Golden China's Beyinhar Project Scoping Study Indicates Production Costs of US$280/oz - Company Commences Feasibility Study



    TORONTO, April 12 /CNW Telbec/ - Golden China Resources Corporation
(GCX: TSX; ASX) today announced results of a preliminary assessment (scoping
study) on the oxide resource at its Beyinhar gold project located in the
Chinese province of Inner Mongolia. As a result of the positive outcome of the
study, which indicates gold production costs of between $US260/oz and
$US280/oz, the company has initiated a Feasibility Study (FS), which is
expected to be completed by the end of 2007.
    "We are extremely encouraged by the results of the scoping study,
particularly with the fact that Beyinhar has the potential to produce gold at
a cash cost of US$280 per ounce or less, which is consistent with other mines
in the area." said Greg Starr, President and Chief Executive Officer of Golden
China. "We look forward to the continuing development of the Beyinhar Mine
with the completion of the Feasibility Study later this year. Golden China is
targeting to develop its mining production to 100,000 ounces per annum by 2009
through Beyinhar alone, which alongside anticipated results from our other
projects, will cement the company's foothold as one of the major gold
producers in China."
    The Scoping Study evaluated 9 potential mining and processing scenarios
comprising various permutations on Dump Leaching, Heap Leaching and CIL, with
an estimated accuracy of +/-30%. The outcome of the Study has indicated Heap
Leaching as the best process and proposes two stages of project development.
The first stage, is based on Beyinhar's current resource, envisages a
production rate of 2.5 million tonnes per annum (tpa), subsequently building
to a production rate of 5 million tpa, with gold production of 100,000 ounces
per annum once the Beyinhar resource increases in size.

    
    The results of the study are as follows:
    -------------------------------------------------------------------------
                                                      Initial        Stage 2
                                                  Development    Development
    -------------------------------------------------------------------------
    Mine production (tpa)                           2,500,000      5,000,000
    Stripping ratio                                     1.3:1          1.3:1
    Gold recovery (%)                                      80             80
    Annualised gold production (ozs)     (greater than)50,000        100,000
    Estimated cash costs ($US/oz)                   270 - 280      260 - 270
    -------------------------------------------------------------------------
    Estimated capital cost (M $US)                         22             29
    -------------------------------------------------------------------------

    In light of the favourable results of the study, which indicate that the
Beyinhar gold project could be developed as an open cut and heap leach
operation, Golden China has begun the metallurgical and engineering components
of a NI 43-101 compliant study on the oxide resource at Beyinhar. The proposed
timetable for the study is as follows:

    - Metallurgical testwork - Ongoing - SGS Lakefield Oretest Pty Ltd
    - Updated 43-101 Resource - September 2007 - GeoSystems International,
      Inc
    - Mine Design - October 2007 - Orelogy Pty Ltd
    - Engineering Study - November 2007 - Kappes Cassiday Associates,
      Australia Pty Ltd
    - Feasibility Study completion - December 2007
    - EIS - March 2008 - Australasian Pacific Environmental Consultants Pty
      Ltd

    Subject to the completion of the Feasibility Study in December 2007, final
engineering design and project approvals would then commence and proceed in
tandem. Current scheduling indicates construction commencing in April 2008,
with commissioning by the end of 2008.

    Scoping Study

    The metallurgical testwork for the Scoping Study was carried out by SGS
Lakefield Oretest, (SGS) in Perth, on a 160kg composite drill core sample from
the oxide zone at Beyinhar. The initial column leach testwork was carried out
on a 12.5 mm crushed composite oxide ore sample from Beyinhar. This testwork
achieved gold recoveries of between 82% and 85% over a 45 day period as
indicated below:

    http://files.newswire.ca/357/Scoping_Study.doc

    The inputs for the capital and operating costs for the process options of
Dump Leach, Heap Leach and CIL was provided by KCAA in Perth. KCAA is the
Australian subsidiary of Kappes Cassiday and Associates, of Reno, Nevada, one
of the foremost gold heap leach specialists in the world. The mine operating
costs and pit optimisations were provided by Orelogy Pty Ltd, a mine design
and consulting group based in Perth. The mining operating costs were based on
a contract mining scenario.
    A complete version of the NI 43-101 compliant scoping study will be
available on Golden China's website (www.goldenchina.ca) as well as on SEDAR
(www.sedar.com) in coming weeks.

    2007 Drilling Programme Commences

    At the current time, the resource at Beyinhar comprises an initial mineral
resource within the largely oxide, near-surface zone of a measured and
indicated resources of 475,000 contained ounces and an inferred resource of
130,000 ounces, at a 0.30g/t Au cut-off:

    -------------------------------------------------------------------------
            Measured     Indicated   Measured+Indicated       Inferred
    -------------------------------------------------------------------------
    Cut-    M     Au      M     Au     M     Au     000,    M    Au      000,
    off  Tons  Grade   Tons  Grade  Tons  Grade  Ounces  Tons  Grade  Ounces
    (g/t)       (g/t)         (g/t)        (g/t)     Au        (g/t)      Au
    -------------------------------------------------------------------------
    0.3   4.7   1.00   12.8   0.78  17.6   0.84     475   7.5   0.54     130
    -------------------------------------------------------------------------
    

