September 29, 2009 – Jiulian Resources Inc. (“Jiulian” or the “Company”) (TSXV: JLR) is pleased to report that field work has started on its newly optioned Hawk property and the exploration timeline has already been advanced. Pursuant to an option agreement with Happy Creek Minerals Ltd. (“Happy Creek”), which was approved by the TSX Venture Exchange (“TSXV”) on August 25, 2009, the Company has an option to acquire up to a 65-per-cent interest in the Hawk project, which is located 333 kilometres northeast of Vancouver in the south-central Caribou region of British Columbia.
The Hawk property is a porphyry copper gold prospect that covers 1976.5 hectares with excellent infrastructure including road access and close proximity to rail, highway and hydroelectric power. The Hawk property exhibits characteristics of copper-gold replacement/skarn mineralization and low-grade, bulk tonnage, alkalic porphyry copper-gold mineralization. The property is underlain primarily by favourable volcanic rocks of the Upper Triassic to Lower Jurassic Nicola Group cut by numerous granodiorite and syenitic dykes, and a zoned gabbro to hornblende diorite stock. Alteration is widespread and is favourable for porphyry copper gold deposits. The more intense zones of alteration commonly host bornite and/or chalcopyrite mineralization.
Known deposits in the project area include the Mount Polley copper-gold-silver mine, located 90 kilometres northwest of the Hawk property. Mount Polley is an excellent example of an economic alkalic porphyry system that is also located in the Quesnel Terrane. Planned production at Mount Polley for 2009 is 42 million lbs copper, 53,000 oz gold and 231,000 oz silver. Mount Polley proven and probable reserves estimated [Jan 1/09] are 46.2 million tonnes grading 0.34% copper, 0.29 g/t gold and 0.95 g/t silver. The current mine life is to the end of 2015.
Another producing mine in the project area is Taseko Lake’s Gibralter Mine, located 119 km northwest of the Hawk property. For the first six months of 2009, Gibraltar has produced 39.0 million pounds of copper and 404 thousand pounds of molybdenum, representing a 46% increase in copper production compared to the same period in 2008.
The QR gold mine, located 110 kilometres northwest of the Hawk property is another known deposit (now on care and maintenance) with mineralization hosted by Nicola Group volcanics cut by Early Jurassic intrusive and porphyritic rocks.
The Boss Mountain molybdenum mine, another former producer, is located only 26 kilometres north of the Hawk property. Mineralization at Boss Mountain is similarly hosted in Early Jurassic intrusive rocks that cut the Nicola volcanics. Molybdenum mineralization is contained within quartz veins and in breccia bodies within the granodiorite phase of the batholith. Three phases of breccia, known as Phase 1 Breccia, Quartz Breccia and Phase III Breccia, are found at the deposit.
Geological inspection of the Hawk Property by Jiulian personnel conducted in September of 2009 has shown that more varieties of rock units also occur and there is substantially more outcrop on the property than first believed, which include lapilli tuff, intrusive stock/dike with disseminated sulfide and hydrothermal breccia. The presence of bigger clear-cut area and more extensive outcrops as well as more logging road-cuts mean that the previously proposed trenching program will not be necessary to be conducted immediately. The Company is currently conducting the detailed geological mapping and sampling including soil and lithology.
The extension IP lines may also not be necessary due to the additional ground work. This will allow a significant reduction in the exploration timeline, with diamond drilling now anticipated as the next step.
Past work on the Hawk property was focused on the western side of the property in the vicinity of the Knob prospect, which is a vein showing with pyrite, magnetite, bornite and chalcopyrite mineralization. Chip sampling here returned values up to 0.88% Cu and 1.07 g/t Au over 5.0 metres and preliminary drilling of the showing yielded encouraging copper and gold results including a 3.0 metre intersection in hole DDH 82-4 that graded 0.79% Cu and 1.73 g/t Au.
Exploration completed in 2007-2008 on the Hawk property by Happy Creek included grid-based soil geochemical sampling, property-scale bedrock mapping, and 3D Induced Polarization (“IP”) and Magnetometer surveying across the central part of the claim group. Their work also included preliminary diamond drilling of three holes, all of which were located within 500 metres of the Knob vein showing. However, the 3D IP survey identified a broad chargeability high anomaly at depth some 2 kilometres from the Knob showing in the southeast part of the grid that extends for more than 1500 metres in a northerly direction. The Magnetometer survey identified a strong magnetic low anomaly which is also in the southeast part of the grid that corresponds with the IP chargeability high. The area of the coincident chargeability-magnetic anomalies is also underlain by a copper geochemical anomaly and is underlain by intensely and pervasively propylitic-altered volcanics. These features are, in part, consistent with a classic porphyry system and suggest that there is potential for the presence of a buried bulk tonnage copper-gold deposit and continued evaluation of the Hawk property, primarily for alkalic porphyry copper-gold mineralization, was recommended in Jiulian’s May 2009 National Instrument (“NI 43-101”) 43-101 Qualifying Report.
Jiulian is well funded, with $1.6 million currently in the treasury, and is optimistic about their exploration of the Hawk property, which will focus on the much larger tonnage potential of disseminated copper and gold mineralization on the central and eastern portions of the property identified by the geological, geophysical and geochemical work.
The technical information in this news release has been reviewed J.Paul Sorbara, M.SC., P.Geo,. who is a Qualified Person as defined by NI 43 101 and a director of Jiulian.
About Jiulian Resources
Jiulian Resources Inc. is a TSXV Tier 2 issuer (TSXV JLR) with offices in Vancouver, British Columbia. The Company’s Board of Directors includes experienced and dedicated professional geologists, businessmen and accounting personnel. The Company is currently exploring its Hawk project, located in the prolific Caribou region of British Columbia, for large tonnage porphyry style copper and gold mineralization. Assays are being done using traditional methods at well qualified and widely used labs in British Columbia.
For further information, please contact:
X. Charlie Cheng, Chief Executive Officer and Director of JLR at 604-639-4418 or by email:
ON BEHALF OF THE BOARD OF DIRECTORS
“X. Charlie Cheng”
X. Charlie Cheng, Chief Executive Officer, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.