The expansion study, being prepared principally by KD Engineering Inc., is designed to incorporate the mining of measured and indicated resources in the Southwest Zone, which now stand at approximately 32 million mt grading 0.86 g/t, for contained gold content of approximately 860,000 oz, and additional inferred resources of 9 million mt grading 0.74 g/t for additional contained gold content of 220,000 oz at a 0.5 g/t cut-off. The CSH 217 mine currently contains total measured and indicated resources of 2.9 million oz grading 0.83 g/t gold and additional inferred resources of 0.5 million oz grading 0.78 g/t gold at a 0.5 g/t cut-off.

“The mine’s resources have increased beyond the current scale of designed production. We are basically looking at an increase in gold resources by more than 800,000 ounces that are not yet incorporated into our mine plan. In addition, the current drill program indicates that this deposit could continue to expand along strike,” said Jinshan’s President, Jay Chmelauskas. “If we are successful with this expansion, the CSH 217 gold mine would become the third largest gold mine in China, and will mark a major step toward Jinshan’s vision to become an intermediate gold producer in China’s growing gold sector.”

The company said the CSH 217 mine has been engineered for production scalability. The new study will examine the increase in plant throughput capacity from 20,000 mt/d to 30,000 mt/d. In particular, the study will examine the increase of capacity for the process plant and crushing facilities, and other infrastructure upgrades such as power and water. The additional mine capacity will be subject to further regulatory approvals. Jinshan expects a final expansion decision to be made by the end of 2007.