Diamond drilling at Jinshan Gold Mines" Dadiangou Gold Project in Gansu Province, China, shows the mineralized zone extends for at least two kilometres and remains open in both directions.

Additional surface work designed to extend the strike length of the main zone is ongoing and a Phase II drill program is planned to follow up the positive results.

Jinshan exploration vice president Keith Patterson says the Phase I drilling supports the company's initial geological model for Dadiangou and confirms significant gold mineralization over a large area. "Our focus now will shift to expanding the main zone and to identifying additional mineralized zones."

The Phase I drilling, totalling 5202 metres in 22 holes, has delineated a large, low-grade gold system. Jinshan's Chinese partner reports that gold recoveries of up to 92% were obtained in test leaching.

Jinshan plans a preliminary metallurgical test program designed to confirm the results through a series of tests on fresh samples of mineralization obtained during drilling. If successful, Jinshan plans to conduct additional work to determine if Dadiangou can support an open-pit, heap-leach gold mining operation.

A soil sampling, geological mapping and prospecting program, to delineate drill targets along strike and additional parallel shear zones to the north of the main zone, is nearing completion. Once complete, the soil sample data will cover an area of about 11sqkm.

Drill hole 10 intersected the Dadiangou main zone approximately 160 metres beyond the previously known mineralization and is the most north-easterly of the Phase I holes. The intercept of 32.4 metres at 1.6 grams/tonne gold indicates that the mineralization may be strengthening to the north-east where the zone remains open along strike. Future drill programs will target this area to define sub-surface mineralization.

Jinshan is a Canadian mining company focused on the start of commercial production at the CSH gold mine in China. In addition, the company is actively exploring its portfolio of gold exploration properties and continues to evaluate additional gold opportunities in China.