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31 Jul 2008 10:00
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For Immediate Release 31Β July 2008
China Goldmines plc
UNDERGROUND DEVELOPMENTΒ WORK TOΒ COMMENCE
Β AT GUANZHUANG GOLDΒ PROJECT
China Goldmines plc ("CGM" or "the Company"; AIM:Β CGM),Β the resource company focusing on the discovery and development of gold projects in Hunan Province,Β announcesΒ that itΒ has entered into a contract valued at approximatelyΒ RMBΒ 46million (USDΒ 6.5m) with Hunan Tunnel Engineering General Corporation to constructΒ a central decline and a 4km underground haulage level, known as "HighwayΒ -40",Β for its Guanzhuang Gold Project.
The central decline will be located at the Zheng Jia Shan mine, halfway along the strike of the main ore body.Β ThisΒ willΒ also be the location of CGM'sΒ central processing facilities,Β including theΒ large-scaleΒ processing facilityΒ (2,000tpd), offices andΒ accommodation.
HighwayΒ -40Β willΒ commenceΒ atΒ theΒ Shen JiaΒ YaΒ MineΒ and, closely following the main ore structure,Β will link all eight mines together underground, some 350m from the surface.Β It is anticipated that ore will be produced from the highway area asΒ itsΒ development progresses.
In parallel, the Company will also develop declinesΒ fromΒ theΒ DeΒ Sheng, Zheng JiaΒ Shan, Jui FaΒ and Xiang Lu Mines to connect with HighwayΒ -40 to expediteΒ the linkage between the mines andΒ to accelerateΒ oreΒ production.
TheΒ constructionΒ is expected toΒ take 18 months to complete and will coincide with theΒ commissioningΒ of the central processing facility.
Frank Vanspeybroeck, Chief Executive Officer of CGM, commented:
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- Ends -
For furtherΒ information, please contact:
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China Goldmines plc |
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Frank VanspeybroeckΒ (CEO) |
+86 731 518 8200 |
|
Alec Worrall |
+44 207 788 7621 |
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Marinko Vidovich (CFO) |
+61 8 6216 5200 |
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ChangshaΒ Office |
+86 731 518 8200 |
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Brewin Dolphin Limited (Nominated Adviser) |
+44 141 221 7733 |
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Alan Stewart (Corporate Finance) |
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|
Parkgreen Communications |
+44 20 7933 8780 |
|
Sue Scott/Leah Kramer |
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