(Alliance News) - Griffin Mining Ltd on Thursday reported the new global mineral resource estimate for its Caijiaying zinc-gold mine in China.
The company which invests in mining in China said the new global mineral resources are from the four main deposit zones. Griffin said total contained metal is 4.0 million tonnes of zinc, 600,000 tonnes of lead, 88.8 million ounces of silver, and 1.6 million ounces of gold.
This is an increase of about 50% from the previous mineral resource, which incorporated zone II and III only. This recent resource increase has now triggered a development programme to be commenced to enable increased production to 1.5 million tonnes per annum, Griffin said, delivering an 80% production increase in the next two years.
In the future, the company said an additional mine expansion may be delivered with the inclusion of the zone V and VIII mineral resources that are located within the company's retention licence adjacent to the west of zone II and north of zone III, respectively.
Chair Mladen Ninkov said: "Finally, the vast potential of Caijiaying has been uncovered and confirms the absolute world class nature of the deposit. Yet we are still only in the earliest of stages of our journey of understanding what still could lie around us and below us"
Griffin shares were trading 8.3% higher in London on Thursday at 157.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Griffin Mining (GFM)