    The 2007 drilling programme commenced on 22nd March 2007 and is scheduled
to complete over 17,000 metres within the defined Beyinhar Central Zone, as
well as an extended programme on the new Beyinhar South West exploration
license. Additional deeper holes, between 120 metres and 150 metres deep, will
be drilled to increase the resource within the recently discovered sulphide
zone below the oxide resource.
    An updated NI-43-101 mineral resource estimate is scheduled for
completion in September 2007. This work will be carried out by Mario Rossi of
GeoSystems International.
    The objective of the 2007 drilling programme is to increase the Beyinhar
resource from the current resource level (as indicated in the table above) to
a target of over one million ounces in the Measured and Indicated categories
by September 2007. An updated NI 43-101 compliant mineral resource estimate is
scheduled for completion in September 2007. This work will be carried out by
Mario Rossi of GeoSystems International.
    Core from the new drilling programme, in combination with a bulk sample
from the existing open-cut mine on the site, will be used to provide a bulk
metallurgical sample for the DFS. This sample will be sent to Perth for
metallurgical testwork with SGS. KCAA will then carry out the engineering and
infrastructure aspects of the FS. Orelogy will utilize the updated September
2007 resource model to carry out the mine design and scheduling.

    On-going Metallurgical Testwork on Sulphide ores

    As announced in Golden China's press release of February 1, 2007, the
company also encountered high-grade sulphide mineralization below the
project's near-surface oxide gold deposit. Metallurgical samples from this
deeper sulphide zone will be tested over the course of the next few months to
determine its suitability for heap leach processing. These results should be
available by July 2007.

    About Beyinhar

    Golden China's 95% owned Beyinhar gold project lies within the Inner
Mongolia Fold Belt Region, a productive orogenic belt hosting several skarn,
shear-hosted, orogenic/mesothermal veins and porphyry Cu-Au deposits. This
Fold Belt region hosts the world-class Oyu Tolgoi copper-gold deposit
(1.15 billion tonnes @ 1.27 % Cu and 0.48 g/t gold), and CSH 217 shear-hosted
gold deposit (83 million tonnes @ 0.82 g/t gold). Inner Mongolia is a province
of the People's Republic of China, not Mongolia.
    The Beyinhar project is well supplied by existing infrastructure and
services. The site is located 365km from Hohhot, the Provincial capital and
has a bitumen road passing within 1km of the deposit. A new 110KVa power line
has recently been constructed within 7km of the site and a potential water
source lies some 30km to the NW. The town of Sonid Youqi, comprising some
16,000 persons, is located only 50km to the south west. The large city and
airport at Xilinhot is only a 2 hour drive to the north east.
    The Beyinhar gold property covers an exploration license of approximately
49.45 km2, with a 1.5 km2 mining lease inside this exploration permit.

    http://files.newswire.ca/357/Beyinhar.doc

    Qualified Person

    Mr. Peter Secker, BSc (Hons) Mining Engineering, MAusIMM, is Golden
China's Vice President of Exploration and Development and its qualified person
as defined by National Instrument 43-101. Mr. Secker is overseeing the
company's exploration work at Beyinhar and supervised the preparation of the
information in this release.

    About Golden China Resources Corporation:

    Golden China Resources Corporation is a significant participant and
consolidator in the Chinese precious metal industry and one of the largest
producers of gold in China. The company is using its extensive knowledge of
the Chinese marketplace and best practices based on established international
standards in building a diversified gold business focused on exploration and
development, operations, and corporate development in the Chinese precious
metal industry. Golden China's shares are listed on the main boards of both
the Toronto and Australian Stock Exchanges under the symbol GCX.

    Forward-Looking Statements: Statements in this release that are
forward-looking statements 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
regulatory authorities The forward looking statements in this release and
documents referred to herin relate to future events or the Corporation's
future performance and reflect expectations and assumptions regarding the
growth, results of operations, performance, prospects and opportunities of the
Corporation. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results or
performance of the Corporation to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements, including but not limited to: uncertainties and
costs relating to exploration and development activities; uncertainties
related to feasibility and other studies that provide estimates or expected or
anticipated economic returns from a mining project; uncertainties related to
the accuracy of mineral reserve and mineral resource estimates; changes in,
and the effects of, the laws, regulations and government policies affecting
mining operations; general business, economic, competitive, political and
social uncertainties; future prices of gold; fluctuations in currency exchange
rates (principally US$ and the Chinese Renminbi/Yuan); labour difficulties,
environmental hazards, industrial accidents or other events or occurrences
that interrupt project schedules. Although the Corporation has attempted to
identify important factors that could cause actual results, performance or
achievements to differ materially from those described in forward-looking
statements, there may be other factors that cause results, performance or
achievements not to be as anticipated, estimated or intended. There can be no
assurance that actual events, performance or results will be consistent with
these forward-looking statements and accordingly readers should not place
undue reliance on forward-looking statements. The Corporation assumes no
obligation to update or revise forward-looking statements to reflect new
events or circumstances, except as required by law. 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 HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE
    ADEQUACY OR ACCURACY OF THE RELEASE.
    %SEDAR: 00009239E




For further information:

For further information: Golden China Resources Corp.: Kristen (Boucher)
Humphrey, Communications Manager, (416) 366-8818 ext. 230,
khumphrey@goldenchina.ca, www.goldenchina.ca; Renmark Financial Communications
Inc.: Barbara Komorowski, bkomorowski@renmarkfinancial.com; Neil Murray-Lyon,
nmurraylyon@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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GOLDEN CHINA RESOURCES CORPORATION

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