Sino Gold opens second gold mine in China

Sino Gold Mining Limited (SGX)<1862> has announced the directors' approval for the development of its US$55 million second gold mine in northern China.

The White Mountain Gold Project is a joint venture between SGX and a local partner. Located in Jilin Province, SGX owns 95% of White Mountain and will be funding the joint venture. The operating cost for the project is projected to be less than US$250 per ounce, and the company expects to product about 70,000 ounces of gold yearly.

The mobilization and site preparation of the While Mountain Gold Project is already in process, the company said, once approved by the local government, SGX will begin works at the mine. The Environmental Impact Assessment approval has already been obtained, and SGX said it expects the provincial project permit to make its appearance sometime within the next four to six weeks.

The commissioning of the mine is due to begin in late 2008, with commercial production to begin in early 2009.

Sino Gold Mining Limited is an Australia-based company, listed on the Hong Kong Exchange. It is engaged in the mining and processing of gold ore and sale of recovered gold, as well as exploration and development of mining properties.