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Zen International - All Necessary Government Approvals Granted for Zijinshan Gold-Copper Porphyry Deposit.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--July 7, 1997--Zen International Re(VSE ZQP. ) MOFTEC Approval for Zijinshan

Zen International Resources Ltd. (the "Company" or "Zen") is pleased to announce that the joint venture on its principal project, Zijinshan (Purple Gold Mountain) in the Fujian province of China was approved by the Provincial Ministry of Foreign Trade and Economic Corporation (MOFTEC). A business license from the Administration of Industries and Commerce has also been granted to the joint venture. This allows the joint venture to proceed with exploration and feasibility studies. These approvals follow the approval granted by the Province of Fujian in June 1997.

The issuance of the Business License to Zen authorizes the formation of the joint venture company and enshrines it to operate legally within the PRC. No further approvals are required.

Under the terms of the joint venture Zen will earn up to a 60 percent participating interest in the Zijinshan deposit by investing US$12,000,000 under the following timetable to be spent on feasibility work: -0-
1. Before September 27th, 1997 investment of US$750,000
2. Before July 27th, 1998 further investment of US$4,250,000
3. Before January 27th, 1999 further investment of US$7,000,000


If the Chinese joint venture partner elects not to invest their share of funding required for the construction and mining phase of development, their contributing 40 percent interest reverts to either: (a) a carried 25 percent interest after pay back of Zen's capital investment; or (b) a carried 15 percent interest after the Company has paid back (Pay Back Period) bank loans and Zen's capital investment in the Company. During this Pay Back Period, the Chinese joint venture partner would receive US$2 million per year.

Zen has commenced a program of relogging all 90,000 meters of drill core, selecting samples for check assaying and mapping and reinterpreting the Geology. This will precede a program of assaying unsampled cores, as well as preliminary metallurgical testing leading to completion of a prefeasibility study.


Zijinshan is a porphyry gold-copper deposit. The mineralization occurs in dacites and dacite porphyries intruding a fine grain granite and is associated with breccia dikes, crackle breccias and stockwork veining. There is a gradation from stockwork to hydothermal breccias. Serecite and clay (Alunite and Dicktite) alteration and silicification is pervasive.


Gold mineralization occurs as a gold cap on top of the copper mineralization. Silica flooding is associated with this gold cap which is completely oxidized, copper mineralization in the gold zone is negligible and all the copper mineralization occurs below the depth of weathering. The gold metallurgy is relatively simple. Gold is easily recoverable currently from small scale heap leach operations. The Gold Zone is open in all directions, as the flanks of the deposit have not been explored for gold. Recent check sampling for gold by an independent Canadian laboratory, has confirmed the original Chinese results and indicate a possible significant increase in gold grades. This will require further ongoing testwork to confirm. This zone is at least 800 wide x 800 long meters and the mineralization as indicated by drilling persists to 1000 meters.


More than 90 percent of the copper mineralization, all of which occurs below the gold cap, is chalcocite, digenite and minor chalcopyrite and cuprite. The average total sulfide content is about 5 percent, with 2 - 3 percent pyrite. Metallurgical tests indicate plus 90 percent copper recoveries by flotation. The copper sulfide concentrate is amenable to low cost solvent extraction.


Zen has arranged for an ore reserve estimate which, was prepared by Exa-Min Resource Industry Consultants, Brisbane Australia, using the existing Chinese data. The following results were obtained.



1.0 GPT 29 1.48 GPT 1.4
0.8 GPT 44 1.27 GPT 1.8
0.5 GPT 91 0.94 GPT 2.8
0.3 GPT 141 0.75 GPT 3.4



1.0 percent 13 1.41 percent
0.8 percent 27 1.15 percent
0.5 percent 113 0.74 percent
0.3 percent 356 0.49 percent

-0- ON BEHALF OF THE BOARD OF DIRECTORS Ms. Catherine McLeod-Seltzer, Chairman -0- The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

CONTACT: Zen International Resources Ltd.

Catherine McLeod-Seltzer, 604/684-0003

604/684-0007 (FAX)
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Publication:Business Wire
Date:Jul 7, 1997
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