Sino Gold Limited (SGX) –Targeting an achievable 500,000ozpa within 3 years

• The Mining Licence (ML) approval for Sino Gold’s Jinfeng was received on 16 June 2005 on the basis of a 12-year life treating 1.2mtpa to produce 180,000ozpa from about SQ 2006. During the approval period, a scoping study was completed in November 2004 on Phase 2, being a 50% expansion of Jinfeng to 1.8mtpa to produce ~300,000ozpa from MQ 2008 by bringing in the underground earlier.
• White Mountain in Jilin Province is showing signs that it could become SGX’s next gold mine, with a fairly consistent width of about 20m at grades >4g/t (two intersections in JQ 2005 were 20.4m @ 8.2g/t and 21.2m @ 5.8g/t) extending over at least 1.1km (and still open on strike and at depth). Should it be capable of achieving production rates of ~150,000ozpa, then Sino Gold may be able to achieve its target of 500,000ozpa of production as soon as 2008.
• The construction of Jinfeng has started in earnest and already the bulk earthworks are 75% complete. In doing so, the orebody has been exposed and with it a number of ore zones and splays that were not in the original model, inferring that the strip ratio may be lower than the expected average of 13 to 1, which should reduce costs and result in additional mill feed.
• SGX’s experience in achieving MLs at both Jinfeng and Zhangjiashan within one year of the EL being granted implies that the White Mountain ML may be achieved within one year (since it already has its EL), and hence White Mountain could be in production by 2008, especially since it appears to be free milling (not refractory). Sino Gold are aiming to delineate a 1moz resource and conduct feasibility studies at White Mountain by 2006, possibly develop in 2007 and start production in 2008.
• SGX has an extensive exploration programme at Jinfeng and its surrounding region in Guizhou Province. Aside from the deep drilling already extending the main Jinfeng orebody 120m deeper, there are numerous drill-ready targets within a total area exceeding 530sq km mainly covering parts of southern Guizhou.