An improvement in the grade of gold obtained from Golden China Resources" BioGold plants in Shandong, China, during the last quarter resulted in an increase in the amount of gold won.

The increase from 15,809 ounces in the previous quarter to 17,659 ounces came despite production being substantially affected by power failures resulting in a decrease in throughput.

The power failures particularly affected production at the BACOX plant and to avoid the negative impact of failures in the future, a new emergency back-up power system is being fast-tracked.

The company's base metal flotation plant, gold room and refinery operated without incident during the quarter, which also saw an agreement reached with China Construction Bank in respect of an increased bank facility for the purchase and importation of international concentrate. Efforts are being directed toward securing further international concentrate sources.

Golden China has been continuing to progress plans for the BACOX plant expansion project and construction is expected to begin shortly. The bacterial oxidation (BACOX) technology employed by the BioGold production facility is owned by BacTech Mining Corporation.