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Monday, 26th September 2005 (7278 views)

Following an independent mine engineering and development study, Jinshan Gold Mines has announced that the results support the development of a commercial mine at the CHS (217) gold project in Inner Mongolia, China.

The proposed mine would be able to produce 120,000 ounces of gold each year for the first seven and a half years at an estimated cash cost of $232 an ounce.

In the first two to three years, shallow run-of-mine oxide mineralisation mining will take place, followed by deeper sulphide mining and then a crushing circuit to improve the leach recoveries of gold.

The study used April 2005's findings about the measured and indicated resource base, which is estimated to be 82.7 million tonnes with a gold grade of 0.82 g/t. It did not take into account the inferred project resources, which stand at 36.5 million tonnes grading 0.89 g/t of gold.

A 4,500-metre drilling program is being carried out to upgrade the inferred resources to measured and indicated status.

A final feasibility study is also currently being undertaken and should be completed by the second quarter of 2006.

 

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