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Golden China Resources Corporation

Publié le 12 avril 2007

Beyinhar Project Scoping Study Indicates Production Costs of US$280/oz

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Golden China's Beyinhar Project Scoping Study Indicates Production Costs of US$280/oz

Company Commences Feasibility Study


Toronto, Ontario, April 12th, 2007 - Golden China Resources Corporation (GCX: TSX; ASX) today announced results of a preliminary assessment (scoping study) on the oxide resource at its Beyinhar gold project located in the Chinese province of Inner Mongolia. As a result of the positive outcome of the study, which indicates gold production costs of between $US260/oz and $US280/oz, the company has initiated a Feasibility Study (FS), which is expected to be completed by the end of 2007.

"We are extremely encouraged by the results of the scoping study, particularly with the fact that Beyinhar has the potential to produce gold at a cash cost of US$280 per ounce or less, which is consistent with other mines in the area." said Greg Starr, President and Chief Executive Officer of Golden China. "We look forward to the continuing development of the Beyinhar Mine with the completion of the Feasibility Study later this year. Golden China is targeting to develop its mining production to 100,000 ounces per annum by 2009 through Beyinhar alone, which alongside anticipated results from our other projects, will cement the company's foothold as one of the major gold producers in China."
 
The Scoping Study evaluated 9 potential mining and processing scenarios comprising various permutations on Dump Leaching, Heap Leaching and CIL, with an estimated accuracy of +/-30%. The outcome of the Study has indicated Heap Leaching as the best process and p roposes two stages of project development. The first stage, is based on Beyinhar's current resource, envisages a production rate of 2.5 million tonnes per annum (tpa), subsequently building to a production rate of 5 million tpa, with gold production of 100,000 ounces per annum once the Beyinhar resource increases in size. 

The results of the study are as follows:

 

Initial Development

Stage 2 Development

Mine production (tpa)

2,500,000

5,000,000

Stripping ratio

1.3:1

1.3:1

Gold recovery (%)

80

80

Annualised gold production (ozs)

>50,000

100,000

Estimated cash costs ($US/oz)

270 - 280

260 - 270

Estimated capital cost (M $US)

22

29


In light of the favourable results of the study, which indicate that the Beyinhar gold project could be developed as an open cut and heap leach operation, Golden China has begun the metallurgical and engineering components of a NI 43-101 compliant study on the oxide resource at Beyinhar. The proposed timetable for the study is as follows:

  • Metallurgical testwork - Ongoing - SGS Lakefield Oretest Pty Ltd
  • Updated 43-101 Resource - September 2007 - GeoSystems International, Inc
  • Mine Design - October 2007 - Orelogy Pty Ltd
  • Engineering Study - November 2007 - Kappes Cassiday Associates, Australia Pty Ltd
  • Feasibility Study completion - December 2007 
  • EIS - March 2008 - Australasian Pacific Environmental Consultants Pty Ltd

Subject to the completion of the Feasibility Study in December 2007, final engineering design and project approvals would then commence and proceed in tandem. Current scheduling indicates construction commencing in April 2008, with commissioning by the end of 2008.

Scoping Study

The metallurgical testwork for the Scoping Study was carried out by SGS Lakefield Oretest, (SGS) in Perth, on a 160kg composite drill core sample from the oxide zone at Beyinhar. The initial column leach  testwork was carried out on a 12.5 mm crushed composite oxide ore sample from Beyinhar.  This testwork achieved gold recoveries of between 82% and 85% over a 45 day period as indicated below:

THIS PRESS RELEASE CONTAINS MAPS.  CLICK HERE TO VIEW ORIGINAL PDF VERSION OF THIS PRESS RELEASE.

The inputs for the capital and operating costs for the process options of Dump Leach, Heap Leach and CIL was provided by KCAA in Perth. KCAA is the Australian subsidiary of Kappes Cassiday and Associates, of Reno, Nevada, one of the foremost gold heap leach specialists in the world. The mine operating costs and pit optimisations were provided by Orelogy Pty Ltd, a mine design and consulting group based in Perth. The mining operating costs were based on a contract mining scenario.

