Gold production has started at China Goldmines' Guanzhuang Gold Project, which is part of the Shenjiaya Prospect in the Hunan Province.

The first pour of 4kg of gold from concentrate took place in late January and the company plans to shortly make a further production run of 19kg from the concentrate. Full production from the Baomuyuan Plant at Shenjiaya is anticipated to start from early April.

China Goldmines’ CEO Frank Vanspeybroeck says: “We are very proud of the achievement made by our management team and staff to transform the company from explorer to producer in the nation which is now the largest gold producer in the world.”

Director Alex Worrall told the recent annual general meeting in London that the company had made substantial progress during 2007 with the exploration, evaluation and purchase of eight gold mines from the successful capital raising done in October 2006.”

He says during 2008 the company will focus on consolidation and refurbishment with the aim of achieving production of 25,000 ounces.

“We will also implement a rigorous training programme aimed at improving health and safety procedures of the approximately 500 employees recruited following the transfer of the mining licences. The group has stated its intention to establish more modern mining practices in its eight goldmines.

“We will undertake a vigorous exploration campaign to better define low grade surface soil anomalies and higher grade depth extensions by further infill drilling and exploratory development.”

www.chinagoldmines.com