Jinshan Gold Mines has produced 4130 ounces of gold dore at the CSH 217 gold mine in Inner Mongolia, China, during the initial start up phase.

A mine opening ceremony at CSH 217 was held last month with more than 200 distinguished guests in attendance, including senior government officials and representatives of the county towns of Xinhure and Wulate. Also attending were employees of the mine, mining and construction contractors, and villagers and farmers from nearby communities.

During the ceremony, Jinshan announced its commitment to continue to help fund education opportunities to qualified students in the local area. The company has now made a total commitment this year of RMB 300,000 (US$39,000) towards this effort.

The mine has performed well during this initial phase and in the next few months the company expects to increase gold production to its designed rate of about 10,000 ounces per month. In addition, the company is advancing an engineering study to examine the potential for an increase in the mine's production from the projected average of about 120,000 ounces of gold per year to about 180,000 ounces per year.

Two rigs are at the mine drilling to test potential extensions of the CSH 217 deposit and also to upgrade some of the current inferred resources to measured and indicated categories. A new resource estimate is anticipated in two stages, with results from the south-west zone planned for later this year and results from remaining mineralized zones in early 2008.