Golden China Resources has secured a strategic, second exploration licence at its Beyinhar gold project, significantly increasing the potential of the company"s resource base.

The company"s new 95%-owned cooperative joint venture company for the Beyinhar project has also been granted its required business licence under Chinese law.

Golden China's president and CEO Greg Starr says: "Beyinhar is shaping up to be a significant asset for Golden China. We are very encouraged by the project's progress, including our continued success in negotiating the complex Chinese mining industry approvals process as evidenced by our new southwest exploration permit and joint venture business licence registration.

"We are also excited by the positive results of a NI 43-101 scoping study indicating a cash cost per production ounce that is well below industry average.

"Beyinhar's future prospects are also excellent. As a result of the second exploration licence, we aim to more than double the project's measured and indicated resources by October of this year. This will be followed by a feasibility study which could potentially see the project in development by April 2008."

Golden China's second exploration licence at Beyinhar is next to its existing permit within which the company also holds a mining lease.

Golden China has also announced positive results associated with a scoping study on the oxide resource at Beyinhar, which suggests a production cost per ounce of between US$260 and US$280.

The Beyinhar gold project lies within the Inner Mongolia Fold Belt Region of China. The project is well supplied by existing infrastructure and services. It is 365km from Hohhot, the provincial capital, and has a bitumen road passing within 1km. A new 110KVa power line has been constructed within 7km of the site and a potential water source lays 30km to the northwest.