Construction activities at Jinshan Gold Mines CSH (217) gold project are proceeding on schedule, with commercial gold production expected to begin in the second quarter of 2007.

A mining contract has been signed with China National Railway Corp, a major Chinese mining contractor. Haul road construction and open pit preparations are starting this month. The heap leach pads are nearly complted and are being readied to start the placement of ore in January and February.

The gold plant facility was pre-fabricated in the US and is being assembled in the new process building. A 500 prson camp is undergoing final completion of civil works and is expected to be ready to house the contract miners this month.

Infrastructure work for power and water is under way to meet the schedule for the process plant start-up, which is planned to start once the weather in Inner Mongolia, warms in the spring of 2007.

Commercial gold production is expected during the second quarter of 2007.

Jinshan chief operating officer Cal McKee says, "With the receipt of our mining permit in September, we have been working hard to complete all of our liner installation and infrastructure work before cold weather sets in on site.

"Mild weather this fall has allowed us to finish the lining of ht eleach pad and to enclose the buildings so that we can work through the winter to complete the process plant installation.

"Our main focus now is to get the mine into commercial production, then we will turn our attention to additional drilling to optimize the gold resources in the Southwest Zone to add additional upside to the project."

The final feasibility study for CSH (217) indicates that the mine would be capable of producing some 117,000 ounces per year of gold for an initial mine life of about nine years at an average cash cost of approximately $253/ounce. The study was prepared by KD Engineering, pursuant to Canada's N. I. 43-101. A copy of the study is available on SEDAR at www.sedar.com. www.jinshanmines.com

News sourced from International Mining Project News - www.im-mining.com