TGF Tianshan Gold.

RNS Number:0382F
Tianshan Goldfields Ltd
03 October 2007



                          TIANSHAN GOLDFIELDS LIMITED
                         ("Tianshan" or the "Company")

                                 PROJECT UPDATE

*   Phase One 2007 drilling completed:

      -   Significant widths of  higher-grade mineralisation at Jinxi (51m @ 
          4.01g/t)

      -   Yelmand infill drilling confirms grade continuity and extensions to 
          the west

*   Phase Two 2007 drilling commenced:

      -   Definition drilling at Jinxi high grade zone

      -   Yelmand western extensions to be evaluated further

      -   Ongoing regional targets to be followed up and drill tested

*   Pre Feasibility Studies on-going to advance development of the Gold
    Mountain Project

*   Tianshan Goldfields Limited currently trading at  $US27.3 per attributable 
    combined resource ounce


2007 Field Programme

The first phase of drilling has confirmed significant widths of higher grade
mineralisation in the southeast and west of the Jinxi deposit. Final assays
received for Yelmand infill drilling have confirmed grade continuity within the
resource envelope and extensions to mineralisation to the west.


The second phase of the 2007 programme will focus on further infill drilling at
Jinxi to evaluate continuity of higher grade mineralisation to the southeast and
recently confirmed western extensions to Yelmand will be evaluated further.


The second phase of the program includes a budgeted regional programme of
approximately 5,000 metres of diamond core drilling.  Regional targets include
Kezele, located 5km south of the Yelmand deposit, where significant
mineralisation was intersected during the first phase. Other regional targets
planned for drilling include Chart, Awuliya and Linchang.


Pre-feasibility studies aim to advance development of the Gold Mountain Project


The 2.8moz1 Gold Mountain Project in north west China ("Gold Mountain")
(Tianshan Goldfields Ltd 90%) consists of large tonnage, disseminated style gold
deposits in near surface breccia blankets, potentially associated with high
grade feeder breccias and veins.  These styles of deposits are typically
developed as low cost open pit mining operations, with gold recovery by low
capital intensity heap leaching methods.


Work commenced at the beginning of 2007 on pre-feasibility studies for a
potential open pit and heap leach mining operation on three deposits within the
current resource estimate of the Gold Mountain Project including Yelmand,
Mayituobi and Jinxi.


This work has included ongoing metallurgical studies and column leach tests, and
infill and extensional resource drilling to increase confidence of the known
deposits for mine planning. Studies were also commenced during the year to
gather base line environmental, social, surface and ground water data and
preliminary work on acid rock drainage and heap leach pad location and design.
The completion of these studies is required for mining licence application and
mine development proposal. Results to date have allowed the board to consider
mining and processing strategies at Gold Mountain which, along with
metallurgical results, will be released to the market shortly.


Capital Structure

Ordinary shares in issue                          187,192,597

Share price (approx.)                             19p/AUD$0.44*

Market capitalisation                             AUD$82.4 million

Cash                                              AUD$6 million                                           

Enterprise value per oz (2.8moz1-90%)             US$27.3 attributable per oz

*1GBP = AUD$2.31


Convertible Securities

Shareholder options2                              34.5 million

Employee options2                                 4.6 million

MSX preference share3                             1


1.    Combined indicated and inferred resource as announced to the market on 19 
      December 2006.

2.    The options can be exercised at a fixed price (between AUD$0.175-$0.40 
      depending on the individual option term) and can be exercised any time up 
      to 31 December 2008.

3.    Preference share converts to 26 million TGF ordinary shares upon 
      confirmation of 2 million gold resource ounces (including 1 million
      indicated) to JORC standard. The conditions of this preference share have 
      been met.  The holder may elect to convert at anytime.

Mr SL Allnutt (AusIMM, MAIG), Chief Geologist of Tianshan Goldfields Limited,
compiled the technical aspects of this report relating to the Gold Mountain
Project. Mr Allnutt has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity that
is being reported on to qualify as a Competent Person as defined in the 2004
Edition of the Australasian Code for Reporting of Mineral Resources and Ore
Reserves. Mr Allnutt consents to the inclusion in the report of the matters in
the form and context in which it appears.


For Further Information, Please Contact:

Tianshan Goldfields Limited

Level 22, Allendale Square

77 St Georges Terrace

Perth WA 6000

Telephone:               +61 8 9221 7729

Fax:                     +61 8 9221 7866

Keith Liddell - Chairman

Jason Bontempo - Chief Financial Officer


WH Ireland Limited

11 St James's Square

Manchester

M2 6WH

Telephone:              +44 161 8322174

David Youngman

Katy Mitchell



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

DRLFSFSWDSWSEDS

Tianshan Goldfields (LSE:TGF)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024

Tianshan Goldfields (LSE:TGF)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024