Minco Gold Corporation - BYC Gold Project

		Overview

		BYC Gold Project

		Changkeng Gold Project

		Xiaoshan Gold Project

		Gobi Gold Project

		Gold Bull Mountain

		Yangshan Gold Belt

		White Silver Mountain Spin-Off

		43-101 Technical Reports

Location

The BYC project is located about 50 km northwest of Baotou, which is 750 kilometres west-northwest of Beijing, in Inner Mongolia, China. Sealed roads connect Baotou to the project area and a rail line connects the project to the national railway system. An international airport is located in Baotou with regular direct service to Beijing.

Work Program

Detailed structural geological mapping to identify controls on gold mineralization
Test structural targets by surface trenching

Ownership

Three contiguous permits with a total area of 58.1 km2 comprise the BYC gold project. On November 18, 2002, Minco entered into an agreement with the Inner Mongolian Bureau of Non-Ferrous Metals and Exploration, the license holder of the BYC gold project, to acquire a majority interest in the project. Huayu-Minco Mining Co. Ltd. was formed in July 2003 to serve as the joint venture company holding the interests of Minco and the Inner Mongolian Bureau of Non-Ferrous Metals and Exploration for the BYC gold project.

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In November 2003, Minco entered into a joint venture letter agreement with New Cantech Ventures Limited (New Cantech), whereby New Cantech acquired the right to earn a maximum interest of 60% in the BYC gold project by spending approximately $1.76 million (12 million RMB) on exploration over a three year period. On October 3, 2006, New Cantech and Minco signed a termination agreement and pursuant to the BYC Option Agreement, New Cantech re-conveyed to the Company all of its rights and interest in and to the BYC Property.

Background

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The original discovery of gold was made in late 1980's through follow-up of a major regional geochemical gold anomaly. More than 100 surface gold showings, including those of the BYC project were delineated in an area 12 kilometres long and 3 kilometres wide. Some of the showings returned very high values.

The new gold discoveries in the district triggered widespread artisanal mining. Illegal local miners had removed approximately 400,000 tonnes of near surface oxide ore before being expelled by government authorities as part of a nation-wide law enforcement program.

Geology and Mineralization

The BYC gold project is located at the central section of the north margin of the North China Platform and falls within the eastward extension of the Tianshan-Xiangan metallogenic zone. The zone hosts several important gold-producing regions in North China and extends into the republics of the former Soviet Union where several world-class gold deposits have been developed.

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The BYC gold occurrence is a structurally controlled shear-hosted auriferous vein system developed at or near the contact of a Mesozoic granodiorite. Host rocks to the granodiorite are metamorphosed and highly strained early Proterozoic sedimentary and volcanic rocks. All principal-mineralized zones on the BYC permits are within well-formed planar brittle-ductile shear zones with very good surface continuity. Based on the distribution of the auriferous veins at surface, at least four major structural and auriferous zones are identified with strike lengths ranging from 700 metres to more than 1,500 metres. The grade of auriferous veins occurring in the Proterozoic sedimentary and volcanic sequence is generally from 1 gram per tonne to 8 grams per tonne gold. Higher grades were detected where the auriferous veins occur in the granodiorite intrusion (the inner contact zone) with significant values as high as 7.1 grams per tonne gold over 9 metres and 14.5 grams per tonnes gold over 4 metres.

Gold-bearing low-sulphide, shear and tension related quartz veins of the North zone occur where a regional shear zone cross-cuts irregular bodies of K-spar rich Mesozoic granite. The area of interest represents the northeasterly extension of a historical mining zone.

Results

In 2004 and early 2005, a structurally-controlled gold mineralization zone was defined within the Dongwufenzi permit on the northern part of the BYC Gold project area. The mineralized zone is about 2km along strike and characterised with intersections of 1-5 g/t gold zones in numerous trenches and widespread artisanal mining pits along the zone.

In 2004, a total of 1,434.5 metres of drilling was completed in six holes at the west end of the zone where the largest artisanal mining pit is located. Gold mineralization was intersected in five holes. Two high-grade zones of 73g/t gold over 1.5 metres and 38g/t over 1.7 metres were intersected in hole number 6.

HOLE #	DIP	LENGTH	FROM (M)	TO (M)	INTERVAL (M)	GEOCHEM ASSAY ppb Au	FIRE ASSAY Gm/t Au
1 Includes	-47	294.5	132.5 132.5	285.2 159.4	152.7 26.9	682 737	0.633 0.947
2	-66	240	58.7	71.4	12.7	365	1.12
4 Includes Plus	-47	321	241.8 246.5 317	292.4 274.6 318.5	50.6 28.1 1.5	522 706 1448	1.01 1.54 4.92
5 Plus	-47	252	61.2 97.1	73.5 98.6	12.3 1.5	488 1304	0.34 1.36
6 Plus	-50	147	70.0 97.7	71.7 99.2	1.7 1.5	146.0 54210	38.08 73.70^*

(*) Average of two fire assays.
Note: Hole #2 was drilled below the plunge of the mineralized zone. True widths have not been determined at this stage.

The intervals reported consist of NQ-2 and BQ core sizes which were split by diamond saw and shipped to the Institute of Geophysical and Geochemical Exploration laboratory in Langfang, Hebei Province for sample preparation and geochemical analysis. This laboratory is certified by the China National Accreditation of Registrars to be International Organization for Standardization ("ISO") 9001:2000 compliant. Prepared pulps of the same samples were then sent to The Sub-Institute of Analytical Chemistry, Beijing General Research Institute of Mining and Metallurgy in Beijing for fire assaying. This laboratory has been assessed by the China National Accreditation Board for Laboratories and found to be compliant using standards identical to ISO requirements.

In May and June of 2005, Minco geologists conducted surface sampling over the artisanal mining pits at the east section and found that the mineralized zones at surface are generally from 2 to 6 metres in width with gold grades ranging from 1.2 g/t to 4.98g/t.

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In the fourth quarter of 2005, four holes were drilled for a total of 1,323 metres to test new areas of mineralization exposed by illegal mining activity to the northeast strike extension from the major artisanal pit. All 4 diamond drill holes intersected the 100m-wide shearing zone which hosts gold mineralization within the altered and sheared granite in the north zone. Eight gold mineralization zones were intersected within the wide shear zone and one individual gold zone ranged from 1.4m to 4.7m in width and contained 1g/t to 10.46g/t gold. This confirmed that the gold mineralization within the shear zone extended for more than 2,000 metres along strike at both surface and depth.

The next step will consist of detailed structural geological mapping by an experienced structural specialist to identify structural controls on gold mineralization. Structural targets will then be tested by surface trenching.