China Goldmines shares rocket - Wednesday 25th July 2007

Shares of China Goldmines rose sharply following the company's resource estimate announcement from the Guanzhuang gold project.

They increased by 52.97 per cent to 167.5 pence on London's Alternative Investment Market today (Tuesday July 24th) after the firm released an estimate of 5.1Mt at 11 grams per tonne of gold, the Mining Journal reports.

Chief executive Frank Vanspeybroeck commented: "The conclusions from this report have exceeded our original expectations. Our milestone is to create a multi Moz gold resource and we now have confirmation that this is achievable in the near term."

The report also suggested that resources at the project could greatly increase following further expansion.

Meanwhile, Sino Gold Mining recovered almost 10,000 ounces of gold from the Jinfeng gold mine in southern China, which is thought to contain up to 3.2 million ounces of ore reserves.

This makes it potentially one of the country's biggest gold mines.

According to the China Gold Association, the country produced 11 per cent more gold in the first five months of this year than during the same period a year ago.
Goldbug, 25 Jul '07

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