Jinshan Gold Mines (JIN-T, JINFF-O) has defined a higher-grade core zone within its Dadiangou gold deposit in China’s Gansu province that is likely to enhance the project’s economics. The higher-grade core zone contains about 60% of the deposit’s total resource, within 25% of the total tonnage.
According to the new resource estimate, infill drilling has expanded the deposit’s total resource by 34%. At a 0.4 gram gold per tonne cutoff, Dadiangou has indicated resources of 20 million tonnes grading 0.87 gram gold per tonne for 545,910 oz. gold. In the inferred category, the deposit holds 16.6 million tonnes grading 0.96 gram gold for 497,950 oz. gold.
The higher-grade core zone, at a 1-gram gold cutoff, contains 5.6 million tonnes of 2.05 grams gold in the indicated category (for 369,250 oz. gold). The inferred resource is 3.8 million tonnes grading 2.07 grams gold for 253,560 oz.
Dadiangou is owned by Jinshan’s partner, the Northwest Industrial Nuclear Economic Technical Corp., a division of the Shaanxi Nuclear Geology Bureau of China.
Under the joint-venture agreement, Jinshan can earn a minimum of 80% on the property, with Northwest Industrial having the option to participate at 20%, or become diluted.
Jinshan is now working on a preliminary economic assessment and preparing a Chinese resource report and scoping level economic study to support an application for a Chinese mining licence.
China National Gold, a Chinese state-owned enterprise and the largest gold producer in China, owns about 42% of the Canadian junior and its president, Sun Zhaoxue, is also Jinshan’s chief executive.
China National controls 20% of gold production in China, 30% of its known reserves and operates 65 mines.
At presstime, Jinshan was trading at about 43¢ per share. Over the last year, the Vancouver-based junior has traded between 39¢ and $3.13 per share.
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