Jinshan Announces Reserves Increased by 51% and Measured and Indicated Resources Increased to 4.99 Million Ounces at Its CSH 217 Gold Mine, China
VANCOUVER, BRITISH COLUMBIA, Mar 4, 2010 (Marketwire via COMTEX) -- Jinshan Gold Mines Inc. (TSX:JIN) is pleased to announce results of a new National Instrument 43-101 compliant reserve and resource estimate at its CSH 217 gold mine in Inner Mongolia, China. Compared to the reserves reported in March 2008, the total proven and probable mineable gold reserves at the CSH 217 mine as of the end of December 2009 have increased to 3.43 million ounces (including 433,000 mined out ounces) from 2.26 million ounces in the March 2008 ITR. This represents a 51% increase over the previous March 2008 ITR. In addition, project Pre-Income Tax Net Present Value (NPV) increased from US$87 million in the March 2008 ITR to US$517 million.
"The 2008 drilling campaign that we enacted after the March 2008 ITR and the 2009 onsite column leach test program has greatly increased our confidence in the CSH 217 project. The total reserves increased over 51% compared with the March 2008 ITR," said Xin Song, Jinshan's new CEO. "The growth of the number of ounces of gold controlled by the Company at CSH will allow the Company to grow organically. With the strong support from our major shareholder China National Gold Group, the Company is well positioned to expand on a healthy growth profile."
Mineral Reserves
An updated mine plan for the CSH Gold Project has been developed by Nilsson Mine Services (NMS) of Vancouver, British Columbia, Canada. This plan has been prepared for heap leaching with a crushing plant throughput rate of 30,000 tonnes per day, with full capacity expected by the end of the first quarter of 2010.
Mineral reserves have been reported for the final pit designs at a positive net value cutoff that corresponds to a gold grade cutoff of approximately 0.3 grams per tonne gold as scheduled in the mine plan. The proven and probable reserves at CSH mine as of December 31, 2009 stand at approximately 138 million tonnes of ore with an average grade of 0.67 g/t gold, representing approximately 3.0 million ounces of contained gold. In the previous March 2008 ITR, the company reported 99 million tonnes of reserves at an average grade of 0.71 g/t gold, consisting of 35 million tonnes of proven reserves averaging 0.74g/t gold and 64 million tonnes of probable reserves averaging 0.69 g/t gold at 0.28 g/t gold cut-off grade. The new reserves are summarized in the table below:
CSH 217 Reserves by category, Northeast and Southwest pits combined December 2009
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