miningnews.netThis bodes well for us SGX holders.All systems go...

miningnews.net

This bodes well for us SGX holders.

All systems go for Sino
Rebecca Lawson
Monday, 14 May 2007

THE last hurdle for China-focused Sino Gold has been cleared, with the Chinese environment bureau giving the thumbs up to Jinfeng gold project's carbon-in-leach tailings dam, with the way now clear for commercial gold production.

Speaking to MiningNews.net, Sino chief executive Jake Klein said he was "absolutely ecstatic" that the approval has been given and the discharge to the dam has now started.

"The authorities came out on May 10 and gave approval on May 11," he said.

"We've been engaging them and speaking to them and making sure we did meet their requirements.

"We're really now on track, everything is now going according to plan.

"We're going to have to wait and see what we produce over the next couple of weeks … but there's no reason why we can't run the plant on a full-time basis now."

Klein added that there was no change to Sino's original capital cost estimate of $US95 million ($A114 million).

Jinfeng has a resource of 28.6 million tonnes at 5 grams per tonne gold for 4.6 million ounces of contained gold. Klein said an upgraded reserves statement is expected over the next few weeks.

The project is one of the largest gold mines in China and initial production is expected to be 180,000t per annum, and is planned to be ramped up to 1.5Mtpa.

Shares in Sino climbed 8c to $5.63 in lunchtime trading today.