AR. Archipelago Res

RNS Number:2459N
Archipelago Resources PLC
06 December 2006



                                  ANNOUNCEMENT


                     ARCHIPELAGO FARMS INTO FOUR GOLD MINES
                          IN CHINA'S 'GOLDEN TRIANGLE'


              Agreement with Provincial Government Mining Company
                          to Earn a 60% Interest via a
                    Broad Ranging Cooperative Joint Venture
                    Providing Access to Additional Projects


Archipelago Resources plc ("Archipelago" or "the Company") is pleased to
announce that following completion of a positive evaluation of four small
operating gold mines owned by provincial government mining company, China
Guangxi Gold Company ("CGGC"), the Company has signed an agreement with CGGC and
Australian listed Austpac Resources N.L. ("Austpac") to form an incorporated
Cooperative Joint Venture ("CJV") to explore for and develop any economic
sulphide gold mineralisation discovered at the four mines or in additional
projects introduced by CGGC.


The projects are all located in far western Guanxi Province within a gold rich
region of southern China referred to as the 'golden triangle' an area which
accounts for much of China's gold production.  The recently discovered 4 million
ounce Jinfeng sulphide gold deposit now being developed by Sino Gold is located
within this region.


Under the terms of the CJV, Archipelago and Austpac will earn an 80% interest
and CGGC will hold a 20% interest in any gold deposits discovered by the CJV.
Under a separate agreement with Austpac, Archipelago has the right to acquire up
to 60% of these deposits (i.e. 75% of the foreign interest) by sole funding
expenditure to the extent of approximately US$2.7m, with the right to withdraw
at agreed milestones.  The first phase of exploration work will cost
approximately US$0.5m.


The four gold mines comprising the package are Gaolong, Nabi and Badu in Guangxi
Province and Naneng in the adjoining Yunnan Province.  However the CJV will also
include the evaluation of additional mines and prospects owned or acquired by
CGGC within Guangxi province.  Archipelago considers the broad ranging nature of
the CJV to be very attractive, commercial and in the best interest of all of the
CJV parties, as it maximises the potential to locate, delineate and develop a
viable operation.


Operations to date at the four mines are small in scale being limited to near
surface oxide ores processed by way of heap leach. These operations have
resulted in the exposure of primary refractory sulphide mineralisation at most
of the projects which provide excellent starting points for the CJV exploration
program, staged to total US$3.5m over a two year period.



Archipelago considers that the projects have very good potential to support both
open pit and underground mining operations, subject to the design and
construction of an appropriate processing plant(s) to treat the sulphide ore.
Archipelago is confident that via this wide ranging relationship it can,
together with its partners, bring its exploration, development and mining and
processing expertise to the region to achieve a common objective of early and
successful project development.



The host rocks are Permo-Triassic in age and gold mineralisation is frequently
structurally controlled with mineralisation associated with domes and fault
structures related to them. Deposits of the type in question also frequently
show an association with finer clastic or carbonate sediments and are commonly
described as "Carlin type" after similar mineralisation in the Carlin trend in
Nevada.



Subject to completion of due diligence, appropriate joint venture documentation
and statutory approvals, exploration is scheduled to start early next year.
Archipelago is pleased with this new venture in another resource rich Asian
country and looks forward to commencing drilling at the earliest opportunity.



Archipelago is a mining company listed on the AIM market of the London Stock
Exchange. The Company's principal activities are gold mining and exploration in
Indonesia (as 85% owner of the Toka Tindung Gold Project in Sulawesi), Vietnam
(as majority party in the Pac Lang and Cam Thuy/Ba Thuoc joint ventures with
Vimico a Vietnamese Government mining company) and the Philippines (as option
holder over a 100% interest in the Corplex tenements).



The Toka Tindung Gold Project has a resource of 1.7M ounces (ozs) of gold, of
which at least 0.9M ozs will initially be mineable by open pit.  The project is
targeted to commence production at the rate of 150,000 ozs per annum increasing
to a target of 160,000 ozs per annum in subsequent years.  Subject to continuing
construction progress, production remains on schedule to commence in the third
quarter of 2007.





Further Info:      Colin Loosemore, Managing Director, Archipelago Resources Plc.
                   Tel:         00-618-9364-8301

                   Richard Chase, Ambrian Partners Ltd
                   Tel:         020-7776-6461

                   Ron Marshman / John Greenhalgh, City of London PR Limited
                   Tel:         020-7628-5518

                   Gerry Beaney / Maureen Tai, Grant Thornton Corporate Finance
                   Tel:         020 7383 5100


                                               www.archipelagoresources.com.au





                      This information is provided by RNS
            The company news service from the London Stock Exchange
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