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Sino Gold Limited (ASX:SGX) Announce "Sino Gold Fields Alliance" Joint Venture in China
Sydney, Jan 11, 2008 (ABN Newswire) - Gold Fields Limited ("Gold Fields") (NYSE, JSE, DIFX: GFI) and Sino Gold Mining Limited ("Sino Gold") (ASX: SGX)(SEHK: 1862) are pleased to announce the first joint venture entered into by the Sino Gold Fields Alliance ("SGF Alliance") in China.
Gold Fields is the single largest shareholder in Sino Gold. The SGF Alliance was established with the aim of discovering large gold deposits in China containing reserves of at least 5,000,000 gold-equivalent ounces with the potential to produce approximately 500,000 ounces per annum, exploring primarily for large bulkmineable styles of gold and/or gold-copper mineralisation.
During 2007, the SGF Alliance undertook a thorough analysis and ranking of 58 mineral belts in China. Four mineral belts were selected as priority belts for the SGF Alliance to explore.
The property to be explored by the SGF Alliance is the Bengge Exploration Licence, which is located in the Pulang Belt in Yunnan Province. The SGF Alliance will acquire an initial 20% from Kunming Jinsanjiang Mineral Products Company and has the right to acquire up to 97% upon meeting agreed expenditure milestones.
A number of porphyry copper-gold deposits are known within the same belt in Yunnan Province, most notably the world-class Pulang copper-gold deposit that contains more than 10 million gold-equivalent ounces. The Bengge property is located approximately 40km south-southeast of Pulang and approximately 400km northwest of Kunming, the provincial capital.
Bengge contains known porphyry gold-copper mineralisation which is hosted in sheeted arrays of parallel, low-sulphide, narrow quartz veins in several syenite intrusions.
Exploration aims to delineate a large deposit amenable to bulk, open-pit mining. Geological mapping, surface sampling, trenching and aditing have been undertaken at Bengge but not drilling.
Drilling at Bengge is intended to commence in mid-2008 following an initial exploration program to define drill targets and receipt of requisite approvals from the relevant Chinese authorities.
About Sino Gold Limited
Sino Gold has been active in China since 1996 and owns 82% of the Jinfeng gold mine in Guizhou Province, southern China, which has Mineral Resources containing 4.6 million ounces and Ore Reserves containing 3.2 million ounces. Jinfeng will be one of the largest gold mines in China when the project achieves planned initial production of 180,000 ounces per annum. Sino Gold aims to increase Jinfeng's gold production to optimal levels as quickly as possible.
The White Mountain project in Jilin Province, northeast China, is now being developed into Sino Gold's second mine.
In December 2007, Sino Gold completed the takeover of Golden China Resources Corporation and announced the Eastern Dragon acquisition. Sino Gold now has projects that provide a clear pathway for the Company to produce 500,000 ounces of low-cost gold annually by 2010.
Sino Gold is a producing gold company actively pursuing a discovery and acquisition strategy in China. With a "first mover" advantage, it holds a strong competitive position in China.
Sino Gold is listed on the Australian Securities Exchange (ASX Code: SGX) and the Stock Exchange of Hong Kong (SEHK Code: 1862).
About Gold Fields Limited
Gold Fields Limited is one of the world's largest unhedged producers of gold with attributable production of more than four million ounces per annum from eight operating mines in South Africa, Ghana and Australia.
A ninth mine, the Cerro Corona Gold/Copper mine in Peru, is expected to commence production by mid 2008 at an initial rate of approximately 400,000 gold equivalent ounces per annum.
The company has total attributable ore reserves of 92 million ounces and mineral resources of 252 million ounces.
Gold Fields employs some 47,000 permanent employees across its operations and is listed on the JSE Limited South Africa (primary listing), the New York Stock Exchange (NYSE) and the Dubai International Financial Exchange (DIFX).
All of Gold Fields' operations are ISO14001 certified. For more information please visit the Gold Fields website at http://www.goldfields.co.za
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