New JORC Report for Caijiaying Mine

RNS Number : 7748D

Griffin Mining Ld

22 May 2012

 



Griffin Mining Limited

New JORC Resource for Caijiaying Mine

32% Increase to Mineral Resource from 38.6 to 51.2 million tonnes

22^nd May 2012

Griffin Mining Limited ("Griffin" or "the Company") is delighted to announce that a new JORC reported Mineral Resource Estimate for Caijiaying has been finalized and not only increases the contained tonnes within the Zone III mineral resource after mining depletion, but also almost doubles the contained tonnes and metal within the Zone II mineral resource. In summary:

1.    A 32% increase in the mineral resource at Zones II and III rising from 38.6 million tonnes to 51.2 million tonnes, representing a 50 plus year mine life at the increased throughput rate. This represents an increase of 17% more zinc in the deposit.

2.    An 8% increase in the mineral resource at Zone III from 29.1 million tonnes to 31.5 million tonnes.

3.    A 107% increase in the mineral resource at Zone II from 9.4 million tonnes to 19.6 million tonnes.

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. Diamond drilling continued underground in Zone II with a total of 33,887 metres drilled. Surface diamond drilling continued in Zone II with a total of 10,053 metres drilled. This drilling continued to add significant mineralization to the Zone II mineral resource.

With the Mineral Resource Estimate at Zone II approaching 20 million tonnes and the drilling density achieving the required level, an application for a further mining licence will be made during 2012. The mining licence will ensure that all the known mineralisation 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 2012 Mineral Resource estimate is reported at a zinc cut-off of 1%. Tabled below is the summary of the recently updated 2012 Mineral Resource.

Lodes	Category	Tonnes	Metal Grade				Contained Metal
			Zinc	Lead	Silver	Gold	Zinc	Lead	Silver	Gold
		'000 t	%	%	Grammes per tonne	Grammes per tonne	Tonnes	Tonnes	Ounces	Ounces
Zone III -  Fu, Jin, Qing, Xiao, Ju, Chang, Hong Long lodes	Measured	4,447	5.6	0.32	30.3	0.76	249,000	14,000	4,331,900	109,400
	Indicated	10,926	4.84	0.26	27.03	0.73	529,000	28,000	9,495,000	258,000
	Inferred	1,146	4.78	0.28	31.37	0.46	55,000	3,000	1,156,200	17,000
	Sub total	16,519	5.04	0.28	28.21	0.72	832,000	46,000	14,983,100	384,000
Zone III -  Caijiaying Inferred	Inferred	15,075	3.91	0.22	21.68	0.76	589,000	32,000	10,507,600	370,400
Sub-total Zone III		31,594	4.50	0.25	25.09	0.74	1,422,000	78,000	25,490,700	754,800
Zone II  -  ALL	Measured	-	-	-	-	-	-	-	-	-
	Indicated	4,056	3.02	0.68	24.87	0.30	123,000	27,000	3,242,800	39,300
	Inferred	15,570	3.31	0.75	24.53	0.25	516,000	117,000	12,276,700	124,200
Sub-total Zone II		19,626	3.25	0.73	24.6	0.26	638,000	144,000	15,519,600	163,500
Total		51,220	4.02	0.43	24.90	0.56	2,060,000	222,000	41,010,200	918,300

The information in this report that relates to the May 2012 Mineral Resource estimates is based on information compiled by Mr Matthew Stevens, B.Sc. (Hons) Geology, Member AIG. Mr Stevens was a full time employee of CSA Global Pty Ltd. Mr Stevens has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has 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 Stevens consents to the inclusion in the report of the matters based on his information in the form and context which they appear.

Chairman's Statement

Chairman Mladen Ninkov commented, "The new JORC resource is a further indication and vindication of the size and scale of the orebody at Caijiaying.  New drilling continues on a consistent basis to add further resources and additional mine life to the operations at Caijiaying.  The Company continues to move forward with plans for even higher extraction and processing rates of this world class orebody.  Again, I could not be happier for the Company's shareholders."

Further information

Griffin Mining Limited

Mladen Ninkov - Chairman                                     Telephone: [phone]

Roger Goodwin - Finance Director

Panmure Gordon (UK) Limited                                                Telephone: [phone]

                  Dominic Morley

                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

 

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