Griffin Mining Regulatory News (GFM)

7 Apr 2008 07:00

Griffin Mining Ld07 April 2008 Griffin Mining Limited NEW MINE DISCOVERED AT CAIJIAYING JORC RESOURCE FOR NEW DISCOVERY COMPLETED Griffin Mining Limited ("Griffin" or "the Company"), is pleased to announce thediscovery of a new, economically extractable, mineral discovery at Zone II atCaijiaying, only 1.5km from the current Caijiaying processing facilities andover which a maiden Mineral Resource estimate to JORC reporting standards hasalready been calculated. Summary: • New mine discovered at Caijiaying • Only 1.5km from current processing facilities • JORC Resource already defined • Significant exploration potential with 1.1 kms between Zones II & III mineralized and yet to be drilled Drilling conducted during 2007 has defined a Total Mineral Resource estimate atZone II of 5.49 million tonnes of 3.2% zinc ("Zn"), 0.6% Lead ("Pb"), 0.3 gramsper tonne ("g/t") gold ("Au") and 24 g/t silver ("Ag"). This estimate was basedon ordinary Kriging and a cutoff of greater than or equal to 1% zinc. Gross*contained metal in situ based upon these estimates for both indicated andinferred resources include; 176,000 tonnes zinc; 53,000 ozs gold; 4.3 millionozs silver; and 33,000 tonnes lead, as derived from the table below. Mineral Resource Estimate for Zone II Material Tonnes Zn% Pb% Au g/t Ag g/tINDICATED Oxide 230,000 1.9 0.7 0.3 20.0 Transitional 330,000 1.9 0.8 0.2 22.7 Fresh 3,430,000 3.3 0.5 0.3 25.7 3,990,000 3.1 0.5 0.3 25.1 Sub-totalINFERRED Oxide 130,000 2.4 0.5 0.2 21.2 Transitional 430,000 2.9 0.5 0.3 16.7 Fresh 940,000 3.8 0.8 0.4 25.5 1,500,000 3.4 0.7 0.4 22.6 Sub-total TOTAL 5,490,000 3.2 0.6 0.3 24.4 Notes: Rounding errors may occur The information in this report that relates to the Mineral Resource estimate forZone II (Fox) is based on information compiled by Mr G. Fahey of CSA AustraliaPty Ltd (CSA). Mr Fahey is a Chartered Professional and Member of TheAustralasian Institute of Mining and Metallurgy and a Member of the AustralianInstitute of Geoscientists . Mr Fahey has sufficient experience which isrelevant to the style of mineralisation and type of deposit under considerationand to the activity which they are undertaking to qualify as a Competent Personas defined in the 2004 Edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves' (the JORC Code). MrFahey consents to the inclusion in the report of the matters based on hisinformation in the form and context in which they appear. Mineralisation has now been found over a 2 kilometer length from Zone II in thesouth to Zone III in the north. The 1.1 kilometer gap between these two hasbeen drill tested in a number of places and found to contain similar grades andwidths to those of Zone III which is currently being mined by Griffin at theCaijiaying Zone III Mine. Surface Diamond Drill Hole Results Drill Hole No. From (m) To (m) Width (m) Results DDCJY-006 -60/090 163.00 173.84 10.84 3.15% Zn 200.50 203.55 3.05 7.42% Zn, 1.65g/t Au 217.02 218.80 1.78 4.50% Zn 231.75 235.64 3.89 4.62% Zn 237.73 241.00 3.27 4.02% Zn DDCJY-009 -60/090 80.31 84.06 3.75 5.38% Zn, 7.88% Pb 115.00 125.00 10.00 6.06% Zn, 0.71% Pb 207.62 211.00 3.38 12.34% Zn DDCJY-014 -60/090 82.30 84.35 2.05 29.59% Zn, 2.14% Pb, 168g/t Ag 89.90 93.75 3.85 4.57% Zn, 1.27% Pb, 50g/t Ag DDCJY-015 -60/090 77.44 93.30 15.86 3.31% Zn, 5.14% Pb, 70g/t Ag 106.50 111.35 4.85 1.76% Zn, 1.83% Pb, 44g/t Ag 171.45 177.70 6.25 4.59% Zn, 0.39% Pb, 0.74g/t Au, 33g/t Ag 187.00 193.20 6.20 2.89% Zn, 31g/t Ag 198.10 201.07 2.97 10.43% Zn, 15g/t Ag DDCJY-005 -60/090 53.69 55.50 2.81 3.15% Zn 134.20 140.10 5.90 4.53% Zn To speed drilling and to avoid having to drill through the overlying sand, adecline is being developed that will link the Zone III decline with the Zone IIdecline and, from this new decline, further underground drilling will beconducted. This drilling will then be used to further define the mineralisationpresent between Zone II and III. Mladen Ninkov, Griffin's Chairman, commented on these developments as follows: "Caijiaying continues to live up to the expectations the Company has always hadfor it with the discovery of a totally new mining area for the Company whichbrings with it obviously large economic and operational benefits. The Companynow has every expectation that Zones II and III converge and the Company isintensifying its exploration efforts with a new drive and follow-up undergrounddrilling to prove the convergence of these two zones of mineralization. TheCompany could not be more pleased by this exciting discovery and development." Note: * Griffin Mining Ltd has a 60% interest in the Caijiaying mine and mineralinterests covering the above, but is entitled to 100% of the net cash flows fromCaijiaying for the first three years from the commencement of commercialproduction in July 2005. 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 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