VANCOUVER, CANADA -- Jinshan Gold Mines announced today that it has sold its interest in the JBS Joint Venture Company, which holds an option on the Jinbaoshan (JBS) Palladium and Platinum property and other regional exploration properties in Yunnan Province, China, for US$1.4 million. Jinshan, together with its joint-venture partner, Ivanhoe Mines Ltd., had earned an approximate 20% interest in the JBS Joint Venture Company.
The interest held by the JBS Joint Venture Company will be sold back to the Chinese partner, subject to approval by Chinese authorities. The US$1.4 million proceeds from the sale will be split evenly between Jinshan and Ivanhoe. The first payment of US$500,000 has been received, and the balance is scheduled to be paid in two additional installments over the next 12 months.
Jinshan has carried out drilling, geological modeling and regional exploration within the permitted areas of the JBS property over the past two years. An independent resource estimate was prepared in April, 2004, on the property (see Jinshan's news release May 13, 2004); however, after initial scoping studies it was determined that the estimated grade and tonnage did not meet Jinshan's financial criteria. Jinshan will apply its share of the proceeds from the sale towards its other projects in China.
About Jinshan
Jinshan Gold Mines is a Canadian company focused on the exploration and development of precious and base metals (gold and copper) in China. Jinshan's most advanced project is the 217 Gold Project in the Inner Mongolia Autonomous Region in northern China. The company also is conducting exploration work on prospective properties in Xinjiang, Yunnan, Shandong, Guizhou provinces, and Inner Mongolia.
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 of this release.
Forward-Looking Statements: Statements in this release that are forward-looking statements, including the planned receipt of additional installment payments for the JBS sale, 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.
