Griffin Mining Regulatory News (GFM)

8 Feb 2006 08:36

Griffin Mining Ld08 February 2006 8th February 2006 Caijiaying Regional Exploration Program Reverse Circulation Drill Results Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce theresults of its 2005 regional exploration program of areas surrounding theCaijiaying Mine (the "mine") in northern China. Zone II (East) A new zinc target was discovered at Zone II (East), 1,200 metres from Zone IIIwhere the mine is in operation, by an IP geophysical survey completed by Griffinin 2004. Drill testing of this target has resulted in a new discovery whichyielded RC drill intersections of: 52 metres @ 5.45% zinc from 72 metres depth, including12 metres @ 12.35% from 72 metres plus 4 metres @ 7.61% zinc from 92 metres A second hole of a similar orientation yielded: 12 metres @ 5.82% zinc, including8 metres @ 9.82% zinc and8 metres @ 116 g/t silver. Further work will be undertaken this year to ascertain the orientation of thismineralisation. Zone II (Central) The main part of Zone II, 200 metres to the west of Zone II (East) has also beenconfirmed as a precious metals prospect with significant gold and silverintersections of: 10 metres @ 2.21 g/t gold and8 metres @ 228 g/t silver from 171 metres. This suggests much more precious metal enhancement than was obvious fromprevious work. The zinc intersections from this zone are mainly in 4 metre composites and arein line with the previous Chinese results including: 4 metres @ 9.23% zinc from 116 metres;4 metres @ 8.16% zinc from 116 metres; and8 metres @ 5.06% zinc from 120 metres including 4 metres at 8.96% zinc4 metres @ 5.89% zinc from 132 metres Significantly, it was not possible to test the 1 kilometre long area betweenZone II and the mine at Zone III due to newly planted flora. A long lead timeis required for forestry permitting and land clearance to drill in this area.This should be obtained by the spring, ready for further follow-up drilling inthe summer. F45 Fault The primary target of the major F45 Fault zone, 1 to 1.3 kilometres south of themine, has been confirmed with significant gold intercepts recorded in two holes900 metres apart at about 150 metres depth. The two intersections recordedwere: 4 metres @ 3.96 g/t gold; and3 metres @ 4.24 g/t gold. As both of the positive results are from a similar depth and quite far apart,they indicate the level of gold precipitation in this target is similar to thelevel where gold is currently being proved in the mine by the ongoingunderground drilling program. Defining the level of gold precipitation is animportant step in targeting epithermal gold deposits and was a major aim of thesurvey. As gold results continue to emerge from the mine underground drilling program,the geometry and nature of the gold mineralisation is becoming clearer and thisknowledge is expected to impact favorably on the ongoing gold explorationprogram in the region. Conclusion The conclusions from the summers drilling program are preliminary as it willtake considerable further study to fully evaluate the large amount of data nowto hand. Mladen Ninkov, Griffin's Chairman, commented on these developments as follows: "Although it is unfortunate that the results from the reverse-circulationdrilling programme, which was completed in October 2005, were substantiallydelayed due to the extraordinarily slow delivery of results from the assayinglaboratory, it has been worth the wait. Caijiaying continues to fulfillexpectations with the continuing discovery of further mineralisation which hasevery possibility of developing into economic ore capable of being processedthrough the existing plant at Caijiaying. This is another positive result forthe shareholders of the Company." Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Andrew Smith/Martin Eales Telephone:+44(0)20 7523 8350Collins Stewart 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