Last checked at 17 Jan 2011 07:00
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Updated JORC Mineral Resource Estimate at Caijiaying
Substantial Increase in Tonnes and all Contained Metals
17th January 2011
Griffin Mining Limited ("Griffin" or the "Company") is very pleased to announce the latest JORC reported Mineral Resource Estimate for its Caijiaying Mine in the People's Republic of China. The results not only significantly increase estimates of the contained tonnes and metal within the Zone III mineral resource after mining depletion, but also doubles estimates of the contained tonnes of metal within the Zone II mineral resource.
In summary:
1. A combined 18% increase in the mineral resource at Zones II & III rising from 32.8 million tonnes to 38.6 million tonnes, representing a mine life of over 30 years at the increased throughput rate.
2. The following increases:
o 12.1% increase in contained Zinc;
o 28.4% increase in contained Lead;
o 15.2% increase in contained Silver; and
o 12.8% increase in contained Gold.
3. A 12% increase in the zinc grade and a 72% increase in the tonnage of the mineral resource at Zone II.
Drilling has continued to provide success along strike and south of Zone III to Zone II, allowing the reinterpretation and upgrade of the Zone II Mineral Resource Estimate. The 25,000 metre surface and underground drilling program is approximately 60% complete and is due to recommence in April 2011.
More underground drilling was undertaken in the mine corridor Between Zone II and Zone III during 2010. Drilling continued to intersect significant mineralisation which added to the Zone II Mineral Resource Estimate. This work will continue in 2011. With the Mineral Resource Estimate at Zone II approaching 10 million tonnes and the drilling density approaching the required level, it is envisaged that an application for a mining licence over Zone II will be made in the near future. The mining licence application will ensure that all the known mineralization covering Zones II and III and the contiguous area between them will be covered. This should allow a second ore source to be mined at Caijiaying and significantly extend the life of the mining operations.
The 2011 Mineral Resource estimate is reported at a zinc cut-off of 1%. Tabled below is the summary of the recently up-dated 2011 Mineral Resource
Zone III | ||||||||||
Metal Grade | Contained Metal | |||||||||
Category | Cut off | Tonnes | Zn | Pb | Ag | Au | Zn | Pb | Ag | Au |
'000 t | % | % | g/t | g/t | t | t | Oz | Oz | ||
Measured | 1% | 4,793 | 6.57 | 0.40 | 33.34 | 0.86 | 314,842 | 19,329 | 5,137,406 | 131,829 |
Indicated | 7,352 | 5.47 | 0.31 | 30.15 | 0.89 | 402,501 | 22,639 | 7,126,105 | 209,726 | |
Inferred | 17,020 | 4.15 | 0.26 | 26.53 | 0.95 | 706,501 | 43,737 | 14,519,565 | 521,491 | |
Total: | 29,164 | 4.88 | 0.29 | 28.56 | 0.92 | 1,423,843 | 85,769 | 26,783,076 | 863,049 | |
Zone II | ||||||||||
Metal Grade | Contained Metal | |||||||||
Category | Cut off | Tonnes | Zn | Pb | Ag | Au | Zn | Pb | Ag | Au |
'000 t | % | % | g/t | g/t | t | t | Oz | Oz | ||
Measured | 1% | - | - | - | - | - | - | - | - | - |
Indicated | 4,061 | 3.44 | 0.70 | 26.03 | 0.34 | 139,655 | 28,509 | 3,398,903 | 43,871 | |
Inferred | 5,386 | 3.71 | 0.56 | 23.90 | 0.29 | 199,706 | 30,087 | 4,138,064 | 50,617 | |
Total: | 9,447 | 3.59 | 0.62 | 24.81 | 0.31 | 339,362 | 58,596 | 7,536,968 | 94,488 | |
Note: Zone II Resource includes 1.49 million tonnes at 3.09% Zinc oxide material.
The information in this report that relates to the January 2011 Mineral Resource estimates is based on information compiled by Mr Luke Marshall BSc Geology, Member AIG. Mr. Marshall is a full time employee of Hebei Hua Ao Mining Industry Company Limited, a subsidiary of Griffin Mining Limited. Mr. Marshall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). Mr Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.
Chairman Mladen Ninkov commented, "Caijiaying continues to deliver on its promise as an extensive, long life and highly profitable mineral system. The shareholders should continue to enjoy the benefits of this mine for a very long time."
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman Telephone: +44 (0)20 7629 7772
Roger Goodwin - Finance Director
Panmure Gordon (UK) Limited
Dominic Morley Telephone: + 44 (0)20 7459 3600
Hannah Woodley
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
GLOSSARY OF TECHNICAL TERMS
"cut-off" the grade above which mineralised material is considered to be ore
"grade" the amount of mineral in each tonne of ore.
"g/t" gramme/metric tonne
"Indicated Resource" that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
"Inferred Resource" that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
"JORC Code" the Australasian Code for Reporting of Mineral Resources and Ore Reserves, 1999. Prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia
"Measured Resources" is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity
"Mineral Resource" a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge
"Mineral Reserve" that part of a Mineral Resource which has been demonstrated to be economically exploitable