Phase II diamond drilling program at Jinshan Gold Mines’ Dadiangou Gold Project in Gansu Province, central China, has extended the mineralized length of the Dadiangou Main Zone (DMZ) to more than 3km.

Infill drilling and underground sampling in the central portions of the DMZ returned gold grades and widths consistent with the Phase I results and have provided the data density needed to proceed with a resource estimate, which should be released shortly.

Hole 31, drilled along the eastern extension to the Dadiangou South Zone (DSZ) has returned the best drill intercept to date with 9 metres @ 6.76 grams/tonne gold.

Jinshan’s vice president of exploration Keith Patterson says: “Phase II drilling was successful in meeting our expectations and targets. We hit our highest grades yet and intersected strong alteration and gold grades in the most westerly hole drilled to date. This leaves the shear zone open to the west and provides an obvious target for future exploration.”

During Phase II drilling, 29 diamond drill holes were completed for a total of 6663 metres. Other intercepts from Phase II were 10.5 metres @ 2.3 grams/tonne, 25m @ 1.54 grams/tonne, 15m @ 0.87 grams/tonne and 17.8m @ 0.84 grams/tonne.

In addition to the drilling Jinshan completed an underground sampling program of all accessible cross-cuts within the central portions of DMZ. In general results from this sampling are consistently, and in some cases significantly, higher than the results from nearby drill intercepts. Jinshan geologists say that this discrepancy can be attributed to the larger volume of material sampled by the underground channel samples and speculate that these larger samples may be more representative of the bulk grades.

Highlights include 10.15 metres @ 6.34 grams/tonne gold, 11.67m @ 3.31 grams/tonne and 15.3m @ 1.94 grams/tonne.

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