A complete version of the NI 43-101 compliant scoping study will be available on Golden China's website (www.goldenchina.ca) as well as on SEDAR (www.sedar.com) in coming weeks. 

2007 Drilling Programme Commences

At the current time, the resource at Beyinhar comprises an initial mineral resource within the largely oxide, near-surface zone of a measured and indicated resources of 475,000 contained ounces and an inferred resource of 130,000 ounces, at a 0.30g/t Au cut-off:

 

Measured 

Indicated

 Measured+Indicated

Inferred

Cutoff

(g/t)

M

Tons

 

Au Grade

(g/t)

M

Tons

 

Au Grade

(g/t)

M

Tons

 

Au Grade

(g/t)

000,  Ounces

Au

MTons

 

Au Grade

(g/t)

000, Ounces

Au

0.3

4.7

1.00

12.8

0.78

17.6

0.84

475

7.5

0.54

130


The 2007 drilling programme commenced on 22nd March 2007 and is scheduled to complete over 17,000 metres within the defined Beyinhar Central Zone, as well as an extended programme on the new Beyinhar South West exploration license. Additional deeper holes, between 120 metres and 150 metres deep, will be drilled to increase the resource within the recently discovered sulphide zone below the oxide resource.

An updated NI-43-101 mineral resource estimate is scheduled for completion in September 2007. This work will be carried out by Mario Rossi of GeoSystems International.

The objective of the 2007 drilling programme is to increase the Beyinhar resource from the current resource level (as indicated in the table above) to a target of over one million ounces in the Measured and Indicated categories by September 2007.  An updated NI 43-101 compliant mineral resource estimate is scheduled for completion in September 2007.  This work will be carried out by Mario Rossi of GeoSystems International. 

Core from the new drilling programme, in combination with a bulk sample from the existing open-cut mine on the site, will be used to provide a bulk metallurgical sample for the DFS. This sample will be sent to Perth for metallurgical testwork with SGS. KCAA will then carry out the engineering and infrastructure aspects of the FS. Orelogy will utilize the updated September 2007 resource model to carry out the mine design and scheduling.

On-going Metallurgical Testwork on Sulphide ores

As announced in Golden China's press release of February 1, 2007, the company also encountered high-grade sulphide mineralization below the project's near-surface oxide gold deposit. Metallurgical samples from this deeper sulphide zone will be tested over the course of the next few months to determine its suitability for heap leach processing. These results should be available by July 2007.

About Beyinhar

Golden China's 95% owned Beyinhar gold project lies within the Inner Mongolia Fold Belt Region, a productive orogenic belt hosting several skarn, shear-hosted, orogenic/mesothermal veins and porphyry Cu-Au deposits. This Fold Belt region hosts the world-class Oyu Tolgoi copper-gold deposit (1.15 billion tonnes @ 1.27 % Cu and 0.48 g/t gold), and CSH 217 shear-hosted gold deposit (83 million tonnes @ 0.82 g/t gold).  Inner Mongolia is a province of the People's Republic of China, not Mongolia. 

The Beyinhar project is well supplied by existing infrastructure and services. The site is located 365km from Hohhot, the Provincial capital and has a bitumen road passing within 1km of the deposit. A new 110KVa power line has recently been constructed within 7km of the site and a potential water source lies some 30km to the NW. The town of Sonid Youqi, comprising some 16,000 persons, is located only 50km to the south west. The large city and airport at Xilinhot is only a 2 hour drive to the north east.

The Beyinhar gold property covers an exploration license of approximately 49.45 km2, with a 1.5 km2 mining lease inside this exploration permit.

THIS PRESS RELEASE CONTAINS MAPS.  CLICK HERE TO VIEW ORIGINAL PDF VERSION OF THIS PRESS RELEASE.

Qualified Person

Mr. Peter Secker, BSc (Hons) Mining Engineering, MAusIMM, is Golden China's Vice President of Exploration and Development and its qualified person as defined by National Instrument 43-101.  Mr. Secker is overseeing the company's exploration work at Beyinhar and supervised the preparation of the information in this release.  

