Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

June 17, 2010 09:10 ET

Jinshan Announces New Drill Program for Its CSH 217 Gold Mine, China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2010) - Jinshan Gold Mines Inc. (TSX:JIN) is pleased to announce that it has initiated a new drill program at its CSH 217 gold mine in Inner Mongolia, China. The company has engaged a third party (Sinorex Drilling (Beijing) Co., Ltd.) as its drill contractor. The new exploration program consists of 4,500 meters of diamond drilling and 2,000 cubic meters of surface trenching with a budget at 4.86 million RMB Yuan (USD$712,000). The program is focused on two targets: one is to test the mineralization at depth in both the NE deposit and SW deposit and the other is to test a possible new zone of mineralization to the north of the SW deposit.

Based on all previous drilling, the gold mineralization at the CSH mine is fully open at depth and in places the gold grade tends to increase down dip. Significant potential exists for down-dip extensions to the mineralization. The other target is located about 300 meters north of the SW zone, and has been designated the NW Zone. This zone is outside the current Mining Permit, but still within the company's existing Exploration Permit. No drilling has been done in the NW Zone, but some trenching was done by the company's Chinese JV partner in 2000. The current work program including surface trenching and diamond drilling will confirm the existence and extent of the NW zone gold mineralization.

"With this new round of drilling started, we are looking to further expand the resources at the CSH mine both down depth and in a new zone. There is significant potential for growth on the CSH project," said Jinshan's CEO, Dr. Xin Song.

The new drill program started in early June and is scheduled for completion by the end of October, 2010. Initial results from the program are expected by the end of the year.

Qualified Persons

Mario Rossi, M.Sc., Min. Eng., of Geosystems International Inc., an Independent Qualified Person as defined by National Instrument 43-101 has reviewed the drill program,supervised the preparation of the scientific and technical information and verified the data supporting such scientific and technical information contained in this news release. 

About Jinshan

Jinshan is a mining company whose principal property is the CSH Gold Mine. Jinshan began producing gold at the CSH Gold Mine in July 2007. Jinshan's shares are listed on the TSX under the symbol "JIN".

Forward Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws and regulations including, but not limited to, statements with respect to exploration programs and potential extension of mineralized zones at CSH. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects", "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipate", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. The above statements are based on the current expectations and beliefs of Jinshan's management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Forward-looking statements are based on a number of material factors and assumptions, including the result of drilling and exploration activities, results of studies and that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for production is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that no unusual geological or technical problems occur , that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include those matters identified as risk factors in Jinshan's Annual Information Form and MD&A, as well as the following: changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration. Although Jinshan has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Jinshan does not assume any obligation to update forward-looking statements, except to the extent required by applicable securities laws.

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