Asian Dragon is planning to mine several newly discovered gold veins at its Jinjishan Gold Mine in Henan, China.
Over the last three months, almost 1,000 meters of tunnelling have been completed, with many veins wider than one meter and showing grades ranging from three grams per tonne of gold to more than 30 grams per tonne.
The estimated ore reserves from this zone amount to more than 150,000 tonnes with a minimum grade of five to eight grams per tonne.
"Asian Dragon plans to mine these veins and commence full operation of the concentration mill running at capacity at three shifts per day," the company said.
As well as this, the firm is at work on a 150 meter sinking shaft at the Jindonggou Zone, where it will widen the existing tunnels and further expose the high quality gold ore.
Evaluations are also being undertaken at the Houyou Zone, where high grade veins are present near the surface. A geological survey will be undertaken here.