Sino Gold has released an initial White Mountain reserve of 434,000 ounces at 4.2 grams/tonne gold.

Sino Gold CEO Jake Klein will showcase the company"s China operations at The ASIA Miner Investing in Mining Conference on May 7-8 in Sydney. For more information go to the Investing in Mining page on this website.

The White Mountain ore reserve estimate is based on a mineral resource estimate of 7.7 milltion tonnes at 3.4 grams/tonne gold containing 846,000 ounces.

Approximately 77% of the ounces contained in the measured and indicated resrouce converts to the proved and probably reserve. The Cut-off grade for the mineral resource of 1.0 gram/tonne gold is lower than the cut-off grades (2.0 grams/tonne ad 2.3 grams/tonne gold) for the ore reserve.

Sino Gold chief executive officer Jake Klein says, "White Mountain is shaping up as a robust, simple underground mining operation.

"Relevant studies and permitting applications are now being progressed in order to meet the aggressive objective of brining the project into production in late 2008.

"Drilling at White Mountain is getting underway. The 2007 drilling program is aimed at increasing the current resources and reserves."

Preliminary studies at White Mountain indicate the $US50 million operation will be developed as an underground mine, with a standard Chinese design processing plant utilizing a simple grinding/CIL flowsheet. It will have a throughput of 600,000 to 700,000 tonnes per year producing 70,000 to 80,000 ounces per year.

"We have set an ambitious schedule to bring White Mountain into production," Jake Klein says.

"Development of White Mountain may start before the end of the year if drilling and feasibility work continues to return positive results, as well as required approvals being received quickly."

Production from White Mountain should increase Sino Gold's annual gold production to about 250,000 ounces in 2009, excluding any expansion of Jinfeng's processing plant.