Sino Gold is targeting to launch as many as five gold mine to increase its Jinfeng, White Mountain and Eastern Dragon projects, may overtake India as the world’s top consumer of gold this year, the World Gold Council said on July 24.

Sino Gold rose 2.8 percent to close at A $ 5.44 in Sydney trading. Gold has been 8.3 percent gain this year, and traded at $ 954.83 an ounce at 4:37 am Singapore time.

Companies want to cut production costs of $ 300 an ounce, also said Johnstone. Company production of gold in the average cost of $ 391 an ounce in the second quarter.

Eastern Dragon mine, to start at the end of 2010, will produce an average of 90,000 ounces a year at cost of $ 125 per ounce at least five years, Chief Operating Officer Cobb Johnstone said today at the Diggers and Dealers conference in Kalgoorlie, Western Australia. He does not say what the target is output, or to two times compared to the projection.

“This starts to give us some pretty interesting margin,” said Johnstone Eastern Dragon, in the province of Heilongjiang. “Gold price margins in 2009 should be close to $ 500 an ounce.”

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