Jinshan Gold Mines - Rational Investing

Jinshan Gold Mines
金山矿业有限公司
Corporate Presentation
June 2008
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Forward Looking Statements
This presentation includes certain “forward-looking statements.” All
statements, other than statements of historical fact, are forward-looking
statements that involve various risks and uncertainties. There can be no
assurances that such statements will prove accurate and actual results
and future events could differ materially from those anticipated in such
statements.
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 qualified persons reviewing
the technical information for the CSH 217 Project are Joe Keanne,
President of KD Engineering and Mario E. Rossi, of Geosystems
International Inc., and John Nilsson, of Vancouver, Canada. The qualified
person reviewing the technical information for the Dadiangou project is
Keith Patterson, M.Sc., P.Geo., Jinshan’s Vice President of Exploration.
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China’s expanding gold industry
 Industry in transition from small scale 1,250+ mines,
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unconsolidated, undercapitalized and inefficient.
Ranked # 1 largest gold producer in 2007, as S Africa, N
America and Australian production all decline dramatically.
Geopolitically stable, mining friendly, highly prospective
geology
Significant cost advantages, supplies, technical staff
Transformation on all fronts; Ownership, Funding, Scale,
Freeing up of state owned assets etc.
Expanding domestic consumption of gold
JIN and other established foreign companies well placed to
benefit
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CSH 217 Mine – China’s newest gold mine
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Mining to International Standards
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Satellite Image of CSH 217
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Gold Production
CSH Gold Mine
First steps on a long journey……..
• 96.5% ownership
• First gold pour July 2007
• Forecast annual production
120,000 oz pa
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Resource Base
CSH Gold Mine
• Resource Base M & I - 3.92 M oz
• Resources Inferred – 1.33 M oz
• Potential 9 KM strike length
extension
• Low discovery cost < US$3 per oz
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Production Upside
CSH Gold Mine
• Currently mining at 20,000 tpd
• Feasibility Study in progress to
increase to 30,000 tpd.
• Production increase target +160,000oz
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Potential to increase Gold Production
 Current rate of approx120,000 oz/year from NE zone only
 Expansion study to target 160,000+ oz/year to include SW
zone
 Exploration drilling expanded deposit to west and at depth
Exploration
Potential
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SW Zone
NE Zone
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CSH 217 – Brownfields Exploration
Surface Trace of host Strata
• Recently completed grid rock sampling
program
• 9 km strike length with potential for additional
mineralization
• Anomalies to be followed up with trenching
and drilling
NE Zone
• Deep Drilling
• Expand resources
100-150 metres deeper
SW Zone
• Drilling along strike to SW
• Conversion of Inferred
Resources to M&I
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Dadiangou Project, Gansu Province
Drilling new opportunities
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Jinshan’s Exploration Efforts
Heilongjiang
Altay
CSH 217
Gold Mine
Northern China
NW China
Grassroots
Projects
Tianshan
Dadiangou
Advanced Exploration
Qinling
Gold Deposit > 2M ozs
Gold Deposit > 100k ozs
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Dadiangou - “Drill and Develop” Project
 Work started February 2, 2007
 51 diamond drill holes, 11,865 m in two phases
 First resource January 31, 2008 26 Mt @ 0.919 gpt =
777,600 ozs
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China National Gold Corporation
 42% shareholder in Jinshan, four board seats
 China’s largest gold miner (20% of China’s production)
 30% of known gold reserves
 65 Operating Mines in China
 Large exploration portfolio
 Large media enterprise
 Council member – Shanghai gold exchange
 Chairman – China Gold Association
 Member of World Gold Council
 Only Chinese gold company authorized to sell forward on
world markets
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Experienced, motivated management team
Directors:
 Jay Chmelauskas, President - Jinshan Gold Mines
 Daniel Kunz, Director
 Pierre Lebel, Chairman - Imperial Metals
 Ian He, Director
 Sun Zhaoxue, Chairman CNG
 Liu Bing, CFO CNG
 Wu Zhanming, CNG
 Chen Yunfei, Financial advisor to CNG
Management:
 Jay Chmelauskas, President & CEO
 Cal McKee, COO
 XD Jiang, General Manager
 Rick Low, VP of Finance
 Keith Patterson, VP Exploration
 Roger Walsh, VP Corporate Development
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Share Structure
 Cash and Cash Equivalents*
 Debt Tranche 1.
Tranche 2.
 Ownership
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Issued/Outstanding
Fully diluted
Share price
Market capitalization
TSX Listed
US $23M
CDN $30 M Note Facility
CDN $20 M Note Facility
China National Gold 42%,
Institutional 20% , Retail 38%
161 million
177 million
CDN $2.79
US $449 M
“JIN”
* Includes restricted cash of $14 M for letter of credit
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