Central China Goldfields has been undertaking drilling for the past couple of months at its Songpanguo and Shuiniujia deposits in China "s Sichuan Province .

Central China Goldfields Chinese joint venture company, the Sichuan Snow Mountain Mining Exploration United Centre, signed the drilling contract earlier this year with Victor Geological Exploration.

Victor is a wholly owned Beijing-based subsidiary of Nahanni Drilling Corp of Canada . The contract is to drill approximately 1200 metres in the Songpanguo deposit in the Baima area, in the Snow Mountain Project, Sichuan Province of China.

The drilling program began in April at Songpanguo and in late April at Shuiniujia.

In addition, a series of underground tunnels totalling more than 2200 metres and trenching totalling 2250 metres will be undertaken in both deposits. The drilling and aditing/trenching program is intended to test the depth and lateral continuation of these two deposits.

Dr Jeffrey Malaihollo of Central China Goldfields says: "Our partner the Sichuan Bureau of Metallurgy and Geological Exploration has calculated inferred resources of the Songpanguo and Shuiniujia deposits of approximately 200,000 ounces and 140,000 ounces respectively. These resources are not compliant to international standards.

The program will be supervised by exploration manager, Ciceron Angeles, who is qualified under the Australasian code for the reporting of mineral exploration results, mineral resources or ore reserves ("The JORC Code") of the Australasian Institute of Mining and Metallurgy, and project manager Roberto Tan BSc.

Dr Jeffrey Malaihollo says: "Our exploration programme in 2005 confirmed previous work conducted by the SBMGE. This year we intend to add to the resources by drilling and tunnelling. We look forward a very exciting year of development."