Sino Gold has acquired three strategic exploration licences in Shandong Province in China.

The licences cover 26sqkm and about 6km of the highly prospective Jiaojia Fault, which hosts a number of significant deposits each containing more than one million ounces of gold.

The licences are being added to the Ludi Joint Venture by Sino Gold's partner, the Shandong Provincial Bureau of Geo-Mineral Exploration and Development (BGMED). Sino Gold is manager of the joint venture and will earn a 70% interest in the licences. BGMED is one of the largest tenement holders in Shandong Province.

Shandong Province provides about a quarter of China's annual gold production. Regional, deep-seated, north-east trending faults, such as the Jiaojia Fault, host the majority of Shandong's major gold deposits.

Sino Gold chief executive officer Jake Klein says: "Sino Gold has targeted the Jiaojia Fault and surrounding gold district in Shandong Province. The Hexi Gold Joint Venture, formed in 2006, provided exposure to the northern portion of the Jiaojia Fault we are drilling. The additional licences are 20km to the south and cover the Jiaojia Fault along strike from a number of major gold mines."