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Column Leach Testing Shows Significantly Improved Gold Recoveries from Crushed Sulphide Ore at Jinshan's CSH Mine


December 8, 2009

 

VANCOUVER, BRITISH COLUMBIA - Jinshan Gold Mines (TSX:JIN) (the "Company") is pleased to report on gold recovery results from column leach testing of fresh material ("sulphide") from the CSH gold mine in Inner Mongolia China. Results show significant improvements in the expected gold recoveries from crushed sulphide material as compared to the run of mine oxide and mixed ores which have been mined and have yielded actual recoveries of approximately 45% to date. Average gold extraction predicted from the column leach tests is 78% from the Northeast Zone and 73% from the Southwest Zone from material crushed to 80% passing 9mm. The onsite crushing facility continues to ramp up towards its design capacity of 30,000 tonnes per day crushed to 80% passing 9mm and is currently crushing approximately 15,000 tonnes per day. Capacity of 30,000 tonnes per day is expected to be reached in the first quarter of 2010.

Jinshan conducted 38 column tests on 15 samples collected from drill core at various depths below the oxidized upper portions of the deposit which have been the focus of mining to date. The drill core is crushed to 80% passing 9mm, and additional testing was also performed on material crushed to 80% passing 6mm for comparison purposes. The primary objective of this test program was to generate gold recovery, sodium cyanide and calcium oxide consumption data at two different crush sizes (6 and 9mm). The column tests were conducted on site. The on site open cycle column leach study was issued by METCON Research which is the metallurgical testing subsidiary of KD Engineering.

Summary of results from North East Zone composite samples:

  1. Crush size of 80 percent passing 9mm achieved average gold and silver extractions of approximately 78 and 69 percent respectively.
  2. The lowest gold extraction of 66.92 percent was observed on the composite sample NE09-H at a crush size of 80 percent passing 9mm. The highest gold extraction of 90.19% was obtained from composite sample NE09-G at a crush size of 80% passing 6mm.
  3. Crush size of 80 percent passing 6mm achieved average gold and silver extractions of approximately 84 and 59 percent respectively.
  4. Sodium cyanide consumption ranged from 0.39g/t to 0.93g/t and calcium oxide consumption ranged from 1.05 to 1.90g/t at a crush size of approximately 80 percent minus 9mm.

Summary of results from South West Zone composite samples:

  1. Crush size of 80 percent passing 9mm achieved average gold and silver extractions of approximately 73 and 63 percent respectively.
  2.  Gold extraction ranged from 86.89 percent to 66.70 percent and silver extraction ranged from 83.31 percent to 47.93 percent at a crush size of approximately 80 percent minus 9mm.
  3. Crush size of 80 percent passing 6mm achieved average gold and silver extractions of approximately 76 and 37 percent respectively.
  4.  Sodium cyanide consumption ranged from 0.45 to 0.88g/t and calcium oxide consumption ranged from 1.33 to 1.84g/t at a crush size of approximately 80 percent minus 9mm.

Detailed results of this work will be contained within an updated NI43-101 technical report which is under preparation.

Jeoseph Keane, P. Eng.,former President and Principal Metallurgical Engineer of KD Engineering (KDE) of Tucson, Arizona is an Independent Qualified Person as defined by National Instrument 43-101 and is responsible for the column testing. Mr. Keane has supervised the scientific and technical information contained in this news release and verified the relevant data supporting such disclosure. Mr. Keane has visited the CSH mine site several times and directed the onsite KDE staff and mine site personnel for the column test work reported in this release. Mr. Keane has read and approved of the technical disclosure in this press release.

About Jinshan

Jinshan is a mining company whose principal asset is the CSH gold mine located in Inner Mongolia, China. Jinshan's shares are listed on the Toronto Stock Exchange under the symbol JIN. China National Gold Group Corporation, the largest gold producer in China, owns approximately 41% of Jinshan's shares.

Jinshan has also completed installation of a 30,000 tonne per day crushing facility and has been test running such facility since mid-August 2009. The throughput is gradually ramping up and Jinshan expects the crushing plant to reach the designed capacity in the first quarter of 2010, which is expected to substantially increase the gold production from current levels.

Please visit our website at: www.jinshanmines.com

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the date that the company commences crushing operations at full capacity, the actual recovery rates from crushed ore and the preparation of an undated technical report 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. Recoveries achieved in tests may not be indicative of actual recoveries. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement, except to the extent required under applicable securities laws.