CGM.L Regulatory News (CGM)

28 Jan 2008 07:01

China Goldmines PLC28 January 2008 28 January 2008 China Goldmines plc ("China Goldmines" or the "Company") Gold Production Commences and Annual General Meeting Statement China Goldmines plc (AIM: CGM) announces that it has commenced production at itsGuanzhuang Gold Project at the Shenjiaya Prospect in the Hunan Province, China,by pouring 4kgs of gold from concentrate. The Company plans to make a further production run of 19kg from the concentrateafter the Chinese New Year on 16 February 2008. Full production from theCompany's Baomuyuan Plant at the Shenjiaya Prospect is anticipated to start fromearly April 2008. Frank Vanspeybroeck, CEO of China Goldmines, commented: "We are very proud ofthe achievement made by our management team and staff to transform the Companyfrom explorer to producer in the nation which is now the largest gold producerin the world." Statement for Annual General Meeting The Company's AGM will be held today in London, and Alex Worrall, Director, willchair the meeting. Mr Worrall will review the achievements since the last AGMand make the following statement: "China Goldmines plc has made substantial progress during the year with theexploration, evaluation and purchase of 8 gold mines from the successful capitalraising done in October of last year. "With the production of its first gold, the Company has achieved a majormilestone by transitioning from an explorer to a producer. In the coming year,the Company will focus on: Consolidation and refurbishment process with the aim of achieving its target of25,000 oz; Implementation of a rigorous training programme aimed at improving health andsafety procedures of the approximately 500 employees recruited following thetransfer of the mining licences. The Group has stated its intention toestablish more modern mining practices in its eight goldmines; Undertaking a vigorous exploration campaign to better define low grade surfacesoil anomalies and higher grade depth extensions by further infill drilling andexploratory development. "The Company expects 2008 to be a transformational year. With the price of goldhitting record highs and China Goldmines being based in the world's largest goldproducing nation, it looks forward to the future with confidence." Ends For additional information: China Goldmines plcFrank Vanspeybroeck (CEO) +86 731 518 8200Alec Worrall +44 207 788 7621Marinko Vidovich (CFO) +61 8 9488 8830Changsha Office +86 731 518 8200 Brewin Dolphin Limited +44 141 221 7733(Nominated Adviser)Alan Stewart (Corporate Finance) Parkgreen Communications +44 20 7851 7480Justine HowarthErica Nelson Notes to Editors China Goldmines plc is a UK mining company focussed on gold mining projects inthe China Region. The Company listed on AIM on 7 February 2006 as a goldresources company focussed on the discovery and development of gold projects inthe Hunan Province of China. The Company's Guanzhuang Gold Project, based on an Independent GeologicalReport, has an estimated inferred resource of 1.8 million ounces within the top325m from surface and over a strike distance of 1.5km has been identified fromits 100% owned/controlled Shenjiaya Prospect. The Company's target is to furtherincrease this resource by a factor of 4 to 6 times with a continuing explorationprogram. The Shenjiaya Prospect consists of eight gold mines which the Company plans toconsolidate with the aim of having a long life mining production of 150,000 ozAu/pa in the near future. At the same time as mining the existing eight mines,China Goldmines will continue to investigate the potential of the project areathat remains under explored. This information is provided by RNS The company news service from the London Stock Exchange