Griffin Mining Regulatory News (GFM)

8 Jan 2007 07:00

Griffin Mining Ld08 January 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 8th January 2007 SUBSTANTIAL REVISED JORC MINERAL RESOURCE FOR ZONE III AT CAIJIAYING INCREASE 1.2 TO 3.0 MILLION TONNES OF ZINC METAL 0.2 TO 1.6 MILLION OUNCES OF GOLD 13.9 TO 53.7 MILLION OUNCES OF SILVER Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce asubstantial upwards resource revision following its first 18 months ofoperations at its Caijiaying Mine in the People's Republic of China. Theresults lift the contained metal in situ from approximately 1.2 to 3.0 milliontonnes of zinc metal, from 0.2 to 1.6 million ounces of gold and from 13.9 to53.7 million ounces of silver. The Company has now completed approximately 52,700 m of underground diamonddrilling. The underground drilling used to re-estimate the resource covers lessthan 15% of the entire resource area originally defined for the miningfeasibility study in 2002. The updated resource figures confirm the recent announcement to increase mineproduction to 750,000 tonnes of ore per annum by 2008. Significantly, the resource for silver and gold indicates that the inclusion ofa precious metals circuit will generate significant cash flows for the Company. The 2006 Mineral Resource was estimated at a zinc cut-off of 1%. Tabled belowis the summary of the recent up-dated 2006 Mineral Resource for the gradecontrol drilled mine area plus the 2002 Mineral Resource for the non gradecontrol drilled mine area at both a 1% and 4% cut-off grade. The aggregateresource is calculated by adding both the 2006 and 2002 resource estimates at a1% cut-off grade. Micromine 2002 Mineral Resource Estimate (Non Grade Control Drilling) Category Cut Tonnes Metal Grade Contained Metal -off Millions Zinc % Gold g/t Silver g/t Zinc million Gold million Silver tonnes Oz million Oz Indicated 1% 40.32 4.3 0.7 20 1.67 0.95 29.53 Inferred 1% 34.29 2.9 0.5 13 0.93 0.56 18.25 Total 1% 74.60 3.6 0.6 17 2.60 1.51 47.78 Indicated 4% 13.72 7.9 0.8 32 1.09 0.33 13.97 Inferred 4% 4.89 8.5 0.5 31 0.42 0.09 4.82 Total 4% 18.61 8.1 0.7 32 1.51 0.42 18.79 FinOre 2006 Mineral Resource Estimate (Grade Control Drilling) Category Cut Tonnes Metal Grade Contained Metal -off Millions Zinc % Gold g/t Silver g/t Zinc million Gold million Silver tonnes Oz million Oz Measured 1% 1.52 6.8 0.5 37 0.10 0.02 1.81 Indicated 1% 3.22 5.7 0.6 33 0.18 0.06 3.42 Inferred 1% 0.89 4.5 0.6 22 0.04 0.02 0.65 Total 1% 5.63 5.8 0.6 32 0.32 0.10 5.88 The information in this report that relates to the Mineral Resource estimatesfor the 2006 grade control drilled areas is based on information compiled byMr C Fawcett BSc (Hons),G Dip Eng, MAusIMM, of FinOre Pty Ltd and theinformation relating to the 2002 non grade control drilled area by Mr D Pertelof Micromine Consulting Ltd. Mr Fawcett is a Member of The AustralasianInstitute of Mining and Metallurgy and Mr Pertel is a Member of the AustralianInstitute of Geoscientists. Both Mr Fawcett and Mr Pertel have sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which they are undertaking to qualify asa Competent Person as defined in the 2004 Edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORCCode). Mr Fawcett consents to the inclusion in the report of the matters basedon his information in the form and context in which they appear. Chairman Mladen Ninkov commented "The new resource statement reaffirms the worldclass size of the current orebody which will be extracted at a higher rate withthe planned production increase in 2007 and 2008. Caijiaying continues toimpress and excite all those associated with it." Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Adrian Hadden / Christopher Rollason 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