Griffin Mining Regulatory News (GFM)

27 Sep 2005 07:00

Griffin Mining Ld27 September 2005 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 27th September 2005 UNDERGROUND GOLD DRILLING RESULTS PRACTICAL COMPLETION OF CAIJIAYING MINE AND PROCESSING PLANT PRODUCTION UPGRADE STUDY COMMISSIONED Griffin Mining Limited ("Griffin"or "the Company") is pleased to announce that afurther exciting gold intersection has been obtained from the undergrounddrilling program at its Caijiaying mine in China, and that the Company hascommissioned a study to investigate upgrading production at Caijiaying. Underground Gold Drilling Results The Company is pleased to announce a further high grade intersection in onedrill hole of: 22.7 metres at 8.36 grams per tonne; 3.5 metres at 4.56 grams per tonne: and 3.9 metres at 5.28 grams per tonne. This follows the previous announcement by the Company of significant goldintercepts in one of the underground drill holes of: 8.8 metres at 19.2 grams per tonne; and 6.2 metres at 14.2 grams per tonne. The latest drill hole is located at the southern end of Zone III at Caijiayingsome 210 metres south of the previous intersection mentioned above. Bothintersections occur at a similar level with few drill holes between them.Further infill drilling will be undertaken to define the ore reserves in thisarea of the mine. RC Drilling The reverse circulation ("RC") drilling programme from surface at Caijiaying isprogressing well with approximately 75% of the planned programme completed. Dueto the current lack of capacity in the support services for the mining industry,assay results have been severely delayed with no meaningful results having yetbeen received. The Company will release such results as soon as they becomeavailable. Practical Completion of Caijiaying Mine and Processing Plant The Caijiaying mine and processing plant has now reached practical completionless than 3 months after production began in June of this year. The mine hasbeen consistently producing ore in excess of the required rate of 3,850 tonnesper week in the past month. The process plant has now been fully commissionedfor zinc production and has achieved its design specification level with respectto the recovery rate (92%) and initial production of 45.4 tonnes per day. Thefeasibility study head grade of over 10% zinc is now being fed into the mill. Asat the end of August over 50,000 tonnes of ore have been accumulated at surfacein stockpiles ready for processing. With the zinc circuit fully operational, thegold circuit is now being prepared for commissioning. Production Upgrade Study Commissioned With the exceptional mining and production results obtained to date, the Companyhas commissioned the relevant studies with a view to upgrading production atCaijiaying by the summer of next year. Griffin Mining Chairman Mladen Ninkov commented: "Caijiaying continues to provide ample evidence that the long term view held bythe Company that Caijiaying will develop into a long term, highly profitable,world class ore body and mining operation is valid and continues to strengthenwith each passing day. This is a continuing just reward for the loyalshareholders 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