Jinshan to Explore for Gold in PingYi County, Shandong Province, China
May 18, 2004
Beijing, China --- Jay Chmelauskas, President of Jinshan Gold Mines, announced today that the company has signed an option agreement with the Bureau of Geology and Mineral Resources (BGMR) of Shandong Province, People's Republic of China, that gives Jinshan an exclusive right to form a joint venture on BGMR's exploration permit areas in Shandong's PingYi County.
Under the terms of the option agreement, Jinshan has the right to carry out a six-month exploration program on the areas covered by BGMR's exploration permits. The exploration program will focus on identifying prospective targets that warrant more extensive exploration. If Jinshan is successful in identifying areas in which it believes further exploration is warranted, Jinshan will have the right to form a joint venture with BGMR in which Jinshan would earn a 70% interest by contributing 70% of the registered capital to the joint-venture company.
The permit areas, comprising approximately 96 square kilometres, cover the TongShi alkali porphyry intrusive complex that hosts gold mineralization associated with breccia pipes. The permit areas lie adjacent to a mining lease on which the County government, in partnership with local companies, is mining gold ores at a reported average grade of 4.9 grams per tonne from an open pit. The mining area is in the GuiLaiZhuang gold district, south of the Jiaodong gold fields.
"Shandong Province is one of the most prolific gold areas in China, producing some 25% of China's annual gold output. Through this agreement, Jinshan has forged a new partnership with a strong Chinese partner that will allow us to advance the project and to identify other prospects within the province," said Mr. Chmelauskas.
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. The company has two advanced projects --- the JBS Platinum & Palladium Project in Yunnan Province and the 217 Gold Project in Inner Mongolia in addition to numerous exploration projects throughout China and Mongolia.
Jinshan shares are listed on the TSX Venture Exchange under the symbol JIN.
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