Jinshan Gold Mines has started Phase II drilling at the Dadiangou gold property in Gansu Province, China, aimed at testing strike extensions where earlier drilling defined gold mineralization over a 2km strike length.

Results from a soil sampling program and from surface mapping and trenching are promising. Of note in the soil sample results are highly anomalous values which extend over 1km along strike beyond previous drilling at the Dadiangou main zone.

Soil sampling has also defined a new zone, named the north anomaly, which lies about 800 metres north of the Dadiangou main zone. The north anomaly is defined by multiple soil samples containing greater than 50 ppb gold over a strike length of approximately 1.2km. The size and strength of the Dadiangou north gold in soil anomaly compares favourably with the anomaly over the Dadiangou main zone.

In addition to Dadiangou, surface exploration programs have started at two projects in Xinjiang Province while an 8000-metre exploration and resource delineation drilling program and property-scale surface exploration program is underway at the CSH 217 Gold Mine, in Inner Mongolia, China.

Jinshan's vice president of exploration Keith Patterson says: "This is an exciting time for Jinshan. With the realization of gold production from our CSH 217 Gold Mine, we can now focus the company's efforts on expanding our gold resources at Dadiangou and the CSH 217 Gold Mine. We have two significant drill programs underway, property-scale surface work ongoing at three projects and crews evaluating several potential new projects for the company."