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Inter-Citic Minerals Inc.

SYMBOL: .TSX: ICI Website: www.inter-citic.com Corporate Contact Information Phone: 905-479-5072 Email: invest@inter-citic.com

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Company News  (Oct 6, 2009)  Experienced Mining Engineer Malcolm Swallow Joins Inter-Citic Team to Lead Dachang Mine Development  ...Read More

Overview

Toronto-based Inter-Citic Minerals Inc. (TSX: ICI) is a gold exploration and development company, developing what could be one of China’s largest open-pit gold deposits. Inter-Citic’s 279 sq km Dachang Gold Project in Qinghai Province, People’s Republic of China is in its fifth season of exploration and development with 50,000 meters of drilling underway in 2008.

The total NI 43-101 compliant Inferred Mineral Resource Estimate at Dachang now stands at 2.9 million oz Au contained (approximately 25 million tonnes with an average grade of 3.6 gpt Au), with further drilling underway aimed at resource expansion. Gold mineralization at Dachang begins at surface and has not been significantly drilled below 150 meters, and numerous known areas of surface gold mineralization on other parts of the property have the potential for further discoveries.

Inter-Citic Corporate Video: www.nettv.tv/intercitic

People

James J. Moore
President & CEO

Possessing an entrepreneurial nature, Mr. Moore has spent the past twelve years of his career working in international businesses all of which have been directly and exclusively involved in post-communist era markets.

Since 1997 Mr. Moore has worked closely with the Hong Kong based investor groups who have supported Inter-Citic. An abundance of his work has focused on developing key relationships within the mineral industry in China. Over the course of this period he has witnessed first-hand the continuing evolution of China's mining industry as well as becoming well accustomed to dealing with the subtleties and nuances of the Chinese business culture. Over the past seven years he has visited the Peoples Republic of China on business on over 50 occasions. On average, he spends up to a third of every year in China on business. Mr. Moore is credited for assembling the Inter-Citic team and maintaining the company's focus on the China mineral industry.

Prior to his work in China, Mr. Moore held the position of Vice-President, Finance and Operations of the Klon Group of companies. The Klon Group was a very successful start-up oil-trading group with offices in Toronto, Boston and Moscow, controlled by citizens of the former Soviet Union who were operating at the forefront of the Perestroika reform movement. In each of the four years Mr. Moore was with The Klon Group the company had profitable operations with revenue in excess of US$100 million.


Lou Pasubio, C.A.
Vice President, Finance and CFO

Mr. Pasubio is the CFO of the Company and has executed the responsibilities of that position for the past five years. He works closely with the CEO in all phases of strategic planning associated with Inter-Citic's business development initiatives.

Mr. Pasubio is responsible for the implementation of all China Joint-Venture contracts as well as managing all ongoing business affairs between Inter-Citic and its China based partners and suppliers. Mr. Pasubio spends a significant portion of his time in China dealing with the company's business affairs.

Mr. Pasubio has been a Chartered Accountant for more than twelve years. After four years with the public accounting firm of Arthur Andersen, LLP, followed by four years in independent public practice, Mr. Pasubio left Canada for the Turks & Caicos Islands in 1998 to help establish a construction and development firm specializing in custom designed homes and structures utilizing ultra-modern building technologies.


Stephen Lautens
Vice President - Corporate Communications & General Counsel

Mr. Lautens is responsible for investor relations and communications for Inter-Citic. He has an extensive background in communications, business and law. For the past ten years Mr. Lautens has provided communications and strategic management advice to a wide variety of large corporations, governmental bodies and the not for profit sector. Mr. Lautens worked previously with Inter-Citic, including acting as an advisor on a mining-related technology project in China and as part of the Team Canada international trade delegation that accompanied the Canadian Prime Minister to Beijing and Shanghai in February 2001.

Mr. Lautens is a lawyer who was called to the Bar in 1988. Before leaving for a career in business in 1998, he had his own litigation practice for ten years where he appeared at all levels of court including the then Supreme Court of Ontario, the Divisional Court and the Court of Appeal. In 1997 he served as president of Toronto's prestigious Lawyers Club. Prior to the practice of law, Mr. Lautens worked for two years as a Special Assistant to a federal Cabinet Minister in Ottawa, Canada, where his responsibilities included communications, policy, speech writing and cabinet briefings for the Minister.

Garth A. Pierce
Vice President, Exploration

Mr. Pierce is a geologist with more than thirty years of exploration and project management experience, including 17 years with Noranda. He played a significant role in Noranda's 1982 Hemlo acquisition and development as well as Hemlo Gold's 1989 Eagle River gold discovery.

Mr. Pierce left the Noranda Group in 1993. He has spent much of the last ten years active in evaluating gold and diamond prospects in the Canadian Shield. In addition to his work on Canadian precious and base metal deposits, Mr. Pierce has also managed advanced gold projects in the United States and Norway.

