Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

March 07, 2005 07:30 ET

Jinshan Gold Mines: New Independent Estimate Doubles Measured and Indicated Resources at 217 Gold Project to 2.2 Million Ounces; Inferred Resources Also Increased to 1.0 Million Ounces


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: JINSHAN GOLD MINES INC.

TSX VENTURE SYMBOL: JIN

MARCH 7, 2005 - 07:30 ET

Jinshan Gold Mines: New Independent Estimate Doubles
Measured and Indicated Resources at 217 Gold Project
to 2.2 Million Ounces; Inferred Resources Also
Increased to 1.0 Million Ounces

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Jinshan
Gold Mines Inc. (TSX VENTURE:JIN) is pleased to announce that a new,
independent resource estimate on the company's 217 Gold Project (Chang
Shan Hao Project) in Inner Mongolia, China, has more than doubled the
project's measured and indicated resources to approximately 2.2 million
ounces and also has increased the project's inferred resource to
approximately 1.0 million ounces.

The measured and indicated resources at the 217 Project have been
increased to 83 million tonnes grading 0.82 grams per tonne (g/t) gold,
for contained gold content of approximately 2.2 million ounces. In
addition, the project contains an estimated 37 million tonnes of
inferred resources grading 0.89 g/t gold, for an additional contained
gold content of approximately 1.0 million ounces. The estimates were
calculated using a cut-off of 0.5 g/t gold and a gold price of US$400
per ounce. The new resource estimate was calculated by Mario E. Rossi,
of GeoSystems International Inc., Florida, USA, a qualified person as
defined by National Instrument 43-101, based on the results from a
drilling program that was undertaken in 2004. To date, 20,488 metres of
drilling has been completed at the project.

The new resource estimate was constrained using a mineralized envelope
defined at 0.20 g/t gold, and interpreted on 50-metre sections. Gold
grades were interpolated within the mineralized envelope using a
combination of indicator and ordinary kriging methods
(Indicator-modified Ordinary Kriging). The in-situ dry density values
used were 2.65 tonnes per cubic metre (t/m3) for the oxide
mineralization and 2.75 t/m3 for the sulphide mineralization. A grade
capping of 5.0 g/t gold was applied, which removes about 3% of the
in-situ contained gold in the database. The resources have been diluted
to accommodate a bulk-mining production plan.

The resources have been classified using an index of drill-hole data
configuration, which is based on multiple kriging passes. Measured
resources are those within an ellipsoid 40x16x28 metres and a minimum of
five composites and three octants informed; indicated resources are
defined as estimated within 120x48x84 metres with a minimum of three
composites and two octants informed; and inferred resources are defined
as estimated within an ellipsoid 200x80x140 metres, and with two
composites minimum informed. In all cases, the search ellipsoids were
orientated along the strike of the mineralization.

Additional details of the new resource estimate are contained in a
Technical Report that will be filed on SEDAR within 30 days. The new
Technical Report will address the requested clarification of, and
justification for, certain assumptions made in the February 18, 2004,
Technical Report that formed the basis for an earlier resource estimate
in respect of the 217 Project (see Jinshan's January 14, 2005, news
release).

The 217 gold deposits still remain open in some areas. Although the gold
generally appears mostly as freely disseminated throughout the deposits,
further upside to the project economics lies in determining a potential
milling flow sheet to maximize recoveries of sulphide-bearing material.
Ongoing metallurgical studies indicate that the entire deposit should be
amenable to heap leaching at a 1/4-inch to 1/2-inch crush size.
Optimization studies have commenced and will continue concurrently with
proposed start-up of heap-leach mining operations. Bulk-tonnage and
column-test metallurgical studies have commenced to provide a better
understanding of run-of-mine (ROM) operating parameters.

Open-pit pilot mining was completed at the project in late 2004. The
operation produced approximately 100,000 tonnes of oxidized
mineralization for heap-leach/ bulk-tonnage trials that are set to
commence by May, 2005. The pilot project was undertaken to advance
scoping/feasibility studies and permitting toward full-scale mining. The
pilot program was designed to test a targeted, commercial production
rate of 100,000 ounces per year.

Jinshan holds the right to acquire a 96.5% interest in the 217 Project.
Ivanhoe Mines has the right to participate in the project on a 50/50
basis.



