Griffin Mining Regulatory News (GFM)

10 Sep 2007 07:00

Griffin Mining Ld10 September 2007 GRIFFIN MINING LIMITED 60 St James's Street, London SW1A 1LE, United Kingdom Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773 E mail: griffin@griffinmining.com 10th September 2007 OUTSTANDING ZINC & GOLD DRILLING RESULTS CONFIRMATORY RESULTS OF PROBABLE AMALGAMATION OF ZONES II & III AT CAIJIAYING Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce thelatest exploration results from its Caijiaying Mine and adjacent ground. Drill intercepts of high-grade gold have been obtained in the mine area at ZoneIII as well as significant regional exploration results which suggest a secondmulti-metal mine is likely to be established at Zone II, 1.2 kilometers to thesouth of the Caijiaying Mine. These results coincide with the planned start of production of gold, silver andlead from the Caijiaying processing plant upgrade due for completion before theyear's end. Best intercepts from Zone III included: • 12.45 metres at 7.45% Zinc and 8.55 g/t Gold • 12.35 metres at 8.31% Zinc and 6.15 g/t Gold • 31.7 metres at 6.2% Zinc and 6.07 g/t Gold • 4.3 metres at 17.54% Zinc and 20.65 g/t Gold Best intercepts from Zone II included: • 47.54 metres at 7.68% Zinc • 28.25 metres at 9.20% Zinc • 22.25 metres at 9.19% Zinc • 12.6 metres at 9.15% Zinc Zone III Mine Resource Extension Drilling Diamond drilling aimed at extending known resources at the Caijiaying Minecontinues to find new discoveries. In particular, a number of high-grade goldintersections have been recorded from zinc lodes beneath the current mininglevel in the western part of the deposit. Better intersections in recent drillholes include: Hole ID From To Interval Zn Pb Ag Au metres metres metres % % g/t g/t UGCJY-938 43.70 95.90 12.45 7.45 0.30 74 8.55UGCJY-939 67.75 80.20 12.35 8.31 0.22 30 6.15UGJCY-940 46.00 58.35 2.20 6.61 0.05 37 6.22UGCJY-875 45.20 47.40 2.20 17.14 0.34 59 9.85UGCJY-854 55.00 92.95 28.60 7.30 0.53 54 2.41UGCJY-922 49.05 77.65 2.15 6.49 0.16 33 5.77UGCJY-857 41.00 43.15 4.30 17.54 0.53 162 20.65 " 53.55 57.85 4.30 6.79 0.17 32 4.94UGCJY-855 61.45 96.15 31.70 6.20 0.04 23 6.07UGCJY-895 4.30 36.00 5.30 8.80 0.04 38 3.77UGCJY-811 44.40 49.70 14.00 15.69 0.79 52 1.86UGCJY-913 71.00 85.00 14.00 5.03 0.29 10 0.32 " 91.00 101.00 10.00 12.90 0.43 17 0.16UGCJY-846 48.00 59.00 11.00 11.20 0.35 18 - " 67.00 73.00 6.00 8.45 0.18 11 - " 98.00 112.00 14.00 8.10 0.09 49 -UGCJY-908 48.00 61.00 13.00 10.00 0.11 69 3.10 Many of the ore zones show good geological continuity and remain open alongstrike and down-dip. The mine schedule will be altered to enable furtherdrilling in these areas to determine the full extent of the gold zones and toensure that the precious metals circuit of the process plant is fullycommissioned before treating such high gold grades. Regional Exploration Excellent drilling results have also been received from the ongoing undergrounddrilling program at Zone II, located approximately 1.5 kilometres south of theCaijiaying Mine. Thirty-seven holes of the 50-hole program have been completed, with ore-graderesults received from thirty-six of those holes. The high grade results of leadand silver should be noted. Following completion of the program, a maidenresource estimate will be completed to enable development decisions to be made.Better intersections (above 5% Zn + Pb and a 1% lower cut-off) are shown: High-grade Drilling Results - Zone II Hole From To To Zn Pb Ag Au metres Metres Metres % % g/t g/tUGFOX-002 40.72 45.90 5.18 5.11 3.99 106 1.07UGFOX-004 87.20 90.50 3.30 5.36 - - - " 142.54 145.87 3.33 