Jinshan Gold Mines Inc.
TSX VENTURE : JIN

Jinshan Gold Mines Inc.

August 03, 2005 08:30 ET

Jinshan Gold Mines Pours First Gold Bars from Pilot Mining Operations at CSH (217) Gold Project, Inner Mongolia, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 3, 2005) - Jinshan Gold Mines Inc. (TSX VENTURE:JIN) announced today that it has poured the first three gold bars, totalling approximately 580 ounces and valued at approximately US$250,000, from pilot mining operations at its CSH (217) Gold Project in Inner Mongolia, China.

Heap leaching on run-of-mine ore and primary crushed ore will continue through to October, 2005. Pilot mining and heap leaching are being conducted to test the bulk-mining characteristics of the deposit, to provide better insight into Chinese operating and capital costs and to test metallurgical recoveries. Detailed engineering and feasibility studies currently underway have been designed to facilitate an early decision to move to commercial production. The CSH (217) Gold Project is envisioned as an open-pit, heap-leach mine that could produce approximately 100,000 ounces of gold per year.

"We have taken an important step toward becoming a major gold producer in China," said Jinshan's President Jay Chmelauskas. "With these pours we have produced our first gold bars ahead of the mid-August target. Initial leach-pad performance is better than expected, exhibiting good permeability and requiring only minor de-scaling. Our objective is to progress to commercial production over the next year, building on the construction and gold-production successes we have achieved with the pilot project."

As previously reported in Jinshan's April 19, 2005 news release and April 20, 2005 material change report, measured and indicated resources at CSH (217) are 82.7 million tonnes grading 0.82 g/t gold, containing 2.2 million ounces of gold. Inferred resources are 36.5 million tonnes grading 0.89 g/t gold, containing an additional 1.0 million ounces of gold. The resource estimate was calculated, using a 0.5 g/t gold cut-off, by Mario E. Rossi, MSc., Min. Eng., of GeoSystems International Inc., Florida, USA, a qualified person as defined by National Instrument 43-101.

Jinshan and Ivanhoe Mines (TSX:IVN)(NYSE:IVN) are jointly developing the CSH (217) Project on a 50/50 basis.

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

About Jinshan

Jinshan is a Canadian mining company focused on the exploration and development of gold and copper projects in Asia. The company is advancing one of the largest gold development projects in China - the CSH (217) Gold Project - and conducting exploration work on prospective properties in Xinjiang, Yunnan, Gansu and Guizhou provinces in China.

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 planned development of the CSH (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.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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