Jinfeng is Sino Gold's flagship project and is considered to be the largest known Carlin-type deposit in China. Once developed, Jinfeng will be the second largest gold mine in China with planned initial gold production of approximately 180,000 ounces per annum. Sino Gold is determined to increase gold production to optimal levels as quickly as possible.

Construction started in February 2005 and gold production commenced in May 2007.

Jinfeng is located in Guizhou Province, 236km southwest of the provincial capital Guiyang. Sino Gold holds 82% equity in the Sino-Foreign joint venture with a Chinese partner.

The area consists of rugged karst topography with relief up to 420m and shallow surface drainage. The climate is sub-tropical and humid with an average annual rainfall of 1,200mm which falls primarily from May to August. The yearly average temperature is 19°C with it ranging between 6°C and 30°C.

It is also expected that the mine will create approximately 700 jobs during operations, with this number increasing to around 1,100 during the construction period. Sino Gold Limited's senior management are enthusiastic about developing an SME linkage project and maximizing a positive mine impact on the socio-economic environment in association with the IFC. The IFC SME Department has responded to Sino-Gold's commitment by: (1) identifying an SME linkage specialist from the IFC-PENSA program in Indonesia to assist in designing a Supply Chain Linkage program for the Jinfeng area; and (2) based on Linkage Design, assist with Technical Assistance for implementation. The Technical Assistance (TA) will consist of an SME Linkage Specialist, an Agriculture Specialist, and business and technical skills training and mentoring.

Sino Gold is also working towards its "Social License" and to help support the local community. Before the construction of the mine, Sino Gold consulted and communicated with each of the relevant stakeholders on the issue of benefit distribution. The results for example have been supporting 55 children who have financial difficulties with their education. Sino Gold also solved the problem of drinking water for residents who had to fetch water from rivers by providing wells.

All these, of course, are the simple examples which explain "Social License" and a mining company's commitment to the community.

For more information on Sino Gold Limited please visit: http://www.sinogold.com.au/