0.95 7.38 246 0.79UGFOX-007 119.55 122.60 3.05 5.92 - - -UGFOX-013 28.55 36.10 8.45 1.08 4.2 94 - " 93.00 115.25 22.25 9.19 - - -UGFOX-014 28.68 34.50 5.82 8.38 4.32 92 1.21 " 103.20 113.10 9.90 11.71 - - -UGFOX-018 144.70 156.30 12.60 9.15 1.37 51 0.66UGFOX-022 101.95 105.67 3.72 5.14 - - -UGFOX-031A 51.82 55.22 3.40 4.44 1.94 51 1.22 " 134.01 181.55 47.54 7.68 0.61 28 0.21 " 134.01 140.70 6.69 12.07 0.31 18 0.17UGFOX-032 143.30 171.55 28.25 9.20 1.38 33 0.31 Griffin has also completed an 11 hole surface diamond drilling program whichtested targets defined in a 2006 IP geophysical program south of the CaijiayingMine between Zones II and III, and targets based on historical drill holes.Ore-grade mineralization has been discovered at one IP target and one drill holetarget. 2007 Surface Drilling Results - Zone II - III Hole From To To Zn Pb Ag Au metres Metres Metres % % g/t g/t DDCJY-006 163.00 173.84 10.84 3.66 - - - " 200.50 203.55 3.05 7.42 - - 1.65 " 231.75 242.10 9.25 3.45 - - -DDCJY-009 80.31 84.06 3.75 5.38 7.88 140 0.59 " 115.00 127.57 12.57 5.47 1.38 72 - " 196.40 204.27 7.87 4.18 - 29 - " 207.62 211.00 3.38 12.34 - 14 -DDCJY-011 80.68 90.69 10.01 7.88 - 39 - The IP target is situated just 300 metres south of the Caijiaying mine accessdecline (Holes DDCJY-006 & 009), which provides an opportunity for rapiddevelopment of this area. Follow-up exploration is planned by branching off thedecline to enable underground drill testing. The mineralization is thought tobe an extension of a Zone III orebody displaced by faulting. Drill hole DDCJY-011 is located 230 metres northeast of Zone II where historicChinese drilling intersected some broad zones of lower grade mineralization.Essentially, this target is a northern extension of the Zone II mineralisationwhich was too far away for the current underground program to reach. Both successful targets are currently being followed up by a further surfacediamond drilling program as a pre-cursor to extending underground access fordetailed drill outs. The technical data contained in this disclosure has been compiled and approvedby Mr. Timothy Blyth, Ass Dip (Geology), MAusIMM. Mr. Blyth is a full timeemployee of Hebei Hua Ao Mining Industry Company Ltd, and is the OperationsManager at the Caijiaying Zinc Mine. He is a geologist with 24 years relevantexperience in the mining industry. Mr. Blyth is a member of the AustralasianInstitute of Mining and Metallurgy and qualifies as a Competent Person asdefined in the Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves (The JORC Code). Chairman Mladen Ninkov commented "The successful results from both the northernand southern ends of the valley, south of the Caijiaying Mine in Zone III,provides further proof to the Company's long held belief that Zone II and ZoneIII will eventually be proven to be one continuous orebody. Taken inconjunction with the outstanding gold results from the Caijiaying Mine area, itbegins to show the true size of the Caijiaying mineralized system and thepotential for further increasing the Caijiaying Mine's production of zinc, gold,silver, lead and other by-products. I am so pleased for the loyal shareholdersof the Company" Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Adrian Hadden Telephone: +44(0)20 7523 8353Collins Stewart Europe Limited Hugo de Salis Telephone: +44(0) 20 7242 4477St Brides Media & Finance Ltd Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). The Company's news releases are available on the Company's web site: www.griffinmining.com This information is provided by RNS The company news service from the London Stock Exchange