The Energy Report - Inter-Citic Minerals Inc. TSX:ICI, ICI.TO

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Inter-Citic Minerals Inc.

TICKER: TSX:ICI, ICI.TO

DESCRIPTION: Inter-Citic Minerals Inc. (TSX: ICI) is a gold exploration company developing the Dachang Gold Project – one of China's largest undeveloped gold resources. Results of a Scoping Study released June 6, 2009, demonstrate positive economics for an open pit mine. At US$750/oz gold, Dachang is estimated to generate an after tax IRR of 40% and an after tax project NPV of US$200 million at a 5% discount rate.

Click here to view Corporate Video and Project Overview.

Click here to view Interactive 3D Drill-hole Visual Presentation

WEBSITE: http://www.inter-citic.com

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

"Yesterday, Inter-Citic reported drill results from drill hole CJV-923, which is 9 km northwest of the Dachang Main Zone (DMZ) and roughly 750 meters east of recently reported Drill Hole CJV-914. The hole was drilled along the edge of the east-southeast striking Carbonate Thrust fault, which spans 18 kilometers across the property. The hole was described as 'definitely in interbedded sediments in the thrust as it collared 40 meters south of trench TC-4701, which gave us two sulphide results in a thick section of carbonates.' The results of this hole indicated 3.34 g/t Au over 12.5 meters, remaining open at depth following the loss of the drill bit at 43 meters below surface. The company did not further assess the hole given that this occurred at the end of the 2009 drill season.

. . .Inter-Citic Minerals Inc. continues to post strong drill results from its 2009 exploration program, enhancing the likelihood of further gold discoveries outside the DMZ. Currently, we maintain our SPECULATIVE BUY recommendation and Cdn$1.65 target price on the shares of Inter-Citic Minerals Inc."
-HAYTHAM HODALY, SALMAN PARTNERS INC. (01/26/10)

"Inter-Citic Minerals (ICI.TO; C$0.92) released results of 80-odd holes at its Dachang gold project during November alone. There was, however, nothing odd about the results. In fact, drill core assays continue to show remarkable consistency in identified mineralization—and entirely new discoveries.

The latest results were from a mix of infill and metallurgical sample holes at the Dachang Main Zone (DMZ) and from new discoveries such as the Placer Valley Zone. It's not easy to do justice to the number of assays or progress on the property by quoting a few drill holes. Inter-Citic after all has seven rigs working. That said, highlight holes include: Hole 737 with 17.3 meters of 2.62 g/t gold (infill), Hole 742 with 10.4 meters of 4.49 g/t gold (infill), Hole 746 with 8.8 meters of 8.26 g/t gold (infill) and Hole 756 with 7.8 meters of 3.21 g/t gold at the Placer Valley Zone.

Not surprisingly, the drilling confirms the reliability of geochem anomalies for marking well-mineralized gold zones at Dachang. The company is in the midst of a 20,000-meter drilling program that it hopes will give it a measured and inferred resource of 2.5 million ounces.

Also not surprising is Inter-Citic's rising stock price, which has climbed steadily from my last buy recommendation at $0.68 in the October issue. In fact, the share price has risen strongly even in the face of gold's recent steep correction. That money is pouring into Inter-Citic, even while money is fleeing the overall sector, is a clear indication that good news may lie ahead. Despite the recent gains, Inter-Citic, is a buy near current levels."
- Gold Newsletter (01/11/10)

"Inter-Citic Minerals (ICI) – I will see ICI's Dachang Gold Project in China by April 2010. As he promised, CEO James Moore got the stock up to $1 from 75 cents. Spot results on drilling are trickling out. The company almost surely will wind up as part of a China portfolio for a China gold miner. Named at $70 cent Canadian."
- Thom Calandra, Ticker Trax (01/04/10)

"Inter-Citic recently completed a 20,000 meter drill program consisting of 10,000 meters of infill at Dachang Main Zone and 10,000 meters of exploration on other targets on its large land position. From this program, hole CJV-861, located 7.5 kilometers northwest of the main Dachang zone, recently returned 9.5 meters grading 2.38 g/t Au and 3.0 meters grading 10.05 g/t Au on either side of a 4-meter-wide fault zone intersected by the hole. The company indicates that assays are pending for more than half of this program, and are expected to be released in January 2010. Inter-Citic plans to release an updated resource for Dachang based largely on this infill drilling by April 2010. Also in 2010, the company will focus on delivering a feasibility study required under Chinese permitting regulations, with expected completion in early 2011.

The Dachang deposit is a near-surface sediment-host gold deposit. The deposit forms an elongated north-west-southeast striking body, with mineralization traced over an approximate 2.5 kilometer strike length. Inter-Citic has legal title to 279 square kilometers of land at the project and its business license is valid until 2033. The project is a partnership with Qinghai Geological Survey Institute, signed in December 2003. Inter-Citic acquired its 83% interest in the project through expenditures of C$5.17 million and must make a cash payment of C$1.57 million upon the issuance of a mining license. Inter-Citic also has the ability to acquire an additional 7% interest in the project."
- Junior Mining Weekly (12/23/09)

"Inter-Citic Minerals (ICI-TSXV; C$0.97) has reported initial drill results from the current 20,000-meter drill program underway at its Dachang gold project in China. Results include 11.9 meters of 4.7 grams per ton gold, an impressive result for a deposit that is right at surface. Six drill rigs are operating on the project in a program that includes infill, step-out and exploration drilling.

The latest results show that the deposit is open, providing scope to expand the existing 2.8 million ounce resource at the Dachang Main Zone.

A trenching program on the Dachang property has identified a 2 kilometer zone of gold mineralization outside of the main zone, with assays up to 3 meters of 10.9 grams per ton gold. Further trenching and then drilling is planned to follow up on those new target zones. This new zone highlights the exploration potential on the extensive property held by Inter-Citic.

Inter-Citic shares are trading at a significant discount to other companies with similar-sized gold deposits. Over time, North American investors will become more comfortable with the idea of investing in a company with a deposit located in China. As Inter-Citic further advances its deposit, the shares should trend higher. Another consideration is that the Dachang Main Zone is very close to a level where a production-oriented company would consider an offer. Expect to see a split off of the mature asset from the exploration property, which would provide an immediate boost in total shareholder value and set up the main deposit for a takeover."
- Resource Opportunities (12/09/09)

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