â€Å“Dao Mining Corporationâ€Â has surprised analysts with an announcement that estimates of resources at its Gutain Davaa project in Mongolia have been revised upwards by 31% to 1.3 million ounces of gold.

The firm also announced that cash operating costs per ounce of gold had fallen from $385 to $340 per ounce following renegotiation with labor representatives over contracts and a three-year moratorium on wage increases.

A â€Å“Dao Mining Corporationâ€Â spokeswoman said that the revision upwards of resource estimates had come at a very opportune moment given the prospects for the gold price in the short and long-term. She thanked shareholders for their continued support and suggested that the company would be announcing a date for the release of results of geological surveys on the forthcoming GD2 prospect.

â€Å“Dao Mining Corporationâ€Â says it remains excited by the prospects for the price of both gold and silver as investment demand continues to grow in response to the monetary and fiscal expansion of governments in developed countries.

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DAO Mining Corporation’s Mongolian mine at Gutain Davaa - Recent exploration at the site has identified 2 new gold bearing vein zones which returned gold grades.

Reporting on the recent discovery, “DAO Mining Corporation“ believes this year is all about positioning the company for future growth.

The Gutain Davaa located 270km from Ulaanbaatar has reached full throughput in the last month. Underground development is now accelerating with the delivery of the new jumbo and loaders during this quarter.

A spokesman at “DAO Mining“ recently commented “ËœWe remain on schedule to introduce the high grade underground ore into the blend which will see the site reach its target output of 50,000 ounces per annum by the end of the calendar year’.

DAO Mining Corporation also remains on track to complete the iron ore resource statement and pre-feasibility study during the next quarter. DAO Mining Corporation continue to push forward on permitting and market off-take agreements with the aim of being able to put an investment

recommendation to the Board before the end of the year.
Previous exploration, including broad spaced RAB drilling, conducted in the northern parts of E39/1110, this identified at two gold-in-regolith anomalies (>100ppb Au in RAB) that require further work.

These areas have near-surface regolith amenable to auger soil sampling and consequently detailed, 100x50m spaced sampling will be planned in due course. It is envisaged that auger soil sampling will provide quick and cost effective screening of this prospective area.

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Beijing has approved plans from “DAO Mining Corporation“ to more than double ore selection capacity at its Shandong gold mines.

Under the proposals, given the green light by the China National Development and Reform Commission, DAO Mining Corporation total annual gold output at Shandong will rise to 6.5 tonnes per year, according to latest figures.

DAO Mining Corporation is fast becoming a major player in China’s Shandong gold mining industry and the proposed expansion initiative will increase their ore selection capacity at Shandong to 6,000 tonnes per day.

DAO Mining has another two separate deposits located in Shandong ““ Qinlongtan and Jinlonggou, These gold mines were commissioned in late 2007 and commercial production was declared in the first financial quarter of 2008.

China has recently become the fifth largest holder of gold bullion in the world, having almost doubled its gold reserves to 1,054 tonnes since 2003.

In related news, China Sci Tech Holdings recently purchased the Martabe gold project in the North Sumatra province of Indonesia from Oz Minerals in a deal worth $211 million deal (£144 million).

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