The three gold deposits are located in Hunan Province, Sichuan Province and the Inner Mongolia Autonomous Region, with an exploration area totalling 231.83 square kilometres.

North China Zhaojin originally entered into a joint-venture agreement with Beijing Sino Tech Institute of Mineral Exploration Co. Ltd. (Beijing Sino Tech) on Aug. 19, 2007, in order to explore and develop the three mines.

According to the JV agreement, the joint venture, named Beijing Zhongse Hongxin Mining Technology Co. Ltd., will be financed in two phases. In the first phase, North China Zhaojin will invest RMB 9 million ($1.20 million) and Beijing Sino Tech will invest RMB 1 million ($132,922.16).

In the second phase, the registered capital will be increased through further investment from North China Zhaojin, as well as a non-monetary contribution from Beijing Sino Tech. The total scale of investment will depend on the value of the three gold deposits. Upon the completion of the second phase of investment, North China Zhaojin will hold a 51% stake in the joint venture, with Beijing Sino Tech holding the remaining 49% stake.

Zhaojin Mining commented in the announcement that Beijing Sino Tech's expertise in mineral exploration will facilitate the development of geological resources in mineral resource-rich northern China and northeastern China.

Zhaojin Mining is currently prospecting for and operating mines through seven subsidiary companies in Shandong Province, Hainan Province and the Xinjiang Autonomous Region.

The company produced a record high of approximately 15,648 kilograms of gold in 2006, up 25.4% from the previous year.