Estimated Measured, Indicated and Inferred Resources for the 217 Gold
Project at various cut-off grades.

----------------------------------------------------------------
Measured +
Measured Indicated Indicated
----------------------------------------------------------------
Gold Gold
Cutoff Million Grade Million Grade Million
(g/t) Tonnes (g/t) Tonnes (g/t) Tonnes
----------------------------------------------------------------
0.3 22.4 0.75 82.3 0.74 104.7
----------------------------------------------------------------
0.4 20.7 0.78 76.5 0.76 97.2
----------------------------------------------------------------
0.5 17.6 0.84 65.0 0.81 82.7
----------------------------------------------------------------
0.6 13.7 0.92 50.4 0.88 64.1
----------------------------------------------------------------
0.7 10.3 1.01 37.3 0.97 47.7
----------------------------------------------------------------
0.8 7.7 1.10 26.9 1.05 34.6
----------------------------------------------------------------
0.9 5.7 1.19 18.6 1.14 24.3
----------------------------------------------------------------
1.0 4.1 1.28 12.6 1.24 16.8
----------------------------------------------------------------


----------------------------------------------------------------
Contained Contained
Gold Inferred Gold
----------------------------------------------------------------
Gold Million Gold Million
Cutoff Grade Ounces Million Grade Ounces
(g/t) (g/t) Gold Tonnes (g/t) Gold
----------------------------------------------------------------
0.3 0.73 2.46 52.4 0.74 1.25
----------------------------------------------------------------
0.4 0.76 2.38 42.9 0.83 1.14
----------------------------------------------------------------
0.5 0.82 2.18 36.5 0.89 1.04
----------------------------------------------------------------
0.6 0.89 1.83 31.4 0.95 0.96
----------------------------------------------------------------
0.7 0.98 1.50 24.6 1.03 0.81
----------------------------------------------------------------
0.8 1.06 1.18 19.8 1.10 0.70
----------------------------------------------------------------
0.9 1.16 0.91 14.7 1.19 0.56
----------------------------------------------------------------
1.0 1.25 0.68 10.0 1.30 0.42
----------------------------------------------------------------


The footnotes below apply to the resource table.

1) The resources reported above for the 217 Deposit were estimated by
Mario E. Rossi, GeoSystems International, Inc., in February, 2005.

2) The contained gold represents estimated contained metal in the ground
and has not been adjusted for mining or metallurgical recoveries.

3) Resource classifications conform to CIM Standards on Mineral
Resources and Reserves referred to in National Instrument 43-101.
Mineral resources that are not reserves do not have demonstrated
economic viability. Measured and indicated mineral resources are that
part of a mineral resource for which quantity and grade can be estimated
with a level of confidence sufficient to allow the application of
technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. An inferred mineral
resource is that part of a mineral resource for which quantity and grade
can be estimated on the basis of geological evidence and limited
sampling and reasonably assumed, but not verified.

About Jinshan

Jinshan Gold Mines is a Canadian company focused on the exploration and
development of precious and base metals (gold, copper and platinum group
metals) in China. The company also is conducting exploration work on
prospective properties in Xinjiang, Yunnan, Shandong, Liaoning, Guizhou
and Inner Mongolia, in China.

Mario Rossi, a qualified person as defined by National Instrument
43-101, supervised the preparation of the information in this release.

Jinshan shares are listed on the TSX Venture Exchange under the symbol
JIN.

Forward-Looking Statements: Statements in this release that are
forward-looking statements, including the ongoing and planned
exploration and development work, and optimization and metallurgical
studies at the 217 Gold Project are subject to various risks and
uncertainties concerning the specific factors disclosed under the
heading "Risk Factors" and elsewhere in the company's periodic filings
with Canadian securities regulators. Such information contained herein
represents management's best judgment as of the date hereof based on
information currently available. The company does not assume the
obligation to update any forward-looking statement.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Jinshan Gold Mines Inc. - Investors
    Bill Trenaman
    (604) 609-0598
    or
    Jinshan Gold Mines Inc. - Media
    Bob Williamson
    (604) 609-0598
    info@jinshanmines.com
    www.jinshanmines.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.