China's Sino Gold eyes jump in output in 2009

SYDNEY, Dec 11 (Reuters) - Sino Gold (SGX.AX), which operates China's second-largest gold mine, on Thursday predicted it will increase production by as much as 53 percent next year as it prepares to open a second mine.

Australia-listed Sino Gold forecast combined 2009 gold production from its Jinfeng mine and White Mountain lode under development of between 210,000 ounces and 230,000 ounces, up from this year's tally of 150,000 tonnes from Jinfeng.

The average cost of mining the gold on a cash basis at both sites will be less than $400 per ounce, which is half the current world price XAU=, the company said in a statement.

Jinfeng, in Guizhou Province, second in size only to the Zijinshan deposit in Fujian province, should yield around 45,000 ounces of gold in the fourth quarter.

The White Mountain mine in Jilin Province, which conducted its first gold pour in late October, will start commercial output in early 2009, steadily increasing its yield over the year, Sino Gold said.

Sino Gold shares rose 14 percent to A$4.42 on Thursday, bucking a downtrend in the wider market .AXJO. ($1=A$1.51) (Reporting by James Regan)