China Zhongjin Gold to buy 81-tonne gold deposit

SHANGHAI, March 7 (Reuters) - Zhongjin Gold Corp (600489.SS: Quote, Profile, Research, Stock Buzz), a major Chinese gold miner, said on Friday it plans to pay 900 million yuan ($126.7 million) for a gold mining company in the northern province of Shaanxi to boost its mineral reserves.

The company said it would take over the exploration rights of the target firm's deposit in Shaanxi province, which has been proved to contain 81 tonnes of gold. Miners have a priority to develop reserves to which they hold exploration rights in China.

Spot gold <XAU=> hit a record $991.90 on Thursday on dollar weakness. The surging prices have encouraged miners to expand, in a bid to extend their gains in the global bull market.

Zhongjin Gold Corp estimated late in January that its net profit rose more than 50 percent in 2007 because of a strong gold market. In 2006, the company made a net profit of 147.93 million yuan. ($1=7.104 Yuan) (Reporting by Alfred Cang; Editing by Anne Marie Roantree)