CAMBODIA – Gossan gold discovery

Exploration activities at Southern Gold’s joint venture Kratie South project have identified a new high-grade gold discovery at the Gossan prospect on the Preak Khlong tenement.

The 2009-10 field season in Cambodia has concluded with the onset of the wet season and the final assays received from diamond core drilling resulted in the discovery.

Exploration at Preak Khlong and O’Khtung tenements at Kratie South, as well as at the Phnum Khtong tenement at Kratie North, is being fully funded by the Japanese government-backed JOGMEC as part of a joint venture agreement whereby it can earn a 51% interest.

The best results from diamond core drilling at Gossan are: 3 metres @ 14.60 grams/tonne gold, 0.4% lead, 0.5% zinc and 0.1% copper from 38 metres, including 1 metres @ 34.57 grams/tonne gold’ and 2 metres @ 1.44 grams/tonne gold from 88 metres.

Best rock chip results are: 35.55 grams/tonne gold, 2.8% zinc, 2.9% lead and 119.5 grams/tonne silver; and 26.16 grams/tonne gold, 23.6% lead and 974.7 grams/tonne silver.

The new discovery at Gossan will be the focus of detailed rock chip sampling, trenching and infill diamond core/RC drilling programs planned to started in October-November, after the current wet season.

A total of 2187 metres of diamond core drilling, 767 metres of reverse circulation drilling and 2000 metres of trenching has been completed over the Preak Khlond and O’Khtung tenements during the 2009-10 field season.

CHINA - Aohanqi expansion

Expansion work by Sino Prosper State Gold Resources Holdings Limited at the AoHanQi gold mine in Inner Mongolia is nearing completion, increasing daily output by 300%.

The reconstruction and expansion is being undertaken to provide adequate raw materials to a new processing facility which is being constructed at AoHanQi.

The expansion work involves widening of existing tunnels and construction of additional drifts.

This work is well on track and substantially complete, bringing daily mine output capacity from the original 200 tonnes to about 600 tonnes.

To ensure adequate mining capacity, three new major shafts are being constructed which will bring the total daily output capacity of the AoHanQi project to more than 1500 tonnes of ore.

In the process of expanding the mine, Sino Prosper has encountered and identified new hidden ore bodies, expanding management's estimate of the potential future resource.

The company proposed to increase daily throughput at the processing plant from the current 50 tonnes to 1000 tonnes, however, based on the work to date, management's expectations for the ultimate size of the AoHanQi resource have increased and the new processing plant will have the potential to expand future daily processing capacity to 2000 tonnes.

As such, a new site has been identified and construction of the first phase for initial daily production of 500 tonnes is expected to be completed by mid to late September, with further construction in subsequent months.

Sino Prosper is planning an extensive new JORC compliant exploration program at AoHanQi this year. All historic data is being converted into international standards required for the preparation of JORC complaint mineral resource statements and currently 6 drill rigs are in operation.

At the Zhongyi Weiye Gold Project in Heilongjiang Province, Sino Prosper has increased its equity interest to 92%. The company has five exploration licences for polymetallic gold prospects at Zhongyi Weiye which cover an area of 364.61sqkm.

CHINA - Erbahuo licence received

Silver Dragon Resources has received a new mining licence for the Erbahuo silver mine in Inner Mongolia.

The licence was issued by the Department of Land and Resources, Inner Mongolia, and has been transferred from the previous holder, Huaguan Industrial Corp (HIC), to Chifeng Silver Dragon Resources & Technologies, a Sino-American joint venture.

The mining licence transfer process constituted part of the permitting process for mine development and mill construction.

The Erbahuo mine is 70% owned by Silver Dragon and 30% by Chinese shareholders led by HIC, Silver Dragon's state-owned Chinese joint venture partner.

According to the mining licence, mineable ore types include silver, gold and lead. A new business licence has also been issued to Chifeng Silver by the local industrial and commercial administration, expanding Chifeng Silver's business scope to include silver mining and sales of mineral products.
The Erbahuo silver mine covers an area of 1.2sqkm and is 120km northwest of the city of Chifeng, which is 450km northeast of Beijing.

An NI 43-101 technical report on the property was completed in July 2007 and updated in 2010 by Micromine Consulting. A feasibility study for the Erbahuo polymetallic project was completed in early 2009 by Beijing Tenstar Technology, of Beijing.

CHINA - New Dadi licence issued

China's Inner Mongolia Department of Land and Resources has issued a new exploration licence for Silver Dragon Resources' Dadi Property.

The licence is under the name of Inner Mongolia Guangda Mining, which is a wholly-owned subsidiary of Sanhe Sino-Top Resources & Technologies in which Silver Dragon has a 40% equity interest.

Guangda was formed for the specific purpose of developing Silver Dragon's exploration properties in China, beginning with Dadi and Laopandao, into producing mines.

Silver Dragon and its Chinese Joint Venture partners are implementing a major surface and underground exploration program at Dadi, consisting of 10,000 metres of diamond drilling, 2000 metres of underground exploration-development and 2000 metres of trenching.

This program will be completed later this year and the annual geological report and an accompanying metallurgical testing report will subsequently be provided to form the basis for a mining license application.

Sino-Top's management anticipates that Dadi will be developed into a silver, lead and zinc producing mine in 2011.

To date about 4200 metres of drilling (13 holes) and 700 metres of tunnelling have been completed since the start of the current year.

Dadi is one of the six exploration properties of Sanhe Sino-Top Resources and Technologies in the prolific Erbahuo Silver District in Inner Mongolia.

The Dadi exploration area, covering 12.48sqkm, is in the Mesozoic volcanic basin in Keshiketeng County, Inner Mongolia. Geologically, the Dadi property is in the south edge of the Daxinganling metallogenic belt and at the joint between the Daxinganling mountain chain and the Xilamulunhe structure belt. These two structural belts are also two major ore-forming belts of China.

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