Initial Beyinhar Ore Reserve of 0.5 million ounces

    TORONTO, March 5 /CNW/ -


    -   The initial Beyinhar Ore Reserve is estimated to be 21.4 million
        tonnes at 0.72 g/t gold, containing 0.5 million ounces.

    -   The Beyinhar Measured and Indicated Resource has increased 8% to
        29.0 million tonnes at 0.63 g/t gold, containing 0.6 million ounces.

    -   Deposit remains open along strike and at depth with drilling in 2008
        aimed at extending both the oxide and sulphide resource potential.

    -   Beyinhar is being progressed towards a mine development decision in
        late 2008.

    Sino Gold Chief Executive Officer, Jake Klein, commented:

        "Beyinhar is likely to become Sino Gold's third mine and is shaping
        up as a simple heap-leach, open-pit mining operation.

        "Further studies and permitting are progressing towards enabling
        construction of Beyinhar to commence towards the end of 2008.

        "A substantial drilling program is planned for 2008 to both extend
        the oxide mineralisation and also to test the potential of the
        deeper, higher grade sulphide mineralisation."

    Mineral Resource Estimate

    The Beyinhar Project in Inner Mongolia was acquired by Sino Gold as part
of the take-over of Golden China Resources Corporation ("Golden China"). The
data used in this new resource estimate is based on results from Golden
China's work program to 30 November 2007.
    The previous resource estimate for Beyinhar was based on drilling to
November 2006 and was released by Golden China in January 2007, as detailed in
the "Technical Report and Resource Estimate for the Beyinhar Gold Deposit"
dated 9 January 2007.
    During 2007, an additional 148 diamond drill holes (totaling 20,937m)
were completed.
    The updated Measured and Indicated Resource estimate of 29.0 million
tonnes at 0.63 g/t gold, containing 0.6 million ounces, is contained entirely
in the oxide zone.
    A sulphide zone underlying the oxide resource is estimated to contain an
Inferred Resource of 17.3 million tonnes at 0.65g/t gold, containing
0.36 million ounces. The potential of the sulphide mineralisation, which was a
key driver behind the Golden China acquisition, includes high-grade epithermal
quartz veins which will be the focus of future exploration.

                         January                              March
    Mineral                2007                                2008
    Resource   Million    Grade   Ounces   Change  Million    Grade   Ounces
    Category    Tonnes  (g/t Au)   ('000)     (%)   Tonnes  (g/t Au)   ('000)
    Measured       6.4     0.80      164      -79      1.0     1.06       35
    Indicated     19.7     0.60      380       45     28.0     0.61      552
    Subtotal M+I  26.1     0.65      544        8     29.0     0.63      587
    Inferred      16.0     0.38      196      -65      4.6     0.47       69
    Inferred                                  100     17.3     0.65      360
         Note: Cut-off grade of 0.20g/t gold used for both estimates.
               Mineral Resources are inclusive of Ore Reserves.

    A cut-off grade of 0.20g/t gold was used for the resources reported above.
The tonnes and grade of the Measured and Indicated Resources at varying
cut-off grades is detailed in the graph and table at the URL below.


    The updated resource estimate is primarily based on:

    -   Data from 292 diamond drillholes, totalling 42,000m, all drilled by
        Golden China;

    -   Drill spacings of generally 50m along strike and 50m down dip with
        limited areas of closer drill spacings; and

    -   Multiple Indicator Kriging geostatistical resource estimation

    Ore Reserve Estimate

    The initial Beyinhar Ore Reserve estimate as tabulated below totals
21.4 million tonnes at 0.72g/t gold, containing 0.5 million ounces.

    Ore Reserve                                    Million    Grade   Ounces
    Category                                        Tonnes  (g/t Au)   ('000)
    Proved                                             1.0     1.07       35
    Probable                                          20.4     0.71      464
    Total                                             21.4     0.72      499
         Note: Cut-off grade of 0.22g/t to 0.25g/t gold used for this

    Sino Gold is targeting to commence construction of a heap-leach, open-pit
operation at Beyinhar during 2008.
    Permitting has been progressed by Golden China on the basis of a 2.5Mtpa
heap-leach "starter" operation at Beyinhar. The Chinese Feasibility Study to
commence permitting this scale operation has been completed. Providing
satisfactory results at the completion of further studies, the intent is to
commence construction in the second half of 2008.
    Metallurgical testwork undertaken by Kappes, Cassidy and Associates has
estimated heap-leach gold recoveries of approximately 90% for near-surface,
soft oxide ore and approximately 80% for deeper oxide ore. Very little
testwork has been undertaken on mineralisation in fresh rock which is unlikely
to be amenable to heap leaching. No mineralisation in fresh rock has been
included in the reserve estimate.
    Key parameters for this Ore Reserve estimate are:

    - Gold price of US$650 per ounce; and

    - Current estimates of operating costs.

    Based on the above, a cut-off grade of 0.22g/t gold was estimated for the
soft oxide ore and 0.25g/t gold for the remaining oxide ore.
    The waste to ore strip ratio for the above Ore Reserve is estimated to be
2.0 to 1.0.
    The reserve and resource estimate methodology, including a summary of
relevant assessment and reporting criteria is available in the Reserves and
Resources section of

    Geological Setting

    Gold mineralisation at Beyinhar is:

    -   hosted in the Beyinhar Shear Zone in Proterozoic metasediments and
        Cretaceous rhyolite;

    -   controlled by the interplay of primary metamorphic fabric, the
        massive rhyolite and granodiorite abutting the metasediments and the
        Beyinhar Shear Zone, faulting along the Beyinhar shear and oxidation
        controlled by meteoric waters;

    -   known to extend over a strike length of approximately 2.2km and to a
        maximum depth of 200m.

