31 Jul 2008 10:00
For Immediate Release 31 July 2008
China Goldmines plc
UNDERGROUND DEVELOPMENT WORK TO COMMENCE
AT GUANZHUANG GOLD PROJECT
China Goldmines plc ("CGM" or "the Company"; AIM: CGM), the resource company focusing on the discovery and development of gold projects in Hunan Province, announces that it has entered into a contract valued at approximately RMB 46million (USD 6.5m) with Hunan Tunnel Engineering General Corporation to construct a central decline and a 4km underground haulage level, known as "Highway -40", 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. This will also be the location of CGM's central processing facilities, including the large-scale processing facility (2,000tpd), offices and accommodation.
Highway -40 will commence at the Shen Jia Ya Mine and, closely following the main ore structure, will link all eight mines together underground, some 350m from the surface. It is anticipated that ore will be produced from the highway area as its development progresses.
In parallel, the Company will also develop declines from the De Sheng, Zheng Jia Shan, Jui Fa and Xiang Lu Mines to connect with Highway -40 to expedite the linkage between the mines and to accelerate ore production.
The construction is expected to take 18 months to complete and will coincide with the commissioning of the central processing facility.
Frank Vanspeybroeck, Chief Executive Officer of CGM, commented:
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For further information, please contact:
| China Goldmines plc | |
| Frank Vanspeybroeck (CEO) | +86 731 518 8200 |
| Alec Worrall | +44 207 788 7621 |
| Marinko Vidovich (CFO) | +61 8 6216 5200 |
| Changsha Office | +86 731 518 8200 |
| Brewin Dolphin Limited (Nominated Adviser) | +44 141 221 7733 |
| Alan Stewart (Corporate Finance) | |
| Parkgreen Communications | +44 20 7933 8780 |
| Sue Scott/Leah Kramer |