Continental Minerals Corporation - Live Customized Report

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Xietongmen Exploration & Resources

Exploration

Continental initiated exploration at Xietongmen in 2004. A major program began in 2005, comprising 10 square kilometers of geological mapping, sampling, and completion of 63 diamond drill holes. Long intervals of continuous, strong copper and gold mineralization, averaging over 200 meters in length, were intersected in the 62 drill holes completed in the Xietongmen deposit.

The 2006 program was designed to collect the data necessary for a feasibility study and environmental and social impact assessments that would be required for development of the Xietongmen deposit. Work included geotechnical and hydrological drilling, metallurgical testing, capital and operating cost studies, and environmental and socioeconomic baseline studies. Additional exploration work was also done to assess other targets on the property. To the end of 2006, 220 drill holes had been completed, mainly focused on delineation of the Xietongmen deposit. Mapping and sampling identified additional areas with exploration potential. Significant copper-gold mineralization was intersected in two drill holes at Newtongmen.

In 2007 and 2008, work was directed toward engineering studies of Xietongmen and exploration drilling in 33 holes at the Newtongmen deposit. Some 91 holes were drilled for geotechnical and water monitoring purposes in areas of proposed infrastructure for Xietongmen mine development.

Currently work is directed toward ongoing community engagement and environmental monitoring and baseline data collection programs at site in parallel with engineering design and other preparations for construction to begin at Xietongmen once final mining permits are received.

Resources

The Xietongmen deposit is a high-grade porphyry copper-gold deposit with excellent internal consistency and lateral and vertical continuity. The northwest-trending deposit extends over an area of 1,400 meters by 500 meters and averages 300 meters in vertical depth. It remains open to the northwest.

XIETONGMEN DEPOSIT MINERAL RESOURCES at 0.15% Cu Cut-off
Category	Tonnes millions	Cu %	Au g/t	Ag g/t	Contained Cu millions lb	Contained Au millions oz
Measured Indicated Total	197.5 22.3 219.8	0.44 0.37 0.43	0.62 0.42 0.61	3.95 2.54 3.87	1,911 182 2,092	3.94 0.37 4.31

The Xietongmen estimate was prepared in February 2007 by Continental staff and audited by Ian Chisholm, P.Eng., of Aker Kvaerner Engineering, an independent Qualified Person.
Contained metal calculations assume 100% recovery.

Drilling so far at the Newtongmen deposit has outlined a northwesterly-elongated zone, about 850 meters long by up to 450 meters wide. Copper and gold mineralization extends from surface to the limit of drilling at 713 meters in depth. The deposit remains open in three lateral directions and at depth.

NEWTONGMEN DEPOSIT MINERAL RESOURCES
Category	Cut-off % Cu	Tonnes millions	Cu %	Au g/t	Ag g/t	Contained Cu millions lb	Contained Au millions oz
Indicated	0.30 0.20 0.15	186.5 388.9 486.0	0.40 0.32 0.29	0.22 0.18 0.17	0.99 0.87 0.82	1,660 2,770 3,150	1.30 2.30 2.70
Inferred	0.30 0.20 0.15	84.4 264.8 379.3	0.37 0.29 0.25	0.06 0.07 0.07	0.13 0.12 0.12	680 1,670 2,110	0.17 0.57 0.80

The Newtongmen estimate was prepared in May 2009 by Greg Mosher, P.Geo., of Wardrop Engineering, an independent Qualified Person. Wardrop considers a threshold cut-off grade of 0.2% copper is appropriate for the initial estimate.
Contained metal calculations assume 100% recovery.

Sampling and Analytical Procedures

All programs are carried out under the supervision of qualified persons. Geologists log and lay out all samples. Drill core is sawn and half-core samples are taken and crushed at the logging and sampling facility in Rikaze, and the remaining half of the drill core is retained at the core facility.

For the feasibility study drilling in 2005-2006, sample preparation was completed in a separate area under the supervision by Acme Analytical Laboratories personnel. In 2007, sample sawing, drying, crushing and splitting was supervised by Continental personnel.

The crushed samples are split and the 250 g splits packed in wooden crates with steel strapping, and shipped by Continental's truck to Lhasa airport and then by commercial air freight to Acme's ISO 9001:2000 accredited laboratory in Vancouver BC, which performs the sample pulverization and assaying for the project. Gold analysis is by 30 g Fire Assay fusion with an Inductively Coupled Plasma-Emission Spectroscopy (ICP-ES) finish. Copper assays are done by four acid digestion with an ICP-ES/ICP-Mass Spectroscopy finish. Continental includes standards, blanks and duplicates in addition to the laboratory's internal quality control work. Duplicate analyses are completed by ALS Chemex of North Vancouver, British Columbia. The pulp samples were returned after analysis for long term storage at a secured warehouse facility at Surrey, BC.

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This page was created on Thu Sep 9, 2010 at 7:15:58 AM Pacific Time.