    The bulk of the deposit occurs in a well-developed oxide zone, which
extends in some areas down to 125m vertical depth. Only limited drilling has
intersected the sulphide mineralisation identified below the oxide resource.
High-grade gold mineralisation occurs in epithermal quartz veins, apparently
related to the sub-volcanic rhyolite intrusion.
    Silver is known to be associated with gold mineralisation at Beyinhar but
samples have not been routinely analyzed for silver.
    Gold mineralisation at Beyinhar remains open along strike in both
directions (northeast and southwest) and at depth.

    Beyinhar Outlook

    The aim of the planned 2008 exploration program is to extend and upgrade
both the oxide and sulphide resources. This program is planned to commence in
late March 2008 and primarily comprise soil geochemistry, ground electrical
geophysics (Induced Polarisation) and drilling.
    Drilling will test for extensions to the oxide resource, which remains
open along the southwest-northeast striking Beyinhar Shear Zone.
    Sulphide mineralisation below the oxide zone has been tested by very
limited drilling to date. An extensive diamond drilling program will be aimed
at defining high-grade gold mineralisation in the sulphide zone.
    Studies and permitting are being progressed in order to enable the Sino
Gold Board to approve development of a 2.5Mtpa heap-leach operation in the
second half of 2008.

    Competent Persons

    These Mineral Resources and Ore Reserves are presented in accordance with
the 2004 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves ("JORC Code"), which is equivalent
under the corresponding categories of mineral reserves and mineral resources
to Canada's National Instrument 43-101 - Standards for Disclosure for Mineral
Projects ("NI43-101") and CIM Standards.
    The information relating to the Mineral Resources estimate was compiled
by geologists employed by Golden China, including, Mr Alfonso Latorre
(MAusIMM) and Mr Tom Zhu. Sino Gold employees Mr Phillip Uttley (FAusIMM) and
Dr Stuart Munroe (MAusIMM) assisted in the re-categorisation of the Mineral
    The information herein relating to the Mineral Resources estimate is
provided by Mr Mario Rossi (FAusIMM), who takes responsibility for its
content. Mr Rossi is an independent consultant geostatistician and mining
engineer from the international consulting firm Geo Systems International. He
has over 19 years relevant experience in exploration and evaluation of various
styles of gold deposits.
    The information herein relating to the Ore Reserves estimate is provided
by Mr Steve Craig (MAusIMM), who takes responsibility for its content. Mr
Craig is an independent consultant with Orelogy and has over 20 years relevant
experience in evaluation of gold deposits.
    Mr Rossi and Mr Craig are both Competent Persons as defined in the JORC
Code and "qualified persons" under NI43-101. They consent to the inclusion in
this report of the information in the form and context in which it appears.

    About Beyinhar

    The Beyinhar Project is located approximately 500km northwest of Beijing
in the Inner Mongolia Autonomous Region, People's Republic of China.
    Beyinhar is approximately 3km from a regional highway and close to grid
power. The gently rolling grasslands of the project area receive very little
rainfall with fairly hot summers and cold, windy winters.
    The 15km2 Beyinhar Joint Venture area is 95% owned by Sino Gold and an
adjacent 33km2 Exploration Licence to the southwest is 100% owned by Sino
    Golden China commenced exploration work at Beyinhar in late 2003 and
carried out geological mapping, rock sampling, soil geochemical surveys,
geophysical surveys and drilling.
    Sino Gold aims to commence development of a heap-leach, open-pit mining
operation at Beyinhar in the second half of 2008.

    Cautionary Statement on Forward Looking Information

    Certain statements contained in this news release constitute
forward-looking information within the meaning of securities laws. The words
"expect", "will", "intend", "estimate" and similar expressions identify
forward-looking statements. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered reasonable
by management of Sino Gold are inherently subject to significant business,
economic and competitive uncertainties and contingencies. Sino Gold cautions
the reader that such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual financial
results, performance or achievements of Sino Gold to be materially different
from their respective estimated future results, performance or achievements
expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future performance. These
risks, uncertainties and other factors include, but are not limited to:
changes in the worldwide price of gold or certain other commodities (such as
fuel and electricity) and other currencies; changes in U.S. dollar interest
rates or gold lease rates; risks arising from holding derivative instruments;
legislative, political or economic developments in the jurisdictions in which
Sino Gold carries on business; operating or technical difficulties in
connection with mining or development activities; employee relations;
availability and increasing costs associated with mining inputs and labour;
the speculative nature of exploration and development, including the risks of
diminishing quantities or grades of reserves, adverse changes in our credit
rating, contests over title to properties, particularly title to undeveloped
properties; and the risks involved in the exploration, development and mining
business. These factors are discussed in greater detail in statutory releases
filed with the applicable securities regulatory authorities.

For further information:

For further information: regarding Sino Gold please contact: Investor
Enquiries: Jake Klein, CEO or Roger Howe, Investor Relations, +61 2 8259 7000,; Media Enquiries: Kate Kerrison, +61 2 6746 3221,

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