For the past four years Mr. Pierce has directed the Company's exploration at Dachang.

Patrick Gorman, M.Sc., C.Eng., Eur.Ing. MCCMM
Project Development Manager

Mr. Patrick Gorman, through his company Puma Resources, will be overseeing the preparation and drafting of a Preliminary Scoping Study for Inter-Citic’s Dachang Gold Project. Mr. Gorman is a competent/qualified person as defined by the NI-43-101 and AIM rules. He has over thirty years experience in the mining industry in all aspects of operations, development and consulting. His extensive work around the globe includes managing the scoping study prepared on Jinshan Mining’s 217 Project in China.

Mr. Gorman has managed development programmes, pre-feasibility and bankable feasibility studies, conceptual evaluations, scoping and acquisition studies, post privatization support and technical audits for project financing. Mr. Gorman’s feasibility study experience is extensive and includes Escondida copper in Chile, Rebecca gold in Zimbabwe, Loma de Niquel in Venezuela, Castellanos lead/zinc in Cuba. He has also led long term technical re-development and co-operation programmes at Trepca Lead/Zinc in Kosovo, Jiangxi Copper in China and Buryatzoloto Gold in Russia.

Mr. Gorman is a Member of the Institution of Materials, Minerals & Mining and holds a B.Sc.(Honours) degree in Mining Engineering from Imperial College of Science and Technology, University of London and an M.Sc. degree in Mining Engineering from the Colorado School of Mines, Golden, Colorado USA. He is a Chartered Engineer (C.Eng.), a European Engineer (Eur.Ing.), and holds a Mine Managers Certificate of Competency for Metalliferous Mines of South Africa.

Property

Inter-Citic's Dachang Gold Project is a 279 km2 property in the Qinghai Province of Western China. It is a structurally-controlled sulphide gold deposit hosted in a sedimentary basin, located on the Qinghai Plateau, in a high alpine environment characterized by rolling hills.

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Under a 30-year joint venture agreement with the Qinghai Geological Survey Institute (QGSI – the provincial geological survey body), Inter-Citic has a fully-vested 83% interest in the property, with 17% belonging to QGSI. Inter-Citic has a further option to increase its total interest to 90% at pre-feasibility.

The system of gold mineralization at Dachang is very large and the area has been the site of extensive gold placer working in streams over the past two centuries, however, it had not been extensively explored with modern methods prior to its acquisition by Inter-Citic.

Inter-Citic has taken more than 50,000 soil samples over the entire property since 2004, identifying through soil geochemistry well over 50 major new gold anomalies on the property in addition to the current NI 43-101 resource on the Dachang Main Zone (“DMZ”).

Following the completion of a 28,000m drill program in 2007, the Dachang gold project now has a total inferred mineral resource of approximately 2.9 million oz Au contained (approximately 25 million tonnes with an average grade of 3.63 gpt Au) as reported in the Company's the press release of April 10, 2008. The supporting independent technical report was filed under NI 43-101 on May 26, 2008.

Our interactive 3D drill hole tool: http://www.corebox.net/properties/dachang/

Current Total Resource at Dachang:

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At present, up to six drills are operating at Dachang, working on both infill drilling to further define the existing 43-101 inferred mineral resource estimate on the DMZ in preparation for a scoping study, as well as additional drilling in new areas focused on resource expansion. Approximately 25,000 meters of Inter-Citic’s current 50,000 meter drill program is aimed at increasing a large percentage of the existing inferred resource inventory to an indicated level. This work will require proper wire frame modeling and engineering evaluation of the resource, and will be the primary focus for the initial phase of work at Dachang. Exploration drilling will continue however with the remaining 25,000 meters of drilling to focus on the eastern extensions of the DMZ, internal areas of the DMZ open to expansion and new geochem targets. While the DMZ mineralization remains open at depth and to the east; further testing of this structure will primarily focus on shallow potentially bulk-mineable mineralization.

The Dachang property consists of several exploration license areas. They have all been renewed by the Company as they have come due in regular course. The business license for the Dachang Gold Project is currently valid to December 26, 2033.

Politics

China has recently surpassed South Africa as the world’s largest gold producer, and is becoming one of the larger gold consumers. China’s Ministry of Land and Resources also recently restated it commitment to encourage foreign investors and companies in mineral exploration in its “Rules of Administration for Foreign Invested Companies of Mineral Exploration” published July 31, 2008 (China Land and Resources News).

As part of its official plan to encourage the development of its western provinces, provinces like Qinghai, where Dachang is located, has preferential tax policies to encourage foreign investment.

Paper

Shares outstanding 82.5 million
Warrants outstanding 0
Options outstanding 4.1 million
Working capital $14 million (CAN)(at year end - Nov. 30/08
52 Week High $2.19 (CAN)
52 Week Low $0.17 (CAN)

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