First Drill Results Indicate Continuity of Bulk-Tonnage Gold Zone at Jinshan's Dadiangou Project, China
Wednesday April 11, 8:29 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 11, 2007) - Jinshan Gold Mines Inc. (TSX:JIN - News) is pleased to announce that results have been received from diamond drill holes 1 through 5 at it's Dadiangou project in Gansu Province, China. Highlights include intercepts of 37.7 metres (24.7m true width) grading 1.63 grams per tonne (g/t) gold in hole DDG07-003, and 24.0 metres (18.1m true width) grading 1.95 g/t gold in hole DDG07-005. Crews are currently drilling hole 16 of a planned 22 diamond drill holes with approximately 1,200 metres remaining in the budgeted 5,000 metre Phase I program. All drill holes completed to date have intersected the targeted shear zone with alteration and mineralization noted over the expected intervals.
The 15 drill holes completed to date have tested approximately 1,300 metres of the known 2,000 metre strike length of the Dadiangou main zone. Once all 22 of the planned Phase I drill holes are complete, the entire 2,000 metre strike will have been drilled with wide-spaced sections each consisting of one to two drill holes and spaced 80 to 160 metres apart.
"Our goal for Phase I drilling at Dadiangou is to determine the potential for a large, bulk-tonnage gold deposit. These first results show that we are on track to do exactly that," said Jinshan's Vice President of Exploration, Keith Patterson. "To date we have achieved a 100% success rate, with all 15 holes intersecting the targeted shear zone. The next step will be to expand our efforts outside of the known shear zone to identify the potential for additional gold bearing zones."
In addition to the drilling program, crews are currently on site preparing to collect high-quality channel samples from the accessible underground cross-cuts and from the trenches on surface. As both trenches and underground crosscuts have been completed on 40 metre spaced sections, this data will give Jinshan a detailed picture of grade distribution in the near-surface portions of the Dadiangou main zone. Outside of the main zone, a property wide soil sampling program is underway and will test for strike extensions and possible parallel shear zones at the project. Drilling has advanced at a rate of over 70 metres per day and the company expects the budgeted 5,000 metres to be completed by late April. Final drill results will be released as they are received, likely by mid-June.
Table 1: Gold Intercepts from diamond drill holes 1 to 5.
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True
Diamond Drill From To Interval Width(1) Gold
Hole (metres) (metres) (metres) (metres) (g/t(2))
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DDG07_001 117.80 149.10 31.30 20.53 1.10
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including 129.40 132.50 3.10 2.03 3.23
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including 142.00 143.30 1.30 0.85 6.55
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including 146.10 149.10 3.00 1.97 2.44
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DDG07_002 90.30 130.10 39.80 25.05 0.54
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including 97.50 122.00 24.50 15.42 0.74
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including 100.20 106.90 6.70 4.22 1.25
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DDG07_003 120.90 158.60 37.70 24.73 1.63
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including 121.40 135.90 14.50 9.51 2.26
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including 130.20 135.90 5.70 3.74 4.35
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including 150.40 157.90 7.50 4.92 3.12
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DDG07_004 84.20 93.70 9.50 8.23 1.78
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including 91.50 93.70 2.20 1.91 3.95
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DDG07_005 166.00 190.00 24.00 18.11 1.95
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including 167.70 180.90 13.20 9.96 3.17
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including 167.70 168.80 1.10 0.83 25.50
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Notes:
(1) True widths are determined from the apparent
orientation of the shear zone on each section and the
angle at which each drill hole intersects the shear
zone. All drill holes completed to date have been
oriented approximately perpendicular to the shear zone
in plan view.
(2) All grades reported are "length weighted averages"
(LWA) of one or more individual samples.
Quality Assurance and Quality Control Program
Industry standard core handling, sample chain of custody, and laboratory quality assurance/quality control (QAQC) procedures have been developed and followed during all work at the Dadiangou project. Individual core boxes are transported from the drill site to a secure core logging facility by Jinshan personnel. At the core shack, core is logged for geological and geotechnical purposes, then photographed prior to being cut by diamond saw for sampling. Blank, duplicate, and standard samples are inserted into the sample stream and comprise approximately 10% of the samples. A strict chain of custody protocol is enforced at all times during sample transport from the project to SGS Laboratories in Tianjin, China. Once results are received, they are compiled with the drill hole data then reviewed and approved by both Qualified Persons.
Chang Shan Hao 217 Gold Mine Scheduled for June/July Startup
Jinshan's Chang Shan Hao (CSH) 217 Gold Mine remains on schedule for commercial production to commence in June/July, 2007. Mining of the Northeast Zone began at the end of March and loading of the ore pads has commenced. Final plant construction and infrastructure work is progressing on schedule and on budget. When the CSH 217 Gold Mine commences targeted production in the next few months, it is estimated that it will be China's fourth largest gold mine with a projected initial average production rate of 117,000 ounces per year. A 5,000 metre drilling campaign is currently underway targeting strike extensions and to infill the current measured and indicated resources, which now stand at 2.0 million ounces grading 0.81 g/t gold in the Northeast Zone and 870,000 ounces grading 0.86 g/t in the Southwest Zone using a 0.5 g/t cut-off. In addition, the project contains inferred resources of 460,000 ounces grading 0.78 at a 0.5 g/t cut-off (see Jinshan's April 24, 2006 news release for complete details). A new resource estimate that will incorporate the 2007 drilling results is expected towards the end of 2007.
Qualified Persons
Howard Davies, M.Sc., M.A.I.G., a Jinshan employee on site at Dadiangou, and Keith Patterson, M.Sc., P.Geo., Vice President of Exploration, are the designated Qualified Persons for the Dadiangou project as defined by National Instrument 43-101. Both Mr. Davies and Mr. Patterson have supervised the work onsite and have reviewed the results reported in this release.
Calvin McKee, Jinshan's Chief Operating Officer and CSH 217 General Manager, a Qualified Person as defined by National Instrument 43-101, has supervised the preparation of the technical and scientific information relating to the drilling campaign at Chang Shan Hao (217) Gold Project.
About Jinshan
Jinshan is a Canadian mining company focused on the development of the CSH gold mine in China. In addition, the company is actively exploring its portfolio of gold exploration properties and continues to evaluate additional gold opportunities in China.
Forward-Looking Statements: Statements in this release that are forward-looking statements, including the potential for a large, bulk-tonnage, gold deposit at Dadiangou, the drill program at Dadiangou, the soil sampling program, the expected date for commencement of commercial production at the CSH gold mine, the mine's estimated annual gold production, the additional drill program on the CSH gold mine property, and the estimated timing for the release of a new resource estimate for the CSH property are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's MD&A, financial statements and other periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. When used in this document, words such as "could", "planning", "estimate", "expect", "intend", "may", "potential", "should", and other similar expressions are forward-looking statements. The company does not assume the obligation to update any forward-looking statement.
Contact:
Deanna Kress
Jinshan Gold Mines Inc.
Investors
(604) 609-0598
Bob Williamson
Jinshan Gold Mines Inc.
Media
(604) 609-0598
Email: info@jinshanmines.com
Website: www.jinshanmines.com
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Source: Jinshan Gold Mines Inc.
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