Just six months after pouring its first 500-oz. gold dor bar from the remote Chang Shan Hao mine in Inner Mongolia, Jinshan Gold Mines (JIN-T, JINFF-O) is off and running in China’s Gansu province with an initial National Instrument 43-101 resource estimate for its Dadiangou gold project.
The Dadiangou gold system, part of central China’s Qinling Fold Belt, has an inferred resource of 26.3 million tonnes grading 0.92 gram gold per tonne, or 778,000 oz. gold, at a cutoff grade of 0.4 gram gold per tonne.
Within that inferred resource, Jinshan delineated a higher-grade core of 1.9 million tonnes grading 2.48 gram gold and containing 152,000 oz. gold at the same cutoff grade.
Results from the resource estimate within the higher-grade zone indicate that it contains 20% of the total gold at Dadiangou within only 7% of the total tonnage, the company notes.
Jinshan says it will focus on expanding the deposit and preparing a preliminary economic assessment.
The resource estimate, completed by Geosystems International, relies on data from 51 drill holes totalling 11,685 metres.
If further studies show that mining the deposit will be economic, Jinshan envisions an open-pit, cyanide-leach gold operation.
Jinshan’s licence stretches across 15 sq. km and is owned by the Northwest Industrial Nuclear Economic Technical Corp.
Jinshan’s joint-venture agreement with Northwest allows the Canadian junior to earn a minimum of 80% on the property and Northwest to participate in the project at a level of 20%, or become diluted.
Dadiangou’s main mineralized shear zone is vertical to steeply north-dipping and spans 3,170 metres in strike length. Typical widths are 50 to 60 metres over two-thirds of its strike length, but can vary from 10 to 80 metres in width.
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