Golden China Resources has returned its best drilling intercept to date from the Behinyar gold project in the Chinese province of Inner Mongolia.

Drill hole BYD194 returned 68 metres averaging 5.32 grams/tonne, including a significant intersection of 26 metres at 12.01 grams/tonne.

The latest results continue to demonstrate the continuity of the mineralization and the project's multi-million ounce potential.

An NP43-101 compliant preliminary assessment of Beyinhar suggests the project's ability to initially produce 100,000 ounces per year for a low cash cost per production ounce of between US$260 and US$280, with capital expenditures of US$29 million.

Golden China president and CEO Greg Starr says: "We are extremely excited by the latest intercepts, which continues to clearly demonstrate the project's strong upside. The new drilling confirms the extension of the existing Beyinhar ore body to the south-west, which will enable Golden China to significantly increase our measured and indicated ounces over the next few years. As well, these results continue to identify high-grade sulphide mineralization beneath the oxide zone, which in turn strengthens the potential for a second, long-term underground mining operation."

Following the planned completion of the updated NI 43-101 mineral resource estimate in October, the company plans to complete an NI 43-101 compliant feasibility study for the development of the mine.