About Golden China Resources Corporation:

Golden China Resources Corporation is a significant participant and consolidator in the Chinese precious metal industry and one of the largest producers of gold in China. The company is using its extensive knowledge of the Chinese marketplace and best practices based on established international standards in building a diversified gold business focused on exploration and development, operations, and corporate development in the Chinese precious metal industry.  Golden China's shares are listed on the main boards of both the Toronto and Australian Stock Exchanges under the symbol GCX.

For further information please contact:

Golden China Resources Corp.
Kristen (Boucher) Humphrey
Communications Manager
Tel: 416.366.8818 ext. 230 
khumphrey@goldenchina.ca
www.goldenchina.ca

or 

Renmark Financial Communications Inc.
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Neil Murray-Lyon : nmurraylyon@renmarkfinancial.com
Tel.:  514.939.3989
Fax:  514.939.3717
www.renmarkfinancial.com

Forward-Looking Statements:  Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulatory authorities.  The forward looking statements in this release and documents referred to herin relate to future events or the Corporation's future performance and reflect expectations and assumptions regarding the growth, results of operations, performance, prospects and opportunities of the Corporation. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to: uncertainties and costs relating to exploration and development activities; uncertainties related to feasibility and other studies that provide estimates or expected or anticipated economic returns from a mining project; uncertainties related to the accuracy of mineral reserve and mineral resource estimates; changes in, and the effects of, the laws, regulations and government policies affecting mining operations; general business, economic, competitive, political and social uncertainties; future prices of gold; fluctuations in currency exchange rates (principally US$ and the Chinese Renminbi/Yuan); labour difficulties, environmental hazards, industrial accidents or other events or occurrences that interrupt project schedules. Although the Corporation has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause results, performance or ac hievements not to be as anticipated, estimated or intended. There can be no assurance that actual events, performance or results will be consistent with these forward-looking statements and accordingly readers should not place undue reliance on forward-looking statements. The Corporation assumes no obligation to update or revise forward-looking statements to reflect new events or circumstances, except as required by law. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.  The Company does not assume the obligation to update any forward-looking statement.

THE TSX HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.

Golden China Resources Corporation

CODE : GCX.TO
CUSIP : 38081U 10 5
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Golden China Res. est une société développant des projet miniers d'or basée au Canada.

Golden China Res. détient divers projets d'exploration en Argentine et en Chine.

Ses principaux projets en exploration sont USPALLATA GRABEN et LOS MENUCOS (EL PUESTO ET AL.) en Argentine et NIBAO en Chine.

Golden China Res. est cotée au Canada et en Australie. Sa capitalisation boursière aujourd'hui est 28,4 millions CA$ (28,7 millions US$, 20,0 millions €).

La valeur de son action a atteint son plus bas niveau récent le 08 février 2002 à 0,01 CA$, et son plus haut niveau récent le 22 décembre 2006 à 2,00 CA$.

Golden China Res. possède 23 435 931 actions en circulation.

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Financements de Golden China Resources Corporation
24/05/2007Closes Private Placement Offering
Nominations de Golden China Resources Corporation
05/04/2007Appoints Frank Chen as CFO
Rapports Financiers de Golden China Resources Corporation
15/05/2007Releases Third Quarter 2007 Results
Projets de Golden China Resources Corporation
02/08/2007(Beiyinhar)returns best ever intercept at Beyinhar: 68m @ 5.3g/t, incl...
12/04/2007Beyinhar Project Scoping Study Indicates Production Costs of...
Communiqués de Presse de Golden China Resources Corporation
13/11/2007Releases Fiscal 2008 Q1 Results
29/10/2007 Releases September 2007 Quarterly Update Report
31/08/2007 Files Preliminary Final Report
03/08/2007Issues Common Shares in Payment of Debenture Interest
26/07/2007Releases June 2007 Quarterly Update Report
09/07/2007Vicarage Capital Publishes Research on Golden China Resource...
19/06/2007and BacTech Agree to Amend Exclusive Licensing Agreement for...
05/06/2007Drilling Continues to Intersect Wide Oxide and Sulphide Gold...
17/05/2007Additional Exploration License Granted at Golden China?s Bey...
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