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Monday, 18th December 2006 (3052 views)

China Goldmines has reported high grades of gold found at its Shenjiaya prospect in China.

The results of surface diamond drilling and underground channel sampling have returned high gold values according to the company. Particularly high grades came from quartz veins found at the Jinzhuwan, Xianglu and Zhengjiashan mines.

China Goldmines now estimates that its preliminary inferred resource has risen by 278,000 tonnes of gold with an average grade of 3.95 grams of gold per tonne for 35,000 ounces.

Clive Donner, the chairman of China Goldmines, said: "We are very pleased to announce that since the commencement of our exploration activities in April of this year the results to date far exceed our expectations."

He added that geological results continually indicate high grades and thus demonstrate a profitable mining operation.

The firm's initial drilling has also indicated that the gold mineralisation continues beyond their 5 km strike length project, with four holes identifying additional mineralisation.

China Goldmines also reported pretax losses for the year ending June 30th as it entered into exploratory work at the project despite being in a joint venture with Chinese partner Brigade 407.

 

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