Majestic Gold Corp. - Song Jiaguo Project

Gold in China Sawayaerdun Project

Song Jiaguo Project

Project Details Song Jiagou Resource Estimate

Location:

Location Map
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The Song Jiaguo Property is located on the Jiaodong Peninsula of Shandong Province in the People's Republic of China.

The property lies on the western edge of the Muping-Fushan Gold Belt, which hosts 20% of the known gold deposits on the Jiaodong Peninsula.

Gold production from the entire peninsula accounts for over 25% of China's annual gold production. (Approx. 1 million oz/yr)

Gold deposits in the belt are commonly controlled spatially by fault zones.

To the south of the property, the Pengjiakuang Gold Deposit (>650,000 oz) occurs in the same structural environment within Cretaceous Laiyiang conglomerates which underlie the Song Jiaguo Property.

Project Highlights:

Visible gold in DDH SJ05-11
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Situated in well known gold belt
Recent results indicate potential bulk mineable resource (Song Jiaguo)
Ave 6 m @ 1.6 g/t from sampling along each of the 4 underground cross-cuts
Historical High Grade Resource* 0.35 Mi oz Au reported on license (*Not NI 43-101 compliant)
- 1.8 Mi tonnes @ 6.76 g/t (1998 Shandong 3rd Geological and Mineral Institute)
- Open at depth
- Current production 120 tonnes per day mining and milling operation
Joint venture with Shandong Yantai Muping Gold Mine (production company)

Geology and Mineralization:

Gold mineralization on Song Jiaguo is hosted by a series of steeply dipping, sub-parallel north-northesat trending fault zones within upper Cretaceous conglomerates overlying Proterozoic granitic rocks. The area of Song Jiaguo is interpreted as being the higher levels of a mesothermal system where gold bearing fluids have mineralized the matrix of the host conglomerates. The gold bearing quartz veins would then likely continue to much lower levels in the system.

Chinese estimates of 1.7 million tonnes at 6.76 grams per tonne are reported from the high grade fault zones to depths of 250 metres. Mineralization remains open to depth and indications in drill holes are that it continues for over 100 metres down dips. Pilot mining by Muping Gold Mines at 120 tonnes per day accesses the ore from four underground levels.

The potential at Song Jiaguo lies at depth and in sub-parallel structures to the known resource which remain to be tested and in the low grade bulk tonnage potential within the matrix of the host conglomerates.

541 metres of channel samples in 4 cross cuts
Average 1.5 g/t over 95.4 metres (incl. 2.6 grams/tonne over 47.5 metres)

Results indicated bulk-mineable target

2005 Exploration Program:

26 holes drilled totaling 7,300 metres
Tested near-surface and down-dip extension of near-vertical, high grade mineralized fault zones Large area of gold mineralization confirmed 550 metres long, 500 metres wide, and up to 600 metres deep. Initial resource estimate delivered 400,000 ounces with limited data

2006 Exploration Program:

9 holes drilled on surface totaling 3,700 metres (infill)
Channel sampling L1 and L2
Underground drilling (1000 metres) all levels
Prepared detailed geological / structural model
Updated NI 43-101 Resource Estimate increasing ounces by 285 percent to 1,174,460 ounces from 413,900 ounces (April 26, 2006)

Click to view 43-101 results

Click to view drill results table

2007 Exploration and 2008 Future Plans:

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Resource Expansion/Upgrade

Trenching program to test the grades and widths of the gold mineralization on surface (results pending)
5,000 metres of surface core drilling to further delineate near surface gold mineralization

(50% complete)
Engineering Study

6 month pilot mining/bulk sampling to confirm/optimize recoveries
Evaluate north and south extensions
Engineering studies to further expand production

Additional Upside

Exploration upside in other licenses on Muping Property