Jinshan Gold Mines Inc. announce final results from its Phase III diamond drilling program at the Dadiangou Gold Project in Gansu Province, central China. Highlights include 34.0 metres (26.1 m true width) of 3.4 grams per tonne (g/t) gold from hole DDG08-09 and 24.0 metres (14.1 m true width) of 1.6 g/t gold from hole DDG08-06. The majority of Phase III drill holes returned results consistent with those from previous drilling and data from infill holes in the central portions of the Dadiangou Main Zone (DMZ) will be used to update the current Inferred Resource of 26.3 million tonnes at 0.92 g/t gold for a total of 778,000 ounces of gold (see January 31, 2008 press release).
“Hole 9 returned the best intercept to date from the Dadiangou Project and holes 1 and 2 extended the known mineralization to over 4 kilometres in strike length” said Jinshan’s Vice President of Exploration, Keith Patterson. “We are excited to be working on a resource update which we anticipate before year end.”
The Phase III drill campaign was primarily designed to decrease the spacing between drill holes and underground sampling within the central portions of the DMZ (see attached map, available at the following link: http://media3.marketwire.com/docs/jin1023.pdf). The near-surface portions of the central zone have now been drilled off to approximately 65 by 65 metre spacing. In addition to the infill drilling, two holes (DDG08-01 and 02) were located to target the western extension of the Dadiangou West Zone and increased the known mineralized strike length by over 650 metres to approximately four kilometres. Both holes encountered low-grade mineralization (0.45 g/t gold over 4.6m and 0.42 g/t gold over 3.6m, respectively), however they clearly demonstrate the strong continuity of the mineralized shear zone.
Jinshan will now use the results of the 68 diamond drill holes completed to date with results from trenching and underground sampling to produce an updated National Instrument 43-101 compliant resource estimate. The resource estimate is expected to be released before year end. During Phase III drilling, 17 diamond drill holes were completed for a total of 3,045 metres which brings Jinshan’s total drilling to date at Dadiangou to 14,910 metres in 68 drill holes. Once the revised Resource Update is complete, Jinshan will focus on the completion of a preliminary economic assessment of the project and pushing forward with the studies and documents needed to support a Mining License application.
Highlights of significant intercepts are presented below, a full table of all significant results and a map showing all collar locations are available at www.jinshangoldmines.com.
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 with the Northwest Industrial Nuclear Economic Technical Company (the Chinese partner) 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.
Jinshan 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. Jinshan’s shares are listed on the Toronto stock exchange under the symbol JIN. China National Gold, a Chinese state-owned enterprise and the largest gold producer in China owns approximately 42% of Jinshan’s shares.