Jinshan Gold Mines Inc.
TSX : JIN

Jinshan Gold Mines Inc.

December 20, 2007 08:13 ET

Jinshan Reports Phase II Drilling and Underground Channel Sampling Results at Dadiangou Gold Project in China

Dadiangou Resource Estimate Expected in Early 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2007) - Jinshan Gold Mines Inc. (TSX:JIN) is pleased to announce final results from its Phase II diamond drilling program at the Dadiangou Gold Project in Gansu Province, central China. Drilling along strike from previous work has extended the mineralized length of the Dadiangou Main Zone (DMZ) to more than three kilometres. Infill drilling and underground sampling in the central portions of the DMZ have returned gold grades and widths consistent with the Phase I results and will provide the data density needed to proceed with the resource estimate. Hole 31, drilled along the eastern extension to the Dadiangou South Zone (DSZ) has returned the best drill intercept to date at Dadiangou with 9.0 metres (7.0m true width) at 6.76 grams per tonne gold.

"Phase II drilling was successful in meeting our expectations and targets," said Jinshan's Vice President of Exploration, Keith Patterson. "We hit our highest grades yet in hole 31 and intersected strong alteration and gold grades in hole 39, the most westerly hole drilled to date. This leaves the Dadiangou shear zone open to the west and provides an obvious target for future exploration efforts."

Jinshan will now use the results of the 51 diamond drill holes completed this year and channel sampling of 37 underground cross-cuts to produce a National Instrument 43-101 compliant resource estimate. The resource estimate is expected to be released early in 2008. Full results of all Phase I and Phase II drilling and a collar location map are available on Jinshan's website, www.jinshanmines.com. During Phase II drilling, 29 diamond drill holes were completed for a total of 6,663 metres. Jinshan has now completed 11,865 metres in 51 drill holes at Dadiangou since drilling began in February of this year.



Highlights of Phase II drilling include:
----------------------------------------------------------------------
True
From To Intercept Width(1) Gold(2)
Drillhole Area (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------
Hole 31 DSZ - east 129.0 138.0 9.0 7.0 6.76
----------------------------------------------------------------------
Hole 33 XMZ 212.5 230.3 17.8 16.0 0.84
----------------------------------------------------------------------
Hole 39 DMZ - west 106.0 126.0 20.0 17.3 0.73
----------------------------------------------------------------------
Hole 41 DMZ - central 100.0 115.0 15.0 11.5 0.87
----------------------------------------------------------------------
Hole 44 DMZ - central 201.0 226.0 25.0 18.9 1.54
----------------------------------------------------------------------
Hole 45 DMZ - central 201.0 211.5 10.5 7.8 2.30
----------------------------------------------------------------------
Hole 46 DMZ - central 136.9 161.0 24.1 16.1 0.78
----------------------------------------------------------------------

Notes:
1. True widths are determined from the apparent orientation of the shear
zone on each section and the angle at which each drill hole intersects
the shear zone. All drill holes completed to date have been oriented
approximately perpendicular to the shear zone in plan view.
2. All grades reported are "length weighted averages" (LWA) of one or more
individual samples.
3. DSZ - Dadiangou South Zone; XMZ - Dadiangou Far South Zone;
DMZ - Dadiangou Main Zone; DNZ - Dadiangou North Zone


In addition to the drilling, Jinshan has completed an underground sampling program of all accessible cross-cuts within the central portions of the Dadiangou Main Zone. In total, 37 crosscuts were sampled with continuous, high-quality, saw-cut channel samples which measure approximately 10 x 15 centimetres in cross-section and are generally one metre in length. These samples were logged and analyzed using the same handling and quality-assurance/quality-control protocols as the drill core. In general, the results from this sampling are consistently, and in some cases significantly, higher than the results from nearby drill intercepts. Jinshan geologists interpret that this discrepancy can be attributed to the larger volume of material sampled by the underground channel samples and speculate that these larger samples may be more representative of the bulk grades within the Dadiangou Main Zone. Full results of all underground sampling and a map showing the locations of the sampled cross-cuts are available on Jinshan's website, www.jinshanmines.com.



Highlights of the underground channel sampling include:
-------------------------------------------------------
From To Intercept(1) Gold(2)
Crosscut (m) (m) (m) (g/t)
-------------------------------------------------------
PD7-2S 2.70 18.00 15.30 1.94
-------------------------------------------------------
PD7-6N 4.00 13.00 9.00 1.66
-------------------------------------------------------
PD8-3N 3.75 15.42 11.67 3.31
-------------------------------------------------------
PD8-4N 1.20 14.00 12.80 1.85
-------------------------------------------------------
PD8-7N 8.00 18.00 10.00 1.86
-------------------------------------------------------
PD13-6S 6.70 16.85 10.15 6.34
-------------------------------------------------------

Notes:
1. As the mineralization is generally approximately vertical and the
sampled cross-cuts are horizontal, the listed intercepts approximate
true widths across the mineralized zone.
2. All grades reported are "length weighted averages" (LWA) of one or more
individual samples.


Four drill holes were completed at the Dadiangou North Zone (DNZ) and intersected sporadic grades of up to 1.5 metres at 1.29 grams per tonne gold. The DNZ is located approximately one kilometre north of the Dadiangou Main Zone.

The Dadiangou gold system is located in the central part of China in southern Gansu Province within the prolific Qinling Fold Belt. The license covers approximately 15 square kilometres and is owned by the Northwest Industrial Nuclear Economic Technical Corp. (part of the Shaanxi Nuclear Geology Bureau of China). The joint-venture agreement with the Northwest Industrial Nuclear Economic Technical Company (the Chinese partner) allows Jinshan to earn a minimum of 80% on the property, with the Chinese partner having the option to participate at 20%, or to become diluted.

Quality Assurance and Quality Control Program

Industry standard core handling, sample chain of custody, and laboratory quality assurance/quality control (QAQC) procedures have been developed and followed during all work at the Dadiangou project. Individual core boxes are transported from the drill site to a secure core logging facility by Jinshan personnel. At the core shack, core is logged for geological and geotechnical purposes, then photographed prior to being cut by diamond saw for sampling. Blank, duplicate, and standard samples are inserted into the sample stream, each comprising 5% of the total samples bringing the frequency of QAQC samples to 20% of the total samples submitted. A strict chain of custody protocol is enforced at all times during sample transport from the project to SGS-CSTC Laboratories in Tianjin, China (ISO 9001-2000 accredited). Once results are received, they are compiled with the drill hole data then reviewed and approved by both Qualified Persons.

Qualified Persons

Howard Davies, M.Sc., M.A.I.G., a Jinshan employee, and Keith Patterson, M.Sc., P.Geo., Jinshan's Vice President of Exploration, are the designated Qualified Persons for the Dadiangou project as defined by National Instrument 43-101. Both Mr. Davies and Mr. Patterson have supervised the work onsite and have reviewed the results reported in this release.

About Jinshan

Jinshan is a Canadian mining company focused on the start of commercial production at the CSH gold mine in China. In addition, the company is actively exploring its portfolio of gold exploration properties and continues to evaluate additional gold opportunities in China.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the ongoing exploration programs at Dadiangou and the planned resource estimate are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's MD&A, financial statements and other 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. When used in this document, words such as "could", "planning", "estimate", "expect", "intend", "may", "potential", "should", and other similar expressions are forward looking statements. The company does not assume the obligation to update any forward-looking statement.

Contact Information