSX.V: AUC) ( Golden China ) is pleased to provide update on the results of the additional drilling at its Nibao and Beyinhar gold projects. NIBAO, GUIZHOU Golden China s Nibao 2005 drilling programme has completed 10,632m of diamond drilling as of 30 November 2005, concentrating on Nibao East and Nibao South areas (1.5-2 kms apart). At the Nibao East discovery area, the fence drilling - generally widely-spaced (100m-apart) with average of 2-3 drill holes in one section - so far has extended the strike length of the gold mineralization at Nibao East to over 800m with a width of over 250m and hosting thickness of up to 35m. open open Nibao East area- showing distribution of drill holes, summary of g/t x interval metre in the drill holes.
2 Nibao East section showing distribution of the gold-mineralized intervals (yellow- Emeishan sulphidic sediments; dark blue- Dachang silicified limestone breccia; green- Longtan Fm siltstones). Tabulation of the significant gold assay intersections at Nibao East from the on-going 2005 drilling programme includes: Many of the drill holes successfully encountered long stretches of gold mineralization with grades greater than 1.5 g/t Au. The significant drill hole NBDDH145, with 3.04 g/t Au (incomplete assays received as of this release) suggests that the mineralization at Nibao East may open to the west. Mineralization to the west appears to be supported by the coincident coherent IP chargeability highs,
3 continuity of the productive structures and gold-in-soils anomaly. At Nibao South, the fence drilling - generally 80m-apart with 3-5 drill holes per section - has confirmed continuity of the gold mineralization with a strike length of at least 1000m, over 170m in width and hosting an average thickness of 5 to 20 metres. In addition, detailed logging of the step-out hole NBDDH198 has identified 43m-long interval of faulted and sulphidic Emeishan Formation sediments, the main host rocks to both the Nibao East and Nibao South gold deposits. open Nibao South- showing geology, distribution of drill holes and summary of g/t x interval metre in the drill holes
4 Tabulation of the significant gold assay intersections at Nibao South from the on-going 2005 drilling programme includes: Golden China has a NP compliant Resource Statement in preparation, which it expects to release very shortly. BEYINHAR, INNER MONGOLIA Golden China has completed its 2005 programme at the Beyinhar gold project in Inner Mongolia, completing 4829 m (totalling 29 drill holes) of diamond drilling. Gold assay results were received from twenty six (26) drill holes with the remaining assays expected to be completed and analysed shortly. Early in 2005, Golden China completed detailed mapping, trenching, an expanded detailed soil geochemical survey and a high-resolution IP survey, all of which have provided valid targets for the just-concluded 2005 drilling programme.
5 Quartzite Tertiary Sediments Rhyolite Magnetic units Inferred intense silicification from IP Inferred moderate silicification from IP Beyinhar- showing superposed geology, trace of Beyinhar Shear, location of drill holes, results of IP (resistively) interpretation and ground magnetics. The successful results to date have identified two (2) adjacent areas for further drilling in early At the Beyinhar North area (shown below), both the 2004 (BYD001-BYD011) and the 2005 drilling delineated a geologically continuous zone of gold mineralization, at least 320m-long and with up to 32m-wide gold mineralization. This mineralization hosts high-grade shoots, with drill intervals of up to 16m and grades up to 29.7 g/t Au. Beyinhar North area- showing wide-spaced drill-delineated gold-mineralized deposit hosted principally along the Beyinhar Shear and ENE-trending fault zones. High-grade shoots, up to 29.7 g/t Au characterize the intersection of the two productive structures.
6 The table below summarizes gold assay results on Golden China s drilling at Beyinhar North area (included are results from previous press releases): Gold mineralization continues immediately south of Beyinhar North area, where wide-spaced drilling encountered near-surface zones of gold mineralization, with gold assay values up to 3.10 g/t Au (please see figure below). The gold mineralization occurs along the contact zone of Proterozoic quartzite rocks with a Cretaceous rhyolite dome; the contact zone coincides with a productive NE-trending shear. This zone of gold mineralization appears to be at least 500m long and is open to the southwest and at depth, with mineralized drillhole widths up to 56m.
7 Area immediately south of Beyinhar North- showing approximate outline of near surface, generally low-grade gold mineralization which is at least 500m long. Also shown is the interpretation from the high-resolution IP survey conducted in May Drill holes are inclined 60 degrees. The table below summarizes gold assay results for Golden China s drilling immediately south of the Beyinhar North area: Golden China is now compiling all the information from the drilling programme and plans to do followup/resource definition drilling immediately after the winter months in early WANGMO, GUIZHOU Golden China recently commenced a 3,500m exploration drilling at the Wangmo gold prospect, 35 kms east of SinoGold s Jinfeng 3.5 Moz gold deposit. In May Golden China signed an agreement with the Brigade 115 of the Guizhou Bureau of Geology and Mineral Resources covering granted exploration tenements at Wangmo, Guizhou Province. Under the terms of this agreement, Golden China will earn 70% interest by
8 spending US$ 1M over a three-year period. Golden China can earn a further 14% when the project is taken to bankable feasibility. About Golden China Resources Corporation: Golden China Resources Corporation is a public company focused on the exploration and development, operations, and merchant banking in the Chinese precious metal industry. Golden China is capitalizing on a combination of its international mining and financing expertise and a partnership with the Hong Kong-based financial services provider, Kingsway Group, to become a significant participant and consolidator in China s developing precious metals sector. Golden China s shares are listed on the TSX Venture Exchange under the symbol AUC. Dr Renato Bobis (MAusIMM, CP Geo), Golden China s Exploration Manager, is the qualified person as defined by National Instrument , is overseeing the company's exploration work at Nibao and Beyinhar and supervised the preparation of the information in this release. Samples from Nibao were prepared by BGMR at Guiyang, Guizhou, China and assayed by ACME Laboratories in Vancouver, Canada. Samples were assayed for gold by fire assay (30 gram) with ICP finish. Samples from the Beyinhar programme were prepared by SGS China and assayed by SGS China in Tianjin, China. Samples were assayed for gold by fire assay (30 gram) with AAS finish. Golden China inserted blanks, standard and duplicate samples at sample preparation stage to monitor the quality control of the assay data. For further information please contact: Golden China Resources Corp. Dr. Michael Hitch, VP Exploration & Development and COO Tel.: ext. 234 Fax: info@goldenchina.ca or Renmark Financial Communications Inc. Tina Cameron: tcameron@renmarkfinancial.com Christopher Wells : cwells@renmarkfinancial.com Media-Cynthia Lane: clane@renmarkfinancial.com Tel.: Fax: Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading Risk Factors and elsewhere in the Company's periodic filings with Canadian securities regulatory authorities. Such information contained herein represents management s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forwardlooking statement. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
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