Chang Shan Hao Gold Mine

Gold production and acquisitions in China.

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China Gold International Resources Corp Profile

JINSHAN GOLD MINES INC., Vancouver, BC. TSX : JN., is a Canadian mining company focused on gold production and acquisitions in China.

The company began producing gold at the CSH Mine in July 2007 and is actively advancing its portfolio of gold exploration properties in China.

China National Gold, a Chinese state-owned enterprise and the largest gold producer in China owns approximately 42% of Jinshan's shares.

Chang Shan Hao Gold Mine

The Chang Shan Hao Gold Mine is one of China's largest gold mines operated by a foreign company, placing Jinshan in an important leadership role. The gold mine is the first step in Jinshan's growth strategy to becoming a significant gold producer in Asia.

It is expected that the mine will achieve nameplate production capacity of approximately 10,000 ounces per month (120,000 ounces per year) in 2008.

Based on the 2007 drilling, gold resources are now estimated at 3.92 million ounces measured and indicated and 1.3 million inferred

Projects & Exploration

The Dadiangou gold system is located in the central part of China in southern Gansu Province within the prolific Qinling Fold Belt. The license covers approximately 15 square kilometres and is owned by the Northwest Industrial Nuclear Economic Technical Corp. (part of the Shaanxi Nuclear Geology Bureau of China). The joint-venture agreement allows Jinshan to earn a minimum of 80% on the property, with the Chinese partner having the option to participate at 20%, or to become diluted.

The total resource tonnage has increased by 39% and the total contained gold has increased by 34% over the previous resource estimate announced January 31, 2008.

The Dadiangou Project now hosts Indicated Resources of 20.0 million tonnes at 0.87 g/t gold for 545,000 ounces of contained gold and Inferred Resources of 16.6 million tonnes at 0.96 g/t gold for 498,000 ounces of contained gold, both at 0.4 grams per tonne (g/t) cut-off grade.

Xinjiang

Jinshan currently holds twelve exploration permits through a Sino-Foreign Joint Venture in which Jinshan holds a 99% share and the partner, Yunnan Geological and Mining Co. Ltd., holds a 1% share in Xinjiang Province, along the prolific Tianshan Gold Belt.

Targets include bulk-tonnage, sediment hosted gold deposits similar to Muruntau, Kumtor, and Jinshan's CSH 217 Gold Mine.

At Jinshan's Changsheng project, geological and sampling crews are currently on site to complete a comprehensive surface program including mapping, grid rock-chip sampling, trench resampling and new trenching.

Crews are also active at the Xingou property, where a program of detailed stream sediment sampling and prospecting is underway to prioritize areas for follow-up work later this year.

Last changed at 19-Jul-2010 04:08PM by AGORACOM