Last checked at 7 Jul 2022 07:00
8th Floor, Royal Trust House, 54-56 Jermyn Street, London. SW1Y 6LX, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
E mail: griffin@griffinmining.com
Record Second Quarter Production
Zone II Mine Plan Approval Update
7th July 2022
Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce record production results for the three months to the 30th June 2022, achieved after the successful recommencement of operations following the enforced suspension of all operations in the first quarter of this year for the Chinese Lunar New Year holiday celebrations, the 2022 Winter Olympics and the subsequent Winter Paralympics.
3 months to 30th June 2022 | 3 months to 31st March 2022 | 3 months to 30th June 2021 | ||
Ore mined | Tonnes | 338,790 | 17,975 | 277,112 |
Ore processed | Tonnes | 329,390 | 8,649 | 275,576 |
Zinc in concentrate Produced | Tonnes | 13,189 | 268 | 11,645 |
Gold in concentrate produced | Ozs | 3,504 | 1,474 | 4,080 |
Silver in concentrate produced | Ozs | 79,246 | 168 | 81,098 |
Lead in concentrate produced | Tonnes | 345 | 7 | 327 |
Average zinc price received per tonne | USD | 2,886 | - | 2,224 |
Average gold price received per oz | USD | 2,323 | - | 1,684 |
Average silver price received per oz | USD | 18.1 | - | 20.4 |
Average lead price received per tonne | USD | 1,788 | - | 2,026 |
Overview
Record ore mined, hauled and processed and record zinc metal in concentrate produced was achieved in the second quarter of 2022 at the annualised equivalent rate of circa 1.3 million tonnes of ore mined and processed.
Whilst Covid-19 restrictions remained in force throughout China, the sale and transport of metal in concentrate, services and supplies to the Caijiaying Mine have continued with minimal impact to operations.
Mining and processing have now reached the equivalent of over 1.3 million tonnes of ore per annum, all of which has been extracted from Zone III. Zone II not yet been placed into production.
Zone II Mine Plan Approval
The Zone II Safety Facility Design (the "Mine Plan") was completed for the mineral resources located in the upper part of Zone II between the 1420RL and 1340RL by the Company, in conjunction with the industry-leading Chinese design institute ENFI, in accordance with the guidance issued by the Hebei Provincial Emergency Response Bureau (the "Bureau"), and was submitted to the Bureau in June 2022 to allow for the commencement of Zone II development in July 2022.
The recent meeting of the Bureau to consider the Mine Plan interpreted the 4th Recommendation of the National Mine Safety Bureau to include a detailed design for all of Zone II to the 1000RL and the installation of all safety facility designs and access to the 1000RL, greatly expanding the scope of the project.
Consequently, the Company immediately began an expansion of its current Mine Plan to extend it to the 1000RL to accommodate the Bureau's ruling. The new revised Mine Plan will be reconsidered by the Bureau at the end of September should there be no additional travel restrictions imposed due the COVID-19 pandemic.
Although this is a material change in the scope of works for Zone II and is estimated to delay the Zone II Mine Plan approval by 3 months, this is more than offset by the opportunity to have the entire resource contained within Zone II included within an approved Mine Plan allowing advanced access for diamond definition drilling ensuring the long-term security of production without the continual need for ongoing approvals.
It is not expected to affect throughput for 2022 or 2023.
Chairman Mladen Ninkov commented, "I would firstly like to congratulate all the staff and contractors who have delivered such an extraordinary second quarter result for the Company. It augurs well for the remainder of the year ahead and for 2023. Secondly, in the terms of the Mine Plan delay, what at first seemed like a dark cloud and yet another delay on a licencing matter in China, having not forgotten the long delays experienced in obtaining the Zone II mining licence, has in fact delivered the figurative silver lining with the Company now being able to obtain the Mine Plan approval for the total known mineral resource on all levels of Zone II. This is quite a win for the Company. I look forward to further announcements as the year progresses."
About Griffin Mining Limited
Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). Griffin Mining Limited owns and operates through its 88.8% owned Joint Venture in China the Caijiaying Zinc Gold Mine, a profitable mine producing zinc, gold, silver, and lead metals in concentrates. For more information, please visit the Company's website giffinmining.com.
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Panmure Gordon (UK) Limited Telephone: +44 (0)20 7886 2500
John Prior
Ailsa MacMaster
Berenberg Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Wyllie
Deltir Elezi
BlytheRay
Tim Blythe Telephone: +44(0)20 7138 3205
Swiss Resource Capital AG
Jochen Staiger Telephone: +41 (0)71 354 8501
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014