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Location The Changkeng gold deposit is located approximately 45 km southwest of Guangzhou, the fourth largest city in China with 13 million people and the capital city of Guangdong Province. The project is adjacent to Minco Silver Corporation's world-class Fuwan Silver deposit and situated close to well established water, power, and transportation infrastructure. Work Program
Ownership Guangzhou Minzhong Mining Co., Ltd. ("Minzhong"), a cooperative joint-venture established among Minco Mining (China) Co., Ltd. ("Minco China"), Guangdong Geological Exploration Corporation ("GGEC"), and two private Chinese companies to jointly explore and develop the Changkeng Gold Property, has signed a purchase agreement to buy a 100% interest in the exploration permit (the "Changkeng Exploration Permit") on the Changkeng Gold Property from 757 Geo-Exploration Team of Guangdong Geological Exploration Bureau ("757 Exploration Team"). Total purchase price (the "Purchase Price") has been appraised to be RMB 49 million (approx. US $6.8 million), payable in three installments within two years. The Ministry of Land and Resources of China has approved the Purchase Price and the transfer of the Changkeng Exploration Permit from 757 Exploration Team to Minzhong. Under the terms of the agreement, Minco China, a wholly owned subsidiary of Minco Gold, has the right to earn a 51% equity interest in Changkeng with a total contribution of RMB 51 million (approx. US $7.1 million). The other shareholders will contribute RMB 49 million (approx. US $6.8 million) for their 49% equity interest in Minzhong. Background
Geology and Mineralization The Changkeng-Fuwan gold and silver deposits occur within the Sanzhou basin, which is a triangular-shaped, Upper Paleozoic fault-bounded basin. Upper Paleozoic and Mesozoic sedimentary units are folded into an open syncline with a northeast-trending axis. A shallow dipping fault zone developed near the unconformity separating Lower Carboniferous limestone and Upper Triassic clastic sedimentary units hosts the gold and silver deposits at Changkeng and Fuwan.
Resource Estimate An independent resource estimate was calculated by P&E and released on March 12, 2008. The estimate contains an indicated resource of 2.1 million tonnes @ 5.61 g/t gold (Au) for a total of 379,000 oz Au and an inferred resource of 2.2 million tonnes @ 4.82 g/t Au for a total of 333,400 oz Au. The Changkeng deposit remains open along strike to the northeast and southwest. Details of the resources residing on the Changkeng Deposit are shown in Table 1.
Table 1: Resource Estimate @ 1.5 g/t AuEq(ii) Cut-Off Grade.
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AuEq AuEq
Au Au Ag Ag (ii) (ii)
Classification Tonnes (g/t) (oz) (g/t) (oz) (g/t) (oz)
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Indicated 2,101,000 5.61 379,000 10.7 723,000 5.81 392,100
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Inferred 2,152,000 4.82 333,400 9.3 643,000 4.99 345,100
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(ii) The AuEq grade was calculated from metal prices of Au US$650/oz
and Ag US$12.50/oz with respective recoveries of 95% and 90%. The
calculated Au:Ag ratio was 55:1.
The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.The purpose of this resource estimate was to:
Drilling Results Minco completed a limited drilling program at Changkeng in October 2004,
Table 2: Assay results from diamond drill holes completed by Minco in 2004  In late 2007, 6 holes were drilled to expand and confirm the mineralization on the Changkeng gold deposit. Significant gold results of the drilling are as follows and the complete results are listed in Table 3 below:
Table 3:
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Average Grade
Intercept -----------------------------
Hole From To (i) Au Ag Pb Zn
No. (m) (m) (m) (g/t) (g/t) (%) (%)
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CK 2002 184.42 188.30 3.88 0.18 152.37 0.03 0.07
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205.40 213.30 7.90 0.16 264.55 0.13 0.25
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CK2005 99.82 101.81 1.99 1.58 4.6 n/a n/a
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CK2006 121.11 133.73 12.62 5.788 40.51 n/a n/a
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CK2007 114.81 116.81 2.00 1.12 78 n/a n/a
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122.45 130.45 8.00 5.54 5.7 n/a n/a
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CK2009 65.44 66.48 1.04 1.03 46 n/a n/a
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CK2010 153.12 179.93 26.81 7.83 5.7 n/a n/a
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including
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159.12 173.93 14.81 12.23 14.81 n/a n/a
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(i) True widths for the mineralized zones are typically from 75% to 95%
of the stated intercepts.
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