Drilling Commences at Gold Mountain

    RNS Number : 5629U
  Tianshan Goldfields Ltd
  16 May 2008
   

    Tianshan Goldfields Limited
    ("Tianshan" or the "Company")


    DRILLING COMMENCES AT GOLD MOUNTAIN

    *     The 2008 20,000m Exploration Drill Programme has now commenced at Tianshan's 2.6moz Au Gold Mountain Project with 7,500 metres
planned near resource and 12,500 metres on regional exploration.
    *     Drilling has commenced at the southern extension to the Jinxi deposit where the 2007 exploration programme intersected 51m @ 4g/t
Au highlighting the potential of a high grade shoot beneath the blanket mineralisation.
    *      Regional exploration has commenced with extensive geological mapping and rock chip sampling of targets and will be followed by an
aggressive regional drilling programme commencing in July.
    *     Previous years work has highlighted 31 anomalous targets for follow-up.


    Tianshan is pleased to announce that the 2008 drilling programme has commenced at its 90% owned Gold Mountain Project in northwest
China. The Gold Mountain Project consists of 13 exploration licences in the Tulasi Basin, with a combined total area of 623.3km2. The
Yelmand-Jinxi, Mayituobi and Lion resources are located in the Gold Mountain tenement area, a single exploration licence, covering an area
of approximately 88.5km2. The Arxi mine, located immediately to the southeast of the Gold Mountain tenement, reportedly has a resource of
21Mt @ 5.8g/t Au (3.8M oz).

    TGF announced to the ASX/AIM 5th February, a significant upgrade in the classification of the resources at Gold Mountain with combined
total Measured and Indicated Mineral Resources increasing to over 2 million ounces. The combined total Measured, Indicated and Inferred
Mineral Resource for Yelmand-Jinxi, Mayituobi and Lion is estimated at 95 million tonnes at 0.9g/t Au for 2.64 million ounces of gold (@
0.4g/t Au lower cut-off grade) Table 1.  

    Table 1: Gold Mountain Micromine January 2008 Mineral Resource Estimate (at 0.4 g/t Au cut-off grade) in accordance with JORC
guidelines
                          Tianshan Goldfields - Gold Mountain Project - Total Mineral Resource as at January 2008
                          Measured                       Indicated                      Inferred                    Total Resource
 Deposit          Tonnes    Au g/t  Au Ounces    Tonnes    Au g/t  Au Ounces    Tonnes    Au g/t  Au Ounces    Tonnes    Au g/t  Au Ounces
 Yelmand-Jinxi  21,942,000     0.9    642,000  46,422,000     0.9  1,268,000  16,807,000     0.9    473,000  85,172,000     0.9  2,383,000
 Mayituobi       1,269,000     1.1     43,000   2,251,000     0.9     62,000     436,000     0.7     10,000   3,957,000     0.9    115,000
 Lion               26,000     0.7        538   1,221,000     0.6     22,000   4,398,000     0.8    119,000   5,644,000     0.8    142,000
 Total          23,237,000     0.9    686,000  49,894,000     0.8  1,352,000  21,641,000     0.9    601,000  94,772,000     0.9  2,640,000
    Note: Figures used are rounded


    The first priority of the 2008 exploration programme is underway with the commencement of drill testing the southern extension to Jinxi
where the 2007 exploration programme intersected 51m @ 4g/t Au highlighting the potential of this area to host a high grade shoot beneath
the blanket style mineralisation. Structures adjacent to Yelmand-Balake, especially in areas that will be affected by mine plan
infrastructure, will also be drill tested. This work may also include some grade continuity drilling within known resources.  Geotechnical
drilling for pit slope structural analysis will also commence in May. A 7,500 metre core drilling programme is planned, utilizing four
diamond core drill rigs, to complete the proposed evaluation and geotechnical pit slope stability geotechnical drilling programme in 2008.

    Detailed geological and structural mapping will be undertaken on the Gold Mountain tenement concentrating in the areas of known
resources. Bedrock drill samplings of areas close to known mineralisation, concealed by loess, and in proximity to planned mine
infrastructure will also be undertaken.
    Regional Exploration
    Regional exploration has commenced for 2008 with extensive geological mapping and rock chip sampling of targets. Regional exploration
will be completed over each of the current XGM licences, and on new tenements as acquisitions are completed, during the 2008 field season.
Previous years work has highlighted 31 anomalous targets within the 13 granted tenements which cover approximately 623.3km2. 

    Initial exploration is being focusing on the southern tenement of Nalensayi, where follow up drilling is required at prospects
identified in 2007, namely Tikexi, Jin Gu and Awuliya. This work will initially involve extensive prospect scale geological mapping and
detailed rock chip and soil sampling together with acquisition of ground magnetic data which has shown to be invaluable in interpreting key
structures that appear to control mineralisation. Initial results of this mapping have identified prospective zones of siliceous, pyritic
and argillic alteration of significant width and strike extent. Results for rock chips samples collected and subsequent evaluation of this
encouraging reconnaissance work are awaited 

    A planned 12,500 metres of combined reverse circulation and core drilling will commence over regional targets in the third quarter 2008.


    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                               




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