An engineering study has begun to expand the projected gold production at Jinshan Gold Mines" 96.5% owned CSH 217 gold mine to approximately 180,000 ounces/year.
Jinshan is on schedule to start commercial gold production in July 2007, starting at an initial production rate of 117,000 ounces/year. The expansion study, being prepared principally by KD Engineering, is designed to incorporate the mining of measured and indicated resources in the Southwest Zone, which now stand at approximately 32 million tonnes grading 0.86 grams/tonne, for contained gold content of approximately 860,000 ounces, and additional inferred resources of 9 million tonnes grading 0.74 grams/tonne gold at a 0.5 grams/tonne cut-off. The CSH 217 mine currently contains total measured and indicated resources of 2.9 million ounces grading 0.83 grams/tonne told and additional inferred resources of 0.5 million ounces grading 0.78 grams/tonne gold at a 0.5 grams/tonne cut-off.