Tue May 15, 2007 Mining Area Scoping Approved For Continental's Xietongmen Project
May 15, 2007, Vancouver, BC - Continental Minerals Corporation ("Continental" or the "Company") (TSX Venture: KMK; OTCBB: KMKCF) announces that approval has been received from the central government's Ministry of Land and Resources for the Mining Area Scoping ("MAS") for the Xietongmen Project in the Tibet Autonomous Region of China. The MAS approval is a very important step in the process to obtain a mining license.
The Xietongmen porphyry copper-gold deposit was discovered by drilling in 2005. A comprehensive program centered on the deposit commenced in 2006, designed to collect the data necessary for an international feasibility study, environmental and socioeconomic assessments and Chinese mining license application. International consulting groups and Chinese design institutes are engaged in these studies, which are targeted for completion in 2007.
The mining license application requirements include the Mineral Resources Report; the Mine Area Scoping; the Mineral Resources Development and Utilization Plan; and the Environmental Assessment with Social Component (ESIA). These reports integrate assessments of land use; the geological environment and mineral resources; the technical and financial aspects of mining and treating the mineralization; the health and safety aspects of the potential operation; water use and water and soil conservation; and the environmental and social aspects of the project. Several of the reports are utilized in more than one component of the application. The information in the items above will also comprise the bulk of the international feasibility study and ESIA.
The Mineral Resources Report was submitted and approved by the Ministry of Land and Resources in late 2006, confirming of the size of the deposit. This information was utilized in the MAS to estimate the production rate and life of the operation in order to delimit the surface area and depth of development and determine the geographic coordinates of the future mine.
President and CEO Gerald Panneton said: "Acquiring the MAS approval demonstrates the positive attitude of the government towards an investment in China's minerals and metals industry. Achieving such a milestone in this timeframe reflects the diligence with which our staff and consultants have been working to advance the geological, engineering, environmental and socioeconomic studies for the project. This work is proceeding in parallel with our community engagement and government liaison programs. We are committed to working with the local communities and government agencies to design an operation that will meet both Chinese and international standards, and contribute to the economic development of the region."
For additional details, please visit the Company's website at www.continentalminerals.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
Gerald Panneton President and Chief Executive Officer
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