Additional Exploration License Granted at Golden China's Beyinhar Gold Project
New Beyinhar Joint Venture Business License Registered
Toronto, Ontario, May 17, 2007 - Golden China Resources Corporation (GCX: TSX; ASX) today announced that it has secured a strategic, second exploration license at its Beyinhar gold project, significantly increasing the potential of the company's resource base to the south west of the established mineralization. As well, the company's new 95% owned cooperative joint venture company for the Beyinhar project has been granted its required business license under Chinese law.
"Beyinhar is shaping up to be a significant asset for Golden China. We are very encouraged by the project's recent progress, including our continued success in negotiating the complex Chinese mining industry approvals process as evidenced by our new south west exploration permit and joint venture business license registration. We are also excited by the positive results of a NI 43-101 Scoping Study, filed with the appropriate regulatory bodies today, indicating a cash cost per production ounce that is well below industry average," said Greg Starr, President and Chief Executive Officer of Golden China. "Beyinhar's future prospects are also excellent. As a result of the second exploration license, we aim to more than double the project's measured and indicated resources by October of this year. This will be followed by a feasibility study, expected for the end of calendar 2007, which could potentially see the project in development by Ap
ril 2008."
Golden China's second exploration license at Beyinhar (see Figure A) is adjacent to its existing permit within which the company also holds a mining lease. The additional exploration rights were secured in order to officially establish continuity of the mineralized trend defined by Golden China's 2006 resource delineation programme, which includes a prospective high grade sulphide feeder zone in addition to the surface oxide deposit.
The additional exploration permit is expected to enable Golden China to significantly increase the project's resource base as early as this October when the company is targeting to release its second NI-43-101 compliant mineral resource statement on Beyinhar following the completion of its planned 17,000 metre 2007 drilling programme. The objective of this exploration work, which only recently resumed after the winter break, is to increase measured and indicated resources from a current 475,000 ounces to over one million ounces. As well, the new exploration license carries the potential to considerably enhance Golden China's longer term drilling prospects at Beyinhar.
The exploration and mining rights will be held by a co-operative joint venture (CJV) company, in which Golden China has a 95% interest. Nei Menggu Golden China Minerals is now a registered company following the recent approval of its business license by the provincial government of Inner Mongolia, China. The receipt of the business license for the CJV arrangement further strengthens Golden China's already strong relationship with its joint venture partners at Beyinhar, Neigmenggu Non-Ferrous Geology and Minerals Co., Ltd.
Golden China recently announced very positive results associated with a Scoping Study on the oxide resource at Beyinhar, which suggest a cash cost production ounce of between US$260 and US$280 - below industry average as illustrated by Figures B and C below. The full study is now available on the company's website (www.goldenchina.ca) as well as on SEDAR (www.SEDAR.com) and the Australian Stock Exchange (www.ASX.xom).
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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 exploration rights of approximately 49.45 km2, with a 1.5 km2 mining lease inside this area.
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.
For further information please contact:
Golden China Resources Corp.
Kristen Humphrey
Communications Manager
Tel: 416.366.8818 ext. 230
khumphrey@goldenchina.ca
www.goldenchina.ca
or
Renmark Financial Communications Inc.
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Neil Murray-Lyon : nmurraylyon@renmarkfinancial.com
Tel.: 514.939.3989
Fax: 514.939.3717
www.renmarkfinancial.com
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 herein 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 forwardlooking statements, including but not limited to: uncert
ainties 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, performan
ce 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.
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