AFCAN MINING CORPORATION
TSX : AFK

AFCAN MINING CORPORATION

June 22, 2005 09:32 ET

AFCAN: Construction of China TJS Gold Mining Project on Schedule

TORONTO, ONTARIO--(CCNMatthews - June 22, 2005) - AFCAN Mining Corporation (TSX:AFK) is pleased to announce that construction of the TJS Gold Mine in Qinghai Province, China is proceeding on schedule for completion in the 3rd quarter, 2006. The mine will produce 140,000 ounces of gold in the first year.

Construction activities have begun on site with the civil earthworks contractor mobilising and commencing work on the plant site and accommodation blocks. The engineering, construction and procurement management (EPCM) contractor, BGRIMM (a Chinese company) is on schedule with engineering design and the procurement process has commenced. BGRIMM is being supervised by GBM-MEC (a UK company) as the owner's representative.

The 35 kV power supply transmission contract was issued to the Qinghai Power Design Institute for the design and construction of a 39 km power line to connect to grid power. The SAG mill which is located in South Africa has been moved to the engineering workshops for refurbishment which has commenced. An order has been placed for a new variable speed motor for this mill. The mill is expected to be shipped in September.

Work has commenced to appoint an interim mining contractor to start the pre-strip and to supply material for the construction of the tailings dam. Meanwhile, the selection of the on-going mining contractor has also commenced. Sterilisation drilling on the infrastructure sites is almost completed.
A review of initial waste dump locations is being undertaken to accommodate the timeliness of the sterilisation programs as most ground adjacent to the pits is very prospective.

At the 31st May, 2005 progress in the various areas was as follows:



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% Progress to May 31st % Planned to May 31st
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Engineering 30.34 22.94
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Procurement 12.26 16.08
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Overall 12.48 10.56
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Exploration activities consisted of preparation for drilling in June with the arrival of two drill rigs. After sterilisation drilling of the planned infrastructure, the drill rigs will move to drilling the Qinlongtan extensions. Q1, under contract from Afcan, commenced their exploration work programmes at Xijingou, Juebigou and Qinlongtan during May.

The President and CEO of Afcan, David G. Netherway stated, "It is extremely satisfying to have commenced construction and to be on target for our first gold pour in Q3 2006."

AFCAN is an emerging gold producer in China and owns 85% of the TJS Project at Tanjianshan in Qinghai Province. Afcan has agreed an offer from Eldorado Gold Corporation (TSX: ELD, AMEX: EGO) whereby Afcan will become a wholly owned subsidiary of Eldorado. A Bankable Feasibility Study has been completed on the Project and construction has commenced. There are 23 additional anomalies on the 341 km2 licence currently under investigation. Afcan is focused on further growth through the exploration and development of this advanced project.

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Contact Information

  • Afcan Mining Corporation
    David Netherway
    President and Chief Executive Officer
    (416) 360-3404
    or
    Afcan Mining Corporation
    Benoit La Salle, CA
    Chairman
    (514) 744-4408
    info@afcan-mining.com