Sino Gold Limited has formed a new joint venture covering seven exploration licences in the Golden Triangle region.

The package of tenements is situated on the boundary of the Guizhou and Yunnan Provinces , about 150km west-northwest of the Jinfeng Mine. Previous work by the partner, Brigade 105, has focussed on shallow gold mineralisation and there are a number of prospective exploration targets identified for follow-up drilling on the tenements.

Sino Gold CEO Jake Klein says the Golden Triangle is one of China 's most prospective and under-explored gold belts, with several deposits containing more than one million ounces, including our 4 million ounce Jinfeng deposit.

"Our partner has a history of successful exploration in the area and combining our exploration experience from exploring Jinfeng and their local experience is very powerful," Jake Klein says.

"This deal again reflects well our focussed business development strategy - a partnership with one of the major tenement holders in the area covering a package of advanced stage exploration prospects in one of our preferred gold districts".

Sino Gold has entered into the new joint venture with Brigade 105, a subsidiary of the Guizhou Bureau of Geology and Mineral Resources (BGMR). Sino Gold will hold an initial 60% and ultimately 92.5% in the joint venture upon reaching agreed staged expenditure milestones and making certain agreed payments to the partner.

The acquired licences cover an initial area of 115sqkm and are along strike from the Nibao gold deposit.

Previous exploration by Brigade 105 has identified significant areas of gold, arsenic, antimony and mercury geochemical anomalism and mineralisation associated with the Lianhuashan Dome. Approximately 10 small, near surface gold deposits have been mined by Brigade 105 within these licences. Access and infrastructure in the area is relatively good.

Sino Gold has been active in China since 1996. Its Jianchaling Mine produced approximately 450,000 ounces of gold from 1998 to 2006.

The company is now developing the Jinfeng Mine in Guizhou Province that is expected to start commercial gold production in the March 2007 quarter. With resources of 4.0 million ounces and reserves of 2.9 million ounces, Jinfeng will be a major, long-life operation.

Sino Gold has demonstrated capability to gain approvals for, and to successfully develop, gold projects in China .

Sino Gold is a growth gold company that is actively pursuing a discovery and acquisition strategy. With a "first mover" advantage, it holds a strong competitive position in China .