Jinshan Gold Mines Options A New Gold Project In Gansu Province, China
August 3, 2004
BEIJING, CHINA --- Jinshan Gold Mines announced today that it has signed an option agreement with the Yinchuan Gaoxin District Shijin Mining Ltd. (YGDSM) that gives Jinshan the right to purchase up to 95% of the Xijishui gold project in Central Gansu Province, north central China through payments to YGDSM of US$640,000 made over a three year period. The Xijishui gold project consists of exploration permits covering 19.22 square kilometres.
The project is approximately 200 kilometres northeast of the city of Lanzhou located in Gansu Province. It has access to power and water and is accessible by an express highway from Baiyin, a major smelting & refining centre.
Local Chinese miners are currently conducting small--scale mining on the Xijishui gold project. Small tonnages of oxidized, near-surface gold mineralization with reported grades of approximately 1-3 g/t gold, and locally higher grades of up to 10-20 g/t gold, are being mined to depths of less than 30 metres from a series of adits over an area of approximately 3 kilometers. Due diligence is underway to confirm the reported grades. To date, there has been insufficient exploration to delineate whether a resource can be defined on the property. However,the gold mineralization occurs on the margin of a major regional fault zone that contains extensive zones of gold-bearing quartz-carbonate veining in a stockworks zone (a quartz-carbonate vein system) at least 200 metres wide and up to five kilometres long. The fault zone has been traced for over 20 kilometres along strike.
"The Xijishui project has excellent potential to host a significant, bulk tonnage gold resource. Very little modern exploration has been done in the area and the current mining operations appear to have just scratched the surface. Regionally, the area along the fault zone provides good potential to delineate additional areas of mineralization," said Mike Page, Jinshan's Vice-President of Exploration.
Jinshan plans to begin exploration in mid August followed by a drilling program in the fall.
The Xijishui project is subject to Ivanhoe Mines' earn-in agreement as detailed in Jinshan's October 24, 2003, news release.
Mike Page, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.
About Jinshan
Jinshan Gold Mines is a Canadian company focused on the exploration and development of precious and base metals (gold, copper and platinum group metals) in the People's Republic of China and Mongolia. Jinshan's most advanced project is the 217 Gold Project in Inner Mongolia. The company also is conducting exploration work on prospective properties in Yunnan, Shandong, Liaoning, Guizhou and Inner Mongolia, in China.
Jinshan shares are listed on the TSX Venture Exchange under the symbol JIN.
Investors: Bill Trenaman/ Media: Bob Williamson: +1.604.609.0598
Email: [email protected] Website: www.jinshanmines.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.
Forward-Looking Statements: Statements in this release that are forward-looking Statements, including the planned earn-in and exploration of the Xijishui project in China, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's 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. The company does not assume the obligation to update any forward-looking statement.
