MISSISSAUGA, Ontario, Sept. 14, 2005 (PRIMEZONE) -- China Resources Group Ltd. (Pink Sheets:CAEO) (the "Company" or "CRG") is pleased to announce that it has entered into a Definitive Mineral Exploration Co-operative Agreement (the "Agreement") for the exploration and development of the Qian Tai Zi Gold Deposit in Anhui Province of the People's Republic of China.
"Reaching this agreement is an enormous leap forward for our company," said Gerry Belanger, President and CEO. "Not only is the Qian Tai Zi Gold Deposit an exciting project with established gold resources and significant upside, but we have successfully aligned ourselves with the local government mining authority in a highly prospective yet underexplored area. We look forward to working with our new strategic partners to explore and develop this and other high-potential prospects in the Wuhe Mining District."
The Qian Tai Zi Gold Deposit is an advanced stage gold exploration and development project located 4 km northeast of the City of Wuhe in northeast Anhui Province. Initially identified through a regional aeromagnetic survey completed in the late 1980's, the Qian Tai Zi Gold Deposit was further defined by ground-based geophysics, a geochemical survey, and a 26-hole diamond core drilling program conducted by No. 312 Geological Prospecting Team, under the jurisdiction of the Anhui Geological Minerals Prospecting Bureau.
Based on the exploration work completed to date and calculations made by Chinese geologists and engineers, the Qian Tai Zi Gold Deposit contains an estimated resource of approx. 371,679 tonnes grading 8.52 grams of gold per tonne (112,000 ounces of gold) in all categories measured to a depth of only 100 metres. CRG feels that there is a high probability that this estimate could be significantly improved and increased through the utilization of Western exploration and mining technologies and drilling the deposit to depths below 100 metres.
The Qian Tai Zi Gold Deposit is situated within the Tancheng-Lujiang Fault Zone, a 3500 km north-northeast trending fault system which is associated with some of China's largest producing gold mines. In Shandong Province, north along the fault system, the Jiaodong Gold Zone hosts numerous large scale mines which account for over 20% of China's gold production. The overall geological conditions in the Wuhe Mining District are similar to that of Shandong Province, but remain relatively underexplored.
CRG feels that the Wuhe Mining District has a high-probability of hosting large-scale high-grade gold deposits and represents a significant opportunity for exploration investment. The Company intends to fully exploit its "first in" foreign status in the Wuhe Mining District and will continue to evaluate additional mining projects for joint venture with its local Chinese partner.
Under the terms of the Agreement, CRG and its Chinese partner, The Mineral Resources Development Company of Wuhe County, will establish a joint venture company to further the exploration and development of the Qian Tai Zi Gold Deposit and other mineral projects in the region. CRG can earn up to 75% of the joint venture company by making investment contributions (installments) of up to $1,500,000 over a two or three-year period. The Mineral Resources Development Company of Wuhe County, representing the local government, will earn 25% of the joint venture company through their contribution of the Qian Tai Zi Gold Deposit 10-year exploration licence.
CRG intends to immediately conduct an aggressive exploration program at the Qian Tai Zi Gold Deposit. The exploration program will include additional detailed mapping, geophysics, deposit modeling, and an extensive diamond core drill program designed to confirm previous exploration results and to test the known boundaries of the deposit.
Further information regarding the Company's exploration plans at the Qian Tai Zi Gold Deposit will be made available in a forthcoming press release.
About China Resources Group Ltd.
China Resources Group is an emerging resource exploration company focused on the acquisition and development of high-potential exploration properties in China. CRG is currently evaluating projects in Anhui, Gansu, and Shanxi Provinces. China Resources Group shares are traded over-the-counter on the Pink Sheets.
To learn more about China Resources Group, visit www.chinaresgrp.com Disclaimer: Portions of this press release include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this press release.