- Jinshan Gold Mines (TSX:JIN) is pleased to announce that Gansu Pacific Mining Co. Ltd. (a indirectly owned subsidiary of Jinshan) 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 Zhongjin Gold Corporation Limited, a company listed on the Shanghai Stock Exchange and a related party of China National Gold Group, following an auction process and review and consideration by the independent members of the board of the company. The purchase price is RMB 88 million (Cdn.$13.1 million), of which the Company will be entitled to 53%, or RMB 46.6 million (Cdn.$7 million).

The Dadiangou gold project is an advanced exploration project located on a licensed area of 14.91 km

in Gansu Province, China. The joint venture parties had 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 grams per tonne for 497,950 ounces of contained gold, all at a 0.4 gram per tonne cut-off. Following the evaluation of the 2008 exploration program, the Dadiangou project fell below Jinshan’s targeted tonnes contained threshold and did not fit the company’s strategy. The transaction is subject to regulatory approvals, including Chinese government approvals for the transfer of the relevant exploration license and requirements of the Toronto Stock Exchange.