China Gold International Resources will use results from a recently completed drilling program at the Chang Shan Hao (CSH) Gold Project in Inner Mongolia to complete an updated mineral resource estimate below the existing open pit. 1

The program of 108 diamond holes for 59,145 metres was completed in November and returned intercepts including 185.58 metres @ 0.93 grams/tonne and 177.32 metres @ 0.77 grams/tonne gold. It was designed to define and expand the current resource at the operation.

China Gold’s chief executive officer Dr Xin Song says, “The results indicate that the gold mineralization is continuous and the gold grade has improved at depth beneath the current open pit operation and provides confidence that the resource at CSH should increase.

“With a growing gold resource and the recent increases in mine water supply, we look forward to potentially further expanding the daily mine production capacity from its current 30,000 tonnes.”

Due to the large amount of samples to be assayed the company employed two internationally recognized Chinese laboratories, SGS Tianjin and ALS Chemex Guangzhou. In a further quality control and assurance measure, about 10% of the samples that were assayed above 0.2ppm gold were checked by a third laboratory ITS Shanghai.

The open pit, heap leaching gold mine, which began commercial production in 2008, is about 210km northwest of the city of Baotou, on the southern edge of the North China gold belt. This belt also hosts the multi-million ounce Oyu Tolgoi gold/copper mine in southern Mongolia.

A new major water supply, secured after the local government completed construction of a new dam on the nearby Muleng River, has ensured the mine’s future expansion, with annual production already at 125,000 ounces. Limited water supply at the mine site had threatened future production increases.

In other news, the company’s chairman and former chief executive officer, Zhaoxue Sun, has been honoured as one the top 10 Chinese economic figures for 2011. Since becoming the president of China National Gold Group Corporation (CNG) in 2006, Zhaoxue Sun has made great achievements in growing CNG into the largest gold producer in China.

The annual CCTV Chinese economic figures have been announced for the past 12 years. It recognizes the leaders and best practitioners who have changed the developing mode of China during the year.