Jinshan Gold sells Dadiangou Project to Gansu Zhongjin Gold Mining
Toronto-listed Jinshan Gold Mines (TSX: JIN announced that indirectly owned subsidiary Gansu Pacific Mining Co Ltd and its joint venture partner, Nuclear Industry Northwest Economic and Technology Co, have entered into an agreement to sell the Dadiangou gold project in Gansu Province, China.
The parties are selling the project to Gansu Zhongjin Gold Mining Co Ltd, a subsidiary of Shanhai-listed Zhongjin Gold Corp Ltd, a related party of China National Gold Group, for RMB 88 million , or C$13.1 million, 53 Percent of which Jinshan will be entitled to.
The Dadiangou gold project is an advanced exploration project located on a licensed area of 14.91 square kilometres in Gansu Province. The joint venture parties have identified a mineral resource on the property consisting of total 20.0 million tonnes of indicated resources at 0.87 grams per tonne for 544,910 ounces of contained gold and 16.6 million tonnes of inferred resources at 0.96 g/t for 497,950 ounces of contained gold, all at a 0.4 g/t cut-off.
Following the evaluation of the 2008 exploration program, the Dadiangou project fell below Jinshan's targeted tonnes contained threshold and ceased to fit the company's strategy.
Jinshan's principal property is the CSH gold mine in Inner Mongolia, China. Jinshan began producing gold at CSH in July 2007.
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