Chinalco Yunnan Copper Resources is targeting down dip extensions of copper and silver mineralization at the Xinzhai Project where diamond drilling has commenced.

Xinzhai is one of four projects in northern Laos that is 100% held by Yunnan Copper Sanmu Mining Industry, a JV company in which Chinalco has the right to earn 51% interest. A 300 meter drilling program at Xinzhai began on January 31st 2012 seeking to test dipping extensions of mineralization defined by trenches and adits.

Mineralization at the project is controlled by a northeast fault, with results from previous testing indicating that the mineralization becomes thicker and higher grade as it dips to the northwest.

The first hole will test Prospect 1 at the Xinzhai tenement, which covers 140 square kilometers in the Phongsaly Province. It will focus on previous mineral results from trench TC15 of 1.7 meters at 0.73% copper and adit PD13 of 19.94 meters at 1.17% copper.

Further drill testing will be carried out at Prospect 1 following analysis of results from the first drill hole. A drilling program will also be designed for Prospects 3 and 5, defined by previous exploration at Xinzhai.

The drilling program at the Jiuzhai Project in the Oudomxay Province of northern Laos is continuing, targeting base and precious metals. Two drill rigs are in operation on the site and aim to finish the 600 meter diamond drilling program by the end of the month.

(Sourced from www.proactiveinvestors.com.au)