The ore reserve at Sino Gold’s White Mountain gold project in Jilin Province, China, has increased by 81% to 6.5 million tonnes @ 3.8 grams/tonne gold.

The measured and indicated resource estimate has increased 92% to 10.7 million tonnes @ 3.1 grams/tonne gold, containing 1.1 million ounces.

Sino Gold chief executive officer Jake Klein says: “Development of White Mountain Gold Mine remains on-schedule and on-budget to begin commissioning of the processing plant in late 2008.

“This increase of the resource to over one million ounces and doubling of reserves provides White Mountain with a mine life of at least 10 years.

“Drilling in 2008 is planned to test the regional potential as well as continue to further extend mineralization to the north-east and at depth.

“White Mountain has been advanced very quickly towards becoming Sino Gold’s second mine and is shaping up as a robust, simple underground mining operation. Relatively low capital and operating costs in China should enhance the economic returns for this mine.”

The interpretation of data from the 147 diamond drill holes, totalling 32,451 metres, completed during 2007 culminated in the White Mountain identified Mineral Resource being significantly upgraded and increased over the January 2007 estimate.

This new measured and indicated resource estimate is approximately double the previous estimate in terms of both tonnes and contained ounces.

Drilling has extended the mineralization contained in the resource about 140 metres to the north-east. The majority of the resource increase has come from the north-east area of the resource.

The grade has reduced by 13% from previous estimate, primarily due to the drilling and inclusion of lower grade, previously inferred resource into measured and indicated resources, and additional lower grades zones within the deposit.

A cut-off grade of 1.0 grams/tonne gold was used for the resource estimates.

Ore is planned to be accessed via a decline with the sub-level open stoping mining method being used for portions of the ore body thicker than 10m, with the cut-and-fill method being utilized for the remainder of the deposit.

www.sinogold.com.au