An updated mine plan for CSH 217 has been developed by Nilsson Mine Services of Vancouver, British Columbia, that extends the mine’s life from 2018 to 2023, to be followed by an additional four years of leaching. The mine plan is based on production from a new crushing plant that was expected to reach full capacity of 30,000 mt/d by the end of March 2010. Prior to installation of the crushing plant, CSH 217 production was based on leaching of uncrushed, run-of-mine ore. Jinshan anticipates that gold recoveries will greatly improve as a result of leaching crushed ore.

According to the new mine plan, CSH 217 will produce approximately 2.35 million oz of gold over the next 15 years, starting with annual production of approximately 132,000 oz in 2010 and gradually increasing to more than 150,000 oz in 2014 and to more than 200,000 oz in 2021.

Prior to installation of the crushing facility, the CSH 217 mine experienced low and slow gold recoveries for various reasons, among which, ore that has been categorized as weathered in the lower portions of the deposit is actually mixed oxide and sulphide ore, with low leaching recovery when not crushed. In addition, run-of-mine ore size has been difficult to control. By the end of 2009, approximately 20 million mt of runof- mine ore had been placed under leach. The observed recovery from this uncrushed material, based on gold poured, was 37.3%. It is estimated that the ultimate recovery rate for the uncrushed run-of-mine ore already on pad will be more than 53%.

Jinshan will continue to explore the CSH 217 property during the 2010 field season within the 25-km2 licensed area immediately adjoining the mining permit. The first priority will be to drill several gold anomalies and carry out trenching along the surface strike extension of prospective stratigraphy that was defined by grid rock sampling during the previous field seasons. Deeper drill holes are also planned to explore for higher grades down dip.