Jinshan Gold Mines will this quarter begin commercial production from its CSH Gold Mine in China.

To December 18 gold production reached about 27,000 doré ounces, or 19,000 ounces of gold. Silver makes up approximately 30% of each doré bar.

Since then production rates heave steadily improved to commercial production level.

The ramp up to commercial production has been occurring during the winter months and the mine has been performing according to design. In addition, the mine has received its operating environmental and safety certificates after passing various regulatory inspections.

Infill and expansion drilling at the mine during 2007 totalled 11,432 metres and new reserve and resource estimates are being prepared.

The estimates will be included in the mine expansion study, which is expected to be completed this month. The study will consider optimizing the current mine plan and increasing annual production to an estimated 150,000 to 180,000 ounces of gold.

All production at Jinshan’s CSH gold mine is un-hedged and sold at the prevailing Shanghai Gold Exchange price, which closely tracks the London Gold Fixing price.