China Goldmines has poured its first gold in China after receiving licence certificates for its eight mines at the Shenjiaya Prospect in Hunan Province

The company poured 4kg of gold in January at the Guanzhuang Project and will follow that up with a 19kg pour this month. Full production from the Baomuyuan Plant in the Shenjiaya Prospect is expected to start in early April.

China Goldmines’ CEO Frank Vanspeybroeck says: “We are making good progress at Shenjiaya, which is an endorsement of our development strategy to increase performance and output.”

Based on an independent geological report the Guanzhuang project has an estimated Inferred resource of 1.8 million ounces within the top 325m from surface and over a strike distance of 1.5km. The company's target is to further increase this resource by a factor of four to six times with a continuing exploration program.

The Shenjiaya prospect consists of eight gold mines which the company plans to consolidate with the aim of having a long life mining production of 150,000 ounces of gold per annum in the near future.

At the same time as mining the existing eight mines, China Goldmines will continue to investigate the potential of the project area that remains under explored.

www.chinagoldmines.com