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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30238)	1/19/2007 10:03:10 AM
From: LoneClone	Read Replies (1) \| Respond to of 78421

Sino Gold to Develop Mine on Chinese Site By Charlotte Mathews 18 Jan 2007 at 09:26 AM EST resourceinvestor.com JOHANNESBURG (Business Day) -- Sino Gold [ASX:SGX; OTCPK:SIOGF], the Australian-listed gold company in which South Africa’s Gold Fields [NYSE:GFI] recently raised its shareholding, has almost doubled estimates of the gold contained on its White Mountain property in northeast China and plans to move rapidly towards developing a mine there, it said yesterday. Gold Fields reinforced its confidence in the company’s prospects in November by raising its stake to 17.4% from 13.9% previously at a cost of about R175 million (US$24.44 million). It was already Sino Gold’s biggest single shareholder. Sino Gold operated the Jianchaling Mine in China between 1996 and 2006 and is now developing the Jinfeng Mine in Guizhou Province, which should start to produce gold commercially in the current quarter. South African-based AngloGold Ashanti [NYSE:AU] also marked its interest in China last year with the purchase of an 8.7% stake in Dynasty Gold [TSXv:DYG]. Sino Gold said it had improved its estimate of mineral resources at White Mountain to 7.7 million tonnes containing 846,000 ounces of gold at 3.4 g/t compared with its December 2005 estimate of 3 million tonnes with 436,000 ounces of gold at 4.5g/t. Sino Gold CEO Jake Klein said the results were above expectations and the next step would be to apply for a mining licence. Evaluation of the project would continue this year, with the aim of starting to develop the mine later this year, if results continued to be positive and approvals were received in good time. Sino Gold’s shares were unchanged at A$6.40 yesterday on ASX, having added about 15% since Gold Fields bought additional shares at A$5.58 each. At prevailing prices, Gold Fields’ stake in Sino Gold is worth A$170 million (US